Timmy Dooley (Clare, Fianna Fail)
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4. To ask the Minister for Transport, Tourism and Sport his reasons for directing the Commission for Aviation Regulation with regard to airport charges at Dublin Airport Authority; the capital investment plans proposed by the DAA; the latest developments with regard to solving the pensions crisis at the DAA; and if he will make a statement on the matter. [36861/14]

Timmy Dooley (Clare, Fianna Fail)
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On 15 September, the Minister issued a directive to the aviation regulator on the levying of charges at Dublin Airport. Two days later, he received a communication from Ryanair which sought to challenge the Minister’s capacity and entitlement to issue such a direction. Will he outline his reasoning behind the issuing of this communication?

Paschal Donohoe (Dublin Central, Fine Gael)
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My direction to the Commission for Aviation Regulation was issued in response to statements made by the commission in its draft determination that it had not received any directions or policy statement notifications by or on behalf of the Government.Accordingly, it was necessary for me to formally clarify that ministerial directions issued previously to the commission remain in place.It is also important that the commission takes on board current government policy. I confirmed to it that the draft national aviation policy, currently being finalised, is to be considered as a statement of present policy. Essentially, this is to ensure the new aviation commissioner is fully cognisant of the Government’s plans for Dublin airport in delivering the overall objectives for the sector and for the wider economy.

The direction I issued is very general in nature, confirming the status of Government policy and the need to protect the financial viability of Dublin Airport in order to implement that policy. However, it is within the commission’s discretion to decide how that is to be accommodated in the final determination. The capital investment plans proposed by the DAA are an operational matter for it in accordance with its statutory responsibilities.

Additional information not given on the floor of the House

Resolution of the funding difficulties in the IASS is primarily a matter for the trustees, the companies participating in the scheme, the scheme members and the Pensions Authority. The process currently under way involves all of these stakeholders. I understand that the trustee and the principal employers have recently issued documents in respect of the proposed changes in pension arrangements. These communications mark the commencement of the formal consultation process which the trustee is required by the Pensions Act 1990 to undertake in respect of the reduction in benefits that it is proposing. Each member will also shortly receive a personalised illustration of future pension benefits that it is proposing. The target date for implementation of the proposals remains 31 December 2014.

Huge efforts have been put in by all concerned over many years in an attempt to resolve the scheme's funding problems. A set of proposals has now been put forward which offer the best chance to resolve the long-standing problems of the scheme and give the members certainty about their future pension entitlements. I urge all concerned to accept them.

Timmy Dooley (Clare, Fianna Fail)
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I understand the notion of the Government setting out a broad aviation policy to apply to all airports in the State. A regulator is needed in a sector where there is no effective competition. Accordingly, the regulator adjudges and makes determinations to ensure a balance between the big and the small. I cannot understand, therefore, why the Minister or his Department would have found it necessary to issue a direction, a communication or a policy statement that got into the minute detail of the operational plans of one particular airport. I believe that is an overreaching of the Minister's and his Department’s powers. It is not just Ryanair, as Aer Lingus has indicated its concerns about the Government’s involvement in the day-to-day operations of Dublin Airport.

Will the Minister explain further why the Government wants to get involved in the minutiae of the operations of one particular airport rather than the sector in general, an area in which I believe the Government, of course, has a role in setting a broad framework?

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy needs to make up his mind about me. On the one hand, he said I overstepped the mark when I got involved in the Irish Rail dispute, despite my recognising that there are industrial relations mechanisms in place which I must respect and allow to do their work. Now, on this matter, he claims I am getting too involved when I am acting inside the legal scope and parameters available to me.

For the benefit of the record of the House, in the letter in question I referred to the role of Dublin Airport as an international gateway for Ireland, the desirability of terminal and runway facilities to promote direct international air links, and the sustainable operation of the airport on a commercial basis without recourse to Exchequer funding or an equity injection by the State. These objectives are laid out in our draft aviation policy. My ability to do that is recognised under section 10 of the Aviation Regulation Act 2001.

Timmy Dooley (Clare, Fianna Fail)
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In case the Minister was confused by my request and thought that one did not match with the other, my suggestion on the strike at Iarnród Éireann was that he needed to get on the record much earlier on providing subvention and increasing it in line with growth in the economy in accordance with demands. That is the Minister’s role and all that I suggested he do. I did not expect him to go to the Labour Relations Commission to resolve the issues. There are individuals in place to do that, but the Minister needed to participate in it for quite some time. The former Minister did the same in the past. In fairness to him, he put his hands in his pockets and commented from the sideline.

As there is no direct subvention from the State to the airport sector, I thought it was inappropriate for the Minister to involve himself at a time when the DAA is challenging the aviation regulator on the amount of the charge it can levy and setting out its own stall without necessarily living within the envelope provided to it. Taken in tandem with the Minister’s communication, it can only be seen as undue interference. Ryanair, its legal advisers and Aer Lingus clearly believe that to be the case, which is regrettable.

The Minister will also be aware that Aer Lingus believes that an increase in charges in line with his suggested policy may actually kill off the benefits created by the Government’s decision to axe the €3 travel tax. That is a direct statement from Aer Lingus and one which should give concern to all who have seen the upturn in tourism over the past several years, which has benefitted the State and the economy in general.

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy states that I should intervene in one area but not in another. The guiding principle I have is the legislation. I must act firmly within it and recognise and respect the structures and bodies that exist.

In the last correspondence I had with Ryanair, it subsequently wrote to me interpreting the directions I issued as “pointless” and having no impact on the CAR’s draft determination. I am a child of Ryanair. When I moved over to the United Kingdom first, the cost of flying home to see my family and friends was prohibitive. I understand the positive effect and benefit that it brought to our air travel sector.

My duty, though, is to look at what the policy objectives are for Dublin Airport and to make the right decision in terms of the powers that are available to me, which I have done. That is the spirit within which I have acted at all times. As I stated, the direction that I issued set out clear objectives to the Commission on Aviation Regulation while recognising totally its independence and discretion to implement them.