James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context

Question 6: To ask the Minister for Transport if he has been consulted on the recent proposal of the Dublin Airport Authority in its recently announced expansion plans; and if he will make a statement on the matter. [17532/08]

Liz McManus (Wicklow, Labour)
Link to this: Individually | In context

Question 46: To ask the Minister for Transport if he has been kept fully informed by the Dublin Airport Authority and if he has reviewed plans by the DAA to develop a new €4 billion business park, Dublin Airport City; if he has had contact with the Department of Finance in terms of investment in this project being made partly through the National Pensions Reserve Fund; the indicative completion date for Dublin Airport City; and if he will make a statement on the matter. [17323/08]

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 6 and 46 together.

I have been briefed by the Dublin Airport Authority, DAA, on the Dublin Airport City business park project, which was launched by the DAA on 25 April 2008. As explained by the DAA at the launch of the project, a source of funding for the project has yet to be agreed. I understand phase I of the development may be completed by 2015 with the full project being realised by around 2033. I welcome a project that has the potential to take advantage of a substantial land bank at the airport and which would generate substantial benefits for the economy.

As to the National Pensions Reserve Fund, this was established in 2001 with the objective of meeting as much as possible of the cost to the Exchequer of social welfare pensions and public service pensions to be paid from 2025 until at least 2055. The fund is controlled and managed by the National Pensions Reserve Fund Commission. The commission has discretionary authority to determine the fund's investment strategy in accordance with the fund's statutory investment policy of securing the optimal total financial return, provided the level of risk to the moneys held or invested is acceptable to the commission. It is independent in its decisions in that regard.

Infrastructure forms part of the fund's strategic asset allocation and the commission is keen to invest in Ireland as part of its overall infrastructure programme. As I have stated, the independence of the commission in making those decisions is enshrined in law.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

I welcome the proposals but does the Minister not believe the airport authority has enough to do? As it indicates in its mission statement, it is an airport management company whose principal activities include airport management operation and domestic and international development. Does the Minister believe it should stick to that role?

While welcoming and supporting the proposals, perhaps Enterprise Ireland, Fingal County Council or others should deal with this issue. Does the Minister agree it is time for the authority to address the issues of congestion and capacity at Dublin Airport?

I welcome the fine new places to be built. I received a phone call yesterday from a pensioner who had to remove his shoes going through security. As there was no chair available, he found it extremely difficult to take his shoes off. These are simple issues the authority could be addressing and is not. The big plans are very welcome and I support them but somebody else should be dealing with them.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

I welcome the proposal. We have had, to some extent, informal development around the airport region and it is interesting to attempt to structure this through the DAA. Was this proposal part of the business plan put to the Minister by the Dublin Airport Authority with regard to plans for the three airports?

The Minister mentioned the National Pensions Reserve Fund but has he had any discussions with the new Taoiseach and former Minister for Finance, or with the new Minister for Finance, on the possibility of funding through this area? Will the Minister be particularly concerned about airport charges? My colleague has mentioned concerns people have with regard to parking and the massive escalation of charges. Is there not a suspicion in many airport users and passengers that they will, in effect, end up paying the DAA the seed capital for this massive project?

The Minister mentioned the indicative completion date for phase I but what is the timeframe for the whole project?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The first phase is proposed for completion in 2015, with the overall aim to have the project completed by 2033 at the latest. On the basis of what I have been told, I have no concern that airport charges would be bumped up to pay for this. This is quite a separate project and would be managed as such. Funding for the project will be independent of all the capital investment projects they have at the moment. That is one issue I would insist upon and it is important there is no cross-subsidisation. Perhaps the Deputy was speaking more about a cross-charge in voicing a fear that airport passengers would be paying for this.

I have had no discussions at all with the former Minister for Finance, the current Taoiseach, on how we might use the pension funds because, as I indicated in my reply, that is a matter for the National Pensions Reserve Fund itself. It does not discuss the matter with us or take direction. It is independent and the law was always specifically provided that it would operate that way precisely because interference was not wanted in case of investment decisions being made on a political rather than financial basis. I support that.

With regard to Deputy O'Dowd's points, I absolutely agree the DAA should, as an airport authority, concentrate on its job, do it very well and look after its customers. In fairness, with increased numbers causing difficult circumstances currently, and particularly over the last number of years before pier D opened, it has done a reasonable job. I have stated this directly to its representatives and in this House. However, there is no doubt it has been difficult for customers.

I agree with the Deputy and one issue I would be particularly focused on is ensuring the DAA does not take its eye off the ball.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Absolutely.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

It must consider very carefully what is happening but do the job it is meant to. It has a €2 billion development in terminal 2, the runway etc., and that is to improve the airport for all its customers, both passengers and airlines. It must concentrate on that project.

The proposed project is fantastic and will have significant value, not just for the immediate area but for the economy as a whole. The authority is to be commended for its foresight. It has land available and it is lucky enough in that it is one of the few airports in Europe which has land that can be used for this kind of purpose. Many airports are totally hindered because of congestion and an inability to expand.

To give a context to the project, it will cost €4 billion and I hope it will generate approximately 30,000 high quality jobs. That is not a project which can be just tagged on, with the same people managing the airport and working on the project. Much project management expertise must be brought it.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

It must be entirely separate.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

That is the type of issue I will look at.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

I am glad we agree on something. Perhaps another point we would agree on is that the authority would address some other issues. I mentioned a pensioner earlier and his plight is a critical issue for elderly people. There is also a question of people coming off flights operated for Ryanair, for example, and walking across the apron in front of the terminal, which can be very dangerous. Concern has been expressed that elderly or confused people — I do not say that in a derogatory sense — could be affected by strange-looking vehicles coming at them sometimes. It is not good or safe enough and the authority should get its act together.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

When the chief executive, Declan Collier, was in before the Oireachtas transport committee, he indicated the ten-year €2 billion programme referred to by the Minister would leave the DAA with an overhang debt of possibly €1.2 billion. The Minister has indicated the new project will be totally ring-fenced. Would he clearly agree this must be the case, given there will still be such an overhang debt?

The Minister is clearly ploughing ahead with the separation of the three national airports. When will that happen and has there been an absolutely final decision on Cork and Shannon vis-À-vis Dublin?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

We have not made the decision because, as the Deputy knows, the board in Cork accepted the Cassells recommendations. Due to the fact that those recommendations are different from the original business plan, that plan was resubmitted to the Dublin Airport Authority. The latter will then submit the revised plan to me and the Minister for Finance. We have already agreed, in principle, that we are moving ahead but it will not be until that point that we will actually begin doing so. When that happens, a particular process must be undergone.

Commitments were given in respect of local consultations and those at a national level with ICTU. I have made a proposal to the unions regarding the form the process of consultations might take. That process will go ahead. As stated previously — I have no reason to change my view in this regard — provided the business plans are acceptable, it should take nine to 12 months before the three airports are fully separated.