James Bannon (Longford-Westmeath, Fine Gael)
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Question 64: To ask the Minister for Transport his plans to develop the aviation industry here; and if he will make a statement on the matter. [46416/08]

Noel Dempsey (Meath West, Fianna Fail)
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Ireland's aviation policy, as set out in my Department's current statement of strategy, is to promote regular, safe, cost-effective and competitive air services linking the country with key business and tourism markets.

To this end, within the European Union, Ireland has consistently supported market liberalisation measures, which have, to date, served as the platform for the rapid expansion of aviation generally. We have also sought to influence the emerging EU and wider international framework for aviation to ensure that it continues to promote competition and innovation in the marketplace.

The introduction of the EU-US open skies agreement and the conclusion of a more liberal agreement on a bilateral basis with Canada illustrates our commitment to supporting liberalisation measures.

Our approach to the encouragement of air services is complemented by our policy on the development of airport infrastructure within the country. The main objective is to ensure that the three State airports have sufficient capacity to respond to the growth opportunities of a competitive airline sector and to provide vital international access. The opening of terminal 2 at Dublin Airport in early 2010 will allow Dublin Airport to comfortably handle up to 35 million passengers per year and will create a vibrant modern airport that will be an efficient gateway to the Ireland of the 21st century.

In addition, the six regional airports have a role to play in facilitating access to the regions. My Department provides financial support for airport development and operations as well as for PSO services connecting Kerry, Galway, Knock, Sligo, Donegal and Derry to Dublin.

Fergus O'Dowd (Louth, Fine Gael)
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Is it not a fact that the number of tourists from Britain has dropped significantly in the past year? The figure is down 17%. Is it not the case that the Minister's airport departure tax of €2 per passenger travelling to the United Kingdom will have an adverse impact on this decreasing number? Does the Minister not think he should do away with that tax? It is affecting profitability on routes for the main airlines and it affects people's pockets, particularly when their income is reducing.

Noel Dempsey (Meath West, Fianna Fail)
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I do not accept that. The airport departure tax is not in play at the moment and it cannot be causing the fall in tourist numbers.

Fergus O'Dowd (Louth, Fine Gael)
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It will. That is a facetious answer.

Noel Dempsey (Meath West, Fianna Fail)
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I could claim that the question is somewhat facetious if the Deputy talks about an airport tax when he asked about Irish aviation policy.

Fergus O'Dowd (Louth, Fine Gael)
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The Minister would not take my question.

Brendan Howlin (Wexford, Labour)
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The Deputy will allow the Minister to respond.

Noel Dempsey (Meath West, Fianna Fail)
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It has not had any effect on tourism numbers. I expect that passenger numbers will reduce as they are currently reducing. That has more to do with the international economic situation and the recession we now face. I do not accept for a minute that the airport tax will be the deciding factor as to whether people travel in and out of this country.

Pat Breen (Clare, Fine Gael)
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In the Minister's replies to questions put to him by the transport spokespersons, he mentioned aviation policy and Government policy in respect of maximum connectivity. Over the past few days we have had good news and bad news. In my own mid-west region we have seen 200 jobs announced for an American company in Ennis. The company is there because there is a daily direct transatlantic service which is very important. On the other hand, we have seen job losses because Heathrow was a very important hub of connectivity for the region. I know the Minister has had discussions with the airlines, particularly with Aer Lingus and Ryanair in recent days. Michael O'Leary mentioned that he would restore the Shannon-Heathrow slots in the event of his takeover bid proving successful.

The last time I questioned the Minister, I asked about the border customs protection facility and he told me he would make an announcement shortly, which he did two days later. Is the restoration of the Shannon-Heathrow service by Aer Lingus imminent and has the Minister had discussions with Aer Lingus in this regard? The news on the ground is that there may be an announcement before the end of the week. If there is, I hope the Minister will return to Shannon, make that announcement and act as Santa Claus for Christmas.

Noel Dempsey (Meath West, Fianna Fail)
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I do not think I would make a good Santa Claus. With regard to the Shannon-Heathrow route and the different meetings I have had with different representatives of Aer Lingus in the past 12 months, I have never failed to highlight that issue. I have also discussed it on a number of occasions with our own directors on the board of Aer Lingus to try to ensure that the link, which is important, is restored. Again, we are back to the same situation as before. At the end of the day, it is a commercial decision that Aer Lingus will have to make.

Pat Breen (Clare, Fine Gael)
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Does the Minister expect Aer Lingus to make a decision shortly?

Noel Dempsey (Meath West, Fianna Fail)
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I can only go by what was said in public some weeks back, when Dermot Mannion of Aer Lingus indicated at a meeting in Shannon that it was considering increasing the number of short haul flights. I can only hope.

Pat Breen (Clare, Fine Gael)
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The Minister knows more than that.

Tommy Broughan (Dublin North East, Labour)
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With regard to aviation policy, is it the Minister's intention to produce a Green Paper? One of the core issues of that policy is the State Airports Act 2004. Will that now be repealed having regard to the separation of Dublin, Cork and Shannon airports? There seems to be some row-back on this and a feeling that on economic grounds it should not proceed. What is the Minister's view?

On a related point regarding the investment we have made in the three national airports, is it not the case that the Ryanair company has been bitterly opposed to Terminal 2 at Dublin, the new facility at Cork and the additional facilities at Shannon? Do these issues concerning the past history of Ryanair concern the Minister given that the general plan in Dublin is for Aer Lingus to use Terminal 2?

Brendan Howlin (Wexford, Labour)
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That is a very broad question with many extra wings to it. I will allow Deputy O'Donnell to raise a brief supplementary question.

Kieran O'Donnell (Limerick East, Fine Gael)
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To follow on from what Deputy Breen has said, has the Minister sought a meeting with Dermot Mannion given the media speculation at the weekend with regard to the restoration of the Aer Lingus Shannon-Heathrow route? Will he seek a meeting with his directors on the board of Aer Lingus to ensure there is certainty on this and that we get a date as to when this vital connectivity for Shannon and the mid-west region, including Limerick, is restored?

Noel Dempsey (Meath West, Fianna Fail)
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There are no plans to repeal the State Airports Act. The state of play is that the business plans have been submitted, the DAA commentary on the business plans has been submitted and the two airports, Shannon and Cork, have also submitted letters to me stating their views of the proposal to have separation at this point in time. Both airports remain committed to the concept of separation. The three chairpersons and the chief executive of the Dublin Airport Authority are currently in discussions and I expect them to make contact with me over the next few days to try to finalise this particular matter.

With regard to the investment in airports, it is a fair portrayal of the situation to say that on most occasions every proposed investment in the airports, particularly Dublin Airport, has been opposed by Ryanair, which believes that the Dublin Airport Authority is gold-plating everything in regard to Terminal 2, Pier D and so on. I had the discussion with representatives of Ryanair not that long ago that Government would see the airports, particularly Dublin Airport because of its size——

Tommy Broughan (Dublin North East, Labour)
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And Cork and Shannon.

Noel Dempsey (Meath West, Fianna Fail)
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Particularly Dublin. They are the gateway to Ireland and are the first impression people get of Ireland. It is particularly important that we have good facilities and I am committed to that.

I have not sought any meeting with Dermot Mannion. He sought a meeting with me last week and I had discussions with him at that stage.

Kieran O'Donnell (Limerick East, Fine Gael)
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Did he tell the Minister anything with regard to the restoration of the route? The Minister should give us details.