Dan Neville (Limerick West, Fine Gael)
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Question 39: To ask the Minister for Transport the discussions he has had with the Dublin Airport Authority's new chief operating officer on his plans for the company and its end of year 2009 results; and if he will make a statement on the matter. [26707/10]

Noel Dempsey (Meath West, Fianna Fail)
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As indicated to the Deputy in my reply to PQ 17984/10 of 5 May 2010, the annual report and accounts of the Dublin Airport Authority for 2009 were published on 27 April and were lodged in the Library of the Houses of the Oireachtas the same day.

I noted that falling passenger numbers caused by the recession led to the Dublin Airport Authority's gross profit reducing by 10% on the previous year. The Dublin Airport Authority's group profit in 2009, excluding exceptional items, was €38 million as compared to €78 million in 2008.

Despite the 2009 results, I welcome the continuing efforts of the company to achieve efficiencies in the current difficult market conditions. The success of the company's cost recovery programme reflects well on the contribution that employees can make to the Dublin Airport Authority's financial performance and to enhancing its ability to operate the airports more efficiently in the future.

The recent appointment of a chief operating officer is an organisational matter for the Dublin Airport Authority and I have no function in the matter.

In line with normal shareholder contacts, I met with the board and management of the company on 14 May last and discussed with them strategic issues and the company's plans for the future.

Fergus O'Dowd (Louth, Fine Gael)
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The Dublin Airport Authority lost €13 million last year. The debt it has now is closer to €1 billion, which is a great deal of money. The company paid its chief executive officer €638,500 in 2009. It appears many people are very well paid in this company. Sixteen directors were paid €187,000 in fees. The chairman will get almost €20,000 per annum. The point is that these people are very well paid but they are not producing the goods. They are losing money and they need a radical shake-up. The approach of the Government and the Minister is not challenging them sufficiently. I am aware these are difficult times for the airport authority but it is clear that while the executives are very well paid, they are not producing the goods on the ground.

Noel Dempsey (Meath West, Fianna Fail)
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I would not agree with the Deputy. The group operating profit before exceptional items was €62.7 million. When the exceptional items are included, it recorded a loss of €13 million. The two exceptional items were in respect of the DAA's cost recovery programme. It spent money on trying to ensure improvements were made to all aspects of the operation of the airport. That cost approximately €46.5 million. There was a charge of €11.3 million on an asset impairment. The first year it made a loss after exceptional items, and it would be unfair to say the Dublin Airport Authority is not doing a good job. We are in the throes of a major problem internationally in the aviation sector. The number of passengers passing through the airport fell significantly. That is not a direct fault of the Dublin Airport Authority but a direct result of the general economic position we are experiencing. It will have a sizeable debt. That is on the basis of providing top quality, top class infrastructure at the airport for passengers and customers generally. It is unfair to say that these people, some of whom are high profile and would not be making money on the basis of a €12,000 fee, are not doing their job.

Fergus O'Dowd (Louth, Fine Gael)
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A total of €638,500 is a lot of money.

Noel Dempsey (Meath West, Fianna Fail)
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It is €12,000 for each of the directors. The Deputy mentioned the directors were getting €187,000-----

Fergus O'Dowd (Louth, Fine Gael)
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I said the chairman was getting €20,000 per annum.

Noel Dempsey (Meath West, Fianna Fail)
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-----and from that point of view the criticism is not justified. The airport is well run. It has delivered on its projects. Terminal 2 will come in on schedule and within budget and will provide a fantastic facility for people arriving into this country.

Pat Breen (Clare, Fine Gael)
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The Minister acknowledged that in 2009 overall passenger traffic was down. At Shannon Airport it was down 23%, while in Europe and the UK it was down 13% and 7% respectively.

The Minister meanwhile has shelved plans for granting autonomy to Shannon Airport management until 2011. This is unacceptable for the airport's management as it is forced to work with one hand tied behind its back. In the past the airport performed well when management could make its own decisions, particularly in the time of Brendan O'Regan and Liam Skelly. However, a conflict of interest between the Dublin Airport Authority and Shannon Airport has arisen. For example, the Dublin Airport Authority would like to have the Lynxs cargo company locate in Dublin when Shannon is vying for it too.

Does the Minister plan to address this structural deficit or will he continue to leave Shannon Airport management in limbo? It is to the detriment of the airport that its management cannot make its own decisions.

Noel Dempsey (Meath West, Fianna Fail)
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The Deputy is incorrect in claiming I shelved plans for the separation of Shannon and Cork Airports from the Dublin Airport Authority. Due to the severe economic downturn and its effects on the international aviation industry, the chairs, boards and management of the various airports requested me to postpone the planned separation of the Dublin, Cork and Shannon Airports from the one authority. They believed it would not be prudent considering the economic positions in which they found themselves.

