Simon Coveney (Cork South Central, Fine Gael)
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Question 55: To ask the Minister for Transport if his attention has been drawn to the plan of the Spanish Government to part privatise their national airport authority and air traffic control in 13 airports; if he has given consideration to such an initiative regarding the Dublin Airport Authority; and if he will make a statement on the matter. [2288/11]

Noel Dempsey (Meath West, Fianna Fail)
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The Deputy will be aware that part of the terms of reference of the review group on State assets and liabilities, chaired by Mr. Colm McCarthy, is to consider the potential for asset disposals in the public sector, including commercial State bodies such as the Dublin Airport Authority. When that review has been completed, I will consider any recommendations with regard to the Dublin Airport Authority. I answered a question on this some time ago and generally indicated that I would think long and hard before I would favour privatisation.

Simon Coveney (Cork South Central, Fine Gael)
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I tabled this question to try to get an understanding of the Minister's thinking on how we can resolve a difficult situation whereby the Dublin Airport Authority, which controls and owns the three largest airports in Ireland, is heavily indebted to the tune of approximately €1.2 billion. The cost of servicing that debt means it is difficult for it to reduce airport charges sufficiently to attract new airlines and traffic through airports, which is needed because passenger numbers have dropped by some 29% in the past three years.

I hope the Minister will respond. This is not about privatisation or selling off assets. This question refers to what the Spanish Government is considering at present, which is to sell a minority stake in its State-owned airport operating company in order to raise capital to reduce the debt repayments that are required from that company. Is the Minister thinking along similar lines in an effort to bring down airport charges and drive up passenger numbers, which is ultimately what the economy needs?

Noel Dempsey (Meath West, Fianna Fail)
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To put the Deputy's comments in context, the airport charges at Dublin Airport are well below the average and, if I recall correctly, are probably one of the lowest sets of airport charges anywhere in Europe for an airport of its size. Therefore, I would not start from the premise that our airport charges are higher than elsewhere or that we are not in line with the rest of Europe. The reality is that we are much better placed than other countries.

I agree with the Deputy that the lower we can keep the charges, the better it will be for consumers. However, privatisation or part-privatisation of an asset such as the Dublin Airport Authority might cause its own difficulty. One would, quite rightly, have to put on one side of this equation the possibility that if the three airports were split up, there might - and it is only a maybe - be greater competition. It is difficult to prove it would be so, but that is certainly one side of the argument. However, the other side of the equation which must be taken into account is the question of whether, in selling or diluting the State's share in the airport, one would be in a position to secure the type of investment in infrastructure that is necessary, particularly, for example, investment in runways before they are needed in order to facilitate future expansion. There is a debate to be had in this regard, and that can take place as soon as the McCarthy report is made available.

Simon Coveney (Cork South Central, Fine Gael)
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In regard to airport charges, the Minister is comparing Dublin Airport to airports in other European capital cities, which is not necessarily comparing like with like. The vast majority of capital cities have both a conventional airport and a low-cost airport, whereas Dublin Airport facilitates both services. In the case of low-cost airports which are served by airlines such as EasyJet and Ryanair, there are much lower charges.

We have seen almost a 30% reduction in passenger numbers and, at the same time, a 45% increase in airport charges. That is the reality. We cannot continue to compensate for falling passenger numbers by increasing airport charges. We cannot continue to subsidise the operation of airports that no longer have sufficient passenger numbers to cover their running costs. It is in this context that I have asked the Minister on several occasions what the Government approach is to this problem. Is it to facilitate competition between airports and potentially facilitate competition between terminals in terms of the operation of the two terminals in Dublin Airport or is similar to what the Spanish Government is looking at, namely, to sell a minority stake in the overall company? Is to continue with Irish aviation policy as it is, even though it is failing us and resulting in continuing falling numbers?

Noel Dempsey (Meath West, Fianna Fail)
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The Deputy is incorrect in assuming that the reason for the fall-off in passenger numbers is the increase in airport charges. The reduction in passenger numbers, as is the case with CIE and other public transport companies, has more to do with general economic activity and the very severe hit we have taken in the context of the international recession. People are travelling less because they cannot afford it.

Simon Coveney (Cork South Central, Fine Gael)
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Passenger numbers have increased in every other European Union member state except for the United Kingdom.

Noel Dempsey (Meath West, Fianna Fail)
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With a 9% fall in economic activity last year, it is true that we have been more severely hit than other countries. I am not comparing airport charges at Dublin Airport to those at airports in large cities such as Paris; the figures to which I referred relate to capital city airports throughout Europe which are of comparable size, serve a similar population and so on. The reduction in passenger numbers is not down simply to airport charges. It may be a factor but only a minor one.