Michael Finucane (Fine Gael)

This is one of the most interesting debates I have heard in the Seanad. I respect the frankness and honesty of every speaker. The Minister has heard many people express concerns on this matter. Like others from the mid-west region, I am aware of the genuine concerns of people in that area. The days of Shannon Development, as it was known, are numbered and this Bill will accelerate its decline. If one removes the asset base valued at €6 million a year and hands the industrial estate to a new airport authority, one reduces the power of Shannon Development. Understandably, this will remove housing stock from Clare County Council. Meanwhile, Enterprise Ireland is moving to Shannon but many of its Dublin-based staff are not anxious to go there. There will be a quid pro quo for staff at Shannon Development to merge into the new enterprise authority there. As a catalyst for regional development Shannon Development will end.

The Minister said he had strong support throughout the regions for the development of the Bill and the airports authority. He mentioned local and regional authorities, Shannon Development and consumer groups. Is the Minister being honest when he says that? The support is based on the promise in the 2002 programme for Government to give greater autonomy to Shannon and Cork Airports, without severing the umbilical chord to Aer Rianta. If he asked people in the area about that plan he would have support. There was a feeling in the Shannon area that Dublin had too much authority and control. The autonomy proposal would have been welcomed.

I have listened to eloquent contributions here and was deeply struck by that of Senator Quinn. Sometimes in Opposition one is seen as opposing everything the Government does, and an Independent can take an objective point of view. He considered this objectively, as a business man. The former Minister for Public Enterprise, Senator O'Rourke, cited the Minister saying on a radio programme, which I also heard, that he had a hunch. Department officials told people from the area who asked about it that the motivation for this Bill came from the Minister. What drives the Minister? Some 3% of the electorate vote for the Progressive Democrats, leaving 97% outside their fold. Is the true motivation for this legislation coming from the drive of the marketeers among the Progressive Democrats in their thrust towards privatisation and liberalisation? If we are honest we must say that is the reason.

I agree with Senator O'Rourke that April 2005 is the critical time for business plans to emerge for the airports. The Minister for Finance will look critically at the objective in breaking these into three components and ask what it will achieve and what financial dynamics will emerge from it. He is likely to veto it. If Deputy Brennan remains Minister for Transport he might receive his P45 from within. His hunch will have a dangerous domino effect.

Senator Ross criticised Aer Rianta harshly. Many semi-State organisations yield little revenue for the State. In the last 20 years Aer Rianta has contributed €400 million to the State by way of dividends. It has also contributed tax revenue through the PAYE and PRSI schemes. If it is effective why is it being broken up? It is difficult to see the justification for this. To use a rural expression, this is a pig in a poke. We are being asked to give way to a Dublin authority, which will replace the existing board, which remains in place until next April. Meanwhile, new boards in Shannon and Cork are preparing the business plans but the Dublin authority will continue to wield influence over the airports.

We will not even have the consolation that the chairmen of the new Cork and Shannon boards are involved in the board of the Dublin Airport authority until such time as the business is ceded to them, if ever. I do not believe it will happen. The Minister has given assurances that there will be no privatisation. He would have rocks in his head if he were to come in and gave any hint of privatisation. He is going so far in this legislation that were he to use the word "privatisation" he might as well leave the Chamber.

I hope the Minister for Finance will bring sanity to this debate when it comes down to the economic issues. His officials will consider it very critically. I hope the aviation officials in the Department of Transport will be able to give credible reasons for three separate entities. Those of us in the Shannon area favour autonomy and more control but that could be given under the umbrella of Aer Rianta and we could have representation on the board and a stronger presence than in the past.

Aer Rianta took the initiative to develop an international business many years ago when it saw the mail order business coming to an end. It sought to innovate and to establish a new track record. It is only right that we should give praise where it is due. Aer Rianta succeeded in establishing itself as an international leader in the field. It has shareholdings in other regional airports such as Birmingham, Dusseldorf and Hamburg, which have far greater populations. It must be doing something well if it can take a percentage holding in those airports.

I am extremely concerned about the future, as are many people in my area. I remind the Minister of a letter sent by Limerick Chamber of Commerce to 750 business people. The dilution of Shannon Development's functions came in for a great deal of criticism and I believe such a view is justified as Shannon Development will be dramatically changed. So much for regional development. The thin edge of the wedge will come next April when Shannon Airport has to operate as a stand-alone entity without the support of Dublin. A ten year plan estimates that capital expenditure for the airport will cost €75 million. Senator White said she has received assurances that the new chairman would expand the business from 2 million passengers to 4 million passengers.

It appears that the aviation regulator will have control over charges in Dublin Airport but he will not have control over the charges in either Cork or Shannon airports. By definition, that gives scope to the new airport authority in Shannon to set new charges. We all know the type of fuss created in the past by Michael O'Leary of Ryanair over airport charges.