Next year, it is intended to examine the various possibilities for separation. I will listen carefully to the board and management of Shannon Airport if they want it to be separated from the Dublin Airport Authority to run their own affairs. Their decision will carry much weight with me, so long as everyone knows the consequences of such a move.

Pat Breen (Clare, Fine Gael)
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My question was about the management structure and having its own autonomy.

Noel Dempsey (Meath West, Fianna Fail)
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The Deputy cannot have it both ways.

Pat Breen (Clare, Fine Gael)
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Shannon management is operating with one hand tied behind its back as it is the Dublin Airport Authority that makes all the decisions for it.

Séamus Kirk (Louth, Ceann Comhairle)
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Deputy Breen, allow the Minister to conclude without interruption.

Noel Dempsey (Meath West, Fianna Fail)
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The way to making their own decisions is to become an independent company. I am agnostic on this matter and have listened carefully to all sides in the debate. However, once an airport decides to go independent, it will no longer have the protection of the larger organisation. It will be on its own. If that is the final decision-----

Pat Breen (Clare, Fine Gael)
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Does the Minister believe Shannon Airport can survive on its own?

Noel Dempsey (Meath West, Fianna Fail)
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As long as people know the ground rules in this matter. I do not know too many people involved in Shannon Airport or the wider Shannon region who believe the airport could have survived the current downturn in the aviation industry.

Pat Breen (Clare, Fine Gael)
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That is correct.

Noel Dempsey (Meath West, Fianna Fail)
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The chair, management and board of the airport made the right decision requesting a deferral of the autonomy plans during this downturn. If people change their minds, I will take their points on board.

Pat Breen (Clare, Fine Gael)
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The Minister misunderstood my question but I believe he knows where I am coming from. It is about Shannon Airport management making its own decisions without having to go back to the Dublin Airport Authority for approval. There is a conflict of interest when it comes to both airports trying to attract new investment projects reporting to the one authority.

Noel Dempsey (Meath West, Fianna Fail)
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I know exactly where the Deputy is coming from. Some people would like to have no responsibility and just access to the cash. I am not saying that applies to Shannon Airport management. However, a subsidiary company cannot be able to spend moneys belonging to its parent company unless it is prepared to take responsibility. The structure is not in place in the Dublin Airport Authority for this. If we do agree to separate the airports, it will mean Shannon becomes responsible for all of its decisions, generating its own income and ensuring its own survival.

Pat Breen (Clare, Fine Gael)
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These are difficult economic times.

Noel Dempsey (Meath West, Fianna Fail)
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That is why we made that decision but it may change next year.

The difficulty is that one cannot have a company which is part of a larger company making its own decisions while the larger body pays for it. It is getting the balance right that is important.

Next year, I would be open to the airports deciding to take the route of separation from the Dublin Airport Authority.

Tommy Broughan (Dublin North East, Labour)
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The Dublin Airport Authority's annual report states it has €640 million in cash-in-hand while it had over €800 million the year before.

Is the Minister aware that a lucrative licence for running the eight bars in Dublin Airport was issued by the authority without a tendering process? Is that appropriate for a State company?

Is he concerned the authority was involved in a property development company, Turckton Developments, with Liam Carroll's group, Dunloe Ewart, which has substantial liabilities to a building society of €34 million? Did the Minister approve of this or examine-----

Séamus Kirk (Louth, Ceann Comhairle)
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The Deputy may want to put down a separate parliamentary question to elicit this information.

Tommy Broughan (Dublin North East, Labour)
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Has the Minister discussed with the Dublin Airport Authority its whole approach to property development? While I commend it on its work on terminal 2, the fact it is involved in this development company, Turckton Developments, raises some concerns.

Mr. Declan Collier, chief executive officer at Dublin Airport Authority, will appear before the Oireachtas Joint Committee on Transport this afternoon. His overall remuneration package last year came to over €600,000 while his basic salary is €348,000. Does that accord with the guidelines rightly laid down by the Government on executives' salaries in semi-State bodies, given the overall national fiscal position?

Noel Dempsey (Meath West, Fianna Fail)
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The Deputy will appreciate I do not involve myself in the day-to-day operational matters of the authority. I am not aware it has broken any procurement laws or otherwise. If the authority wants to set up subsidiary companies, a general policy is in place that they cannot be a drain on the main company and must operate separately to it. It also cannot add to the costs of passenger travel, well supervised by the regulator. I am not aware the authority is in breach of any laws.