Dáil debates

Thursday, 2 April 2009

4:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 7: To ask the Minister for Transport the cost incurred in implementing the decision to separate the State airports before the decision was taken to postpone this separation; and if he will make a statement on the matter. [13846/09]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Last December, I announced the deferral until 2011 of a decision on the separation of the three State airports under the State Airports Act 2004, given the difficulties in the aviation market. Up to that time, the boards of Cork and Shannon airports were required to finalise business plans for eventual separation for approval by both the Ministers for Transport and Finance. This necessitated the procurement of advice from consultants at a cost of €334,000 on the financial and operational readiness of the airports for separation. This advice related to an assessment of the financial and other conditions necessary to facilitate separation, the evaluation of business plans and the resolution of certain issues identified in the business planning process. Professional advice was necessary to enable me to make an informed decision regarding the separation.

The two major elements comprised work undertaken by PricewaterhouseCoopers at a cost of €292,000 on aspects of State airport business planning and additional work, costing €42,000, undertaken by Mr. Peter Cassells that mainly dealt with the treatment of Cork Airport's debt in the context of separation.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I presume that the airports incurred other costs. Could the Minister request the figure, which is the thrust of the question? I accept that money has been invested, but the Act was passed in 2004 and we will wait until 2011 until it is acted on. What value for money will we receive as a result of the Government not proceeding with the implementation of the Act?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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I will get the information for the Deputy. I do not have it to hand, but I will request it from the airports.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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That is grand.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Regarding the second part of the Deputy's question, I agreed to the deferral of the separation following a request from the three airport authorities. They believed that separating at this time would be serious, an assessment with which I agreed. Had we gone ahead with it in the current climate, the costs involved would have been more serious.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Labour Party believes that serious costs would have been involved in any climate. Is it not time to abandon this crazy plan in the 2004 legislation and to restore Aer Rianta so that a proper national company can run the three airports? The Dublin Airport Authority, DAA, being in charge of some aspects of Cork and Shannon airports is ridiculous. Let us have Aer Rianta back.

What is the current debt of Dublin Airport and how will it be met? What is the current debt of Cork Airport and how will it be met? What is the current debt of Shannon Airport and how will it be met?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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I do not have that information to hand, but I will try to get it for the Deputy if he tables a parliamentary question. If the terminal 2 and runway developments at Dublin Airport had gone ahead during the height of the building boom, the debt would have reached approximately €1.2 billion. Obviously, it would not reach that high now.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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That is right.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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The debt is financed in a simple and straightforward manner. It is financed by income to the DAA from all of its air and terminal activities. I will get the specific details on the debts.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I understand that the airports were not split up because of their disagreement on which should take accountability for the debt at, for example, Cork Airport. There was a row between Dublin and Cork as to how much the latter would pay.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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As a question Deputy.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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The principle of the Act was to make the airports separate with their own business plans so that they could develop independently and grow stronger. Since the separation will not occur, we wasted money and the time of the Oireachtas on the legislation.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I am not sure that was a question. I will allow both Deputies to make their points.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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How much has been spent on the boards of Cork and Shannon airports since the 2004 legislation was implemented? How much has been spent on this madness in the past four or five years?

What is the agreed debt level with which Cork Airport has been saddled? The commercial representatives of Cork, such as its chamber of commerce, were very upset when €120 million to €130 million was landed on top of them for their new terminal, rather than being supported by the entire nation.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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I do not accept Deputy Broughan's premise, which is the opposite to that of Deputy O'Dowd, that the idea of the separation of the airports was madness or anything like it. It is easy for Deputy Broughan, whose constituency is close to Dublin Airport, to make such statements but people in Cork and in Shannon——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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I support all the airports.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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——had a distinct feeling that Aer Rianta and the Dublin Airport Authority — I do not comment on whether such a perception was true——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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They did not do what the Minister did to Shannon.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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They had the distinct impression that Aer Rianta and its successor——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Has the Minister forgotten something about Shannon?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Allow the Minister to reply.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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He forgot that he was informed about Shannon

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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——were completely Dublin-centred and were initiating and following policies that suited Dublin Airport, rather than all three airports. There was a strong perception to that effect——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Why did the Minister not move it to Cork?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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——on which I will not comment one way or the other.

Agreement had been reached. Part of Mr. Peter Cassells's remit regarding Cork was to come forward with proposals for a final resolution of the discussions regarding debt levels for Cork. My recollection is the net debt Cork Airport would be obliged to meet was just under €100 million.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Fine Gael)
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Question 8: To ask the Minister for Transport the continency plan in existence in the event of wide-scale strikes in major airports here; the contact he has had with the Dublin Airport Authority and the unions in order to avoid wide-scale disruptive actions at airports; and if he will make a statement on the matter. [13759/09]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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The Dublin Airport Authority, DAA, has statutory responsibility to manage, operate and develop Dublin, Cork and Shannon airports and, as such, the preparation of a contingency plan in the event of a strike is a matter for the DAA.

In fulfilling its remit, the DAA seeks to ensure that the maintenance of continuity of service across the wide range of services it provides to airlines and passengers. I understand the DAA has strategies, policies and contingency plans to deal with unforeseen events and managing crisis situations, including those situations where service is disrupted. A key aim of the DAA is to have systems that reduce the potential for disruption in the first instance and, where the disruption occurs, to manage the safety and security of passengers and airport employees.

The risk of disruption due to industrial action by any grouping of its core staff can be minimised by a willingness to engage with and use the industrial relations machinery of the State when matters of dispute arise. In this regard, I am informed the DAA has a registered agreement with the Labour Court that provides for a no strike clause in respect of potential industrial action by the fire and police emergency services during the lifetime of the agreement. Issues concerning the scope or alteration of the agreement are resolved through the normal third party mechanisms and, if necessary, through binding recommendation of the Labour Court.

I am satisfied that both DAA management and unions are engaged in talks to resolve the outstanding labour relation issues under the auspices of the Labour Relations Commission and, consequently, the threat of closure of the airports on 2 April has been withdrawn.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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While I thank the Minister for his response, I suggest the key issue in this regard is a no strike clause for everyone who is involved in critical transport infrastructure, such as airports, and that this is where Government policy should rest. The aim should be to get a no strike clause to protect the public and the economy in respect of critical infrastructure such as airports. I stress that I greatly welcome the decision of the unions' leadership not to hold that strike. However, it had a significant impact because it was threatened and, consequently, people cancelled business deals and transport plans. It is not good enough, in the 21st century, that anyone can threaten such a strike at such a critical period. Basically, it constitutes economic sabotage and we must opt for no strike clauses for those involved in critical transport infrastructure such as the airports. I seek the Minister's views in this regard.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Like the Deputy, I welcome that this strike did not go ahead. However, I also accept his comments to the effect that even the threat of an industrial dispute that might close the airport has a disruptive effect. It causes both uncertainty and people to change plans and perhaps to make alternative arrangements. It is not something that I like to observe and I agree with the Deputy in this regard.

As I noted in my reply, a no strike clause is in operation in respect of fire and police emergency services during the lifetime of the existing agreement with the DAA. I would welcome its extension across the entire range of essential services. In this day and age, both management and unions should be able to resolve their difficulties through the normal industrial relations mechanisms of the State. I encourage them to so do and encourage the trade union movement to engage with management to try to ensure that this happens.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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First, I wish to comment on the great dignity shown by workers in Dublin Airport across a number of companies. Recently, for example, Aer Lingus workers negotiated a complete downgrading of their jobs and conditions to help the company to survive and they did so in a most dignified and responsible manner. The national leadership acted similarly in respect of the Dublin Airport Authority workers and above all, in the past five or six weeks, the SR Technics workers have shown enormous dignity and courage. They have tried, in a dignified, calm and responsible way, to preserve their jobs and get their basic entitlements. This is the reality and not the ráiméis one hears in this House from Fine Gael or the talk from Ryanair about bringing in the Army. The only person in Ryanair who gets to negotiate his own salary is the chief executive himself, who has the best of professional advice.

My understanding is that, as I speak, the management buy-out team at SR Technics is negotiating with IDA Ireland, under the auspices of the Department of Enterprise, Trade and Employment, to try to preserve the jobs at the company and to ensure that 600 skilled men and women will not be on the streets and signing on tomorrow morning. I have to hand a recent e-mail sent to the Labour Party leader from the representatives of the SR Technics workers to the effect that they desperately need time from the SR Technics management team in Zurich, Abu Dhabi and Dubai to allow them to put in place the structures that will retain the vast bulk of those jobs. Can the Minister offer his support in this regard this evening?

Earlier today, I asked the Taoiseach, Deputy Brian Cowen, and the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Mary Coughlan, whether the Tánaiste would contact Sheikh Mohammed Al-Maktoum, who is the Emir of Dubai and the Prime Minister of the United Arab Emirates. As the Leas-Cheann Comhairle may be aware, he owns 100% of SR Technics in Dublin, Zurich, Stansted and the Middle East. I have asked our leader to talk to the owner of SR Technics to ask him——

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I have given the Deputy some latitude——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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As a final point, I understand that Sheikh Mohammed and the United Arab Emirates consider themselves to be friends of Ireland and that they would be prepared to allow the kind of time that is needed to avoid the scenario in which valiant and highly skilled workers, who are among the most skilled in——

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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We have had a question on this matter and I do not want——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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——Ireland, will be walking the streets tomorrow. As I stated, they have behaved in a most dignified and responsible manner. Were the Minister to do this, I would appreciate his initiative.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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While I am anxious to give some latitude, I must now call on the Minister. This is well beyond the scope of Question No. 8, with which we are dealing.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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While I will try to remain within Standing Orders in this regard, the Deputy can be assured that anything the Government can do, through the Tánaiste and Minister for Enterprise, Trade and Employment in respect of SR Technics, will be done.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Does that include contacting the owners, which the Government has not done heretofore?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Last Friday, a deputation, which I was unable to meet, asked for a postponement of the sale of some tooling equipment and so on. My Department immediately passed on that request to the Department of Enterprise, Trade and Employment and the sale subsequently was deferred. Anything the Government can do and that is within its power certainly will be done to try to ensure that as many jobs as possible are preserved. That is what is happening in respect of the agencies such as the IDA and so on. If a viable alternative exists, the Government does not wish to see such highly skilled workers losing their jobs. We will do everything we can to avoid that situation arising.