Timmy Dooley (Fianna Fail)

I join with my colleague Senator Browne in welcoming the Minister to the House to discuss this legislation which, to judge by the discussion this morning and much of the discussion that has taken place in the Dáil and in the media over the last number of weeks, is important and controversial. The Minister is well aware of the local, regional and national implications and he has taken these into consideration in his approach to this legislation.

The biggest issue associated with this legislation is its potential positive effect on the tourism industry and business communities throughout the country. Ireland, as an island nation, is dependent on air access and the airports are critical elements of infrastructure in the provision of access from the point of view of both tourism and business. This is clearly the case in the Shannon region in terms of the development of business there.

The legislation is somewhat complex and technical; the Minister addressed this in his introductory remarks. It is set against a background of proposed changes in the aviation sector overall. These proposed changes provide some of the greatest uncertainty for tourism and business in the region. The open skies policy, which is currently under discussion between the Minister and his EU colleagues, together with his counterpart in the USA, has created considerable concerns for the region. The downside of this is that up to 50% of the business of the region is dependent on Shannon.

Aer Lingus is another issue about which we are concerned in the region. Recent cost cuts have been of particular concern, along with the potential job losses that have been discussed by the directors and the management of Aer Lingus. We will address this issue in the future and I know the Minister is committed to dealing with it. However, it is important that we take into account the national interest.

The Bill was introduced as the result of a commitment which the Government gave some time ago in An Agreed Programme for Government, which was published after the last election. There was a commitment to provide autonomy to the regional airports. That is still of the greatest importance and the Bill sets about doing that. It ensures the airports in Shannon and Cork will be provided with the necessary functions, capabilities and skills, along with management personnel and directors, for them to get on with the work of developing business in the region. The commitment given by the Government was silent in terms of the mechanism by which this would be achieved.

The legislation sets out clearly the mechanisms that will be used to give autonomy to the regional airports. It sets about dissolving Aer Rianta and setting up three independent companies. The Minister is well aware, based on the discussions I have had with him over the last few months and since he first set about drafting this legislation, that I am not overly excited about this approach. I would have preferred to see the retention of a restructured Aer Rianta working in conjunction with three separate boards for each of the three airports. This would result in a family-type approach. It was the Minister's decision and that of the Government to take the other route. It is not one with which I necessarily agree but I must accept it.

The Minister's decision was based on the advice available to him and the Government and I have no doubt that he bore in mind the necessity of ensuring that the regions are developed along the lines set out in the Government's strategies. I have discovered in the course of a number of helpful discussions with the Minister and his officials that he believes completely and utterly in the approach he has taken. While we do not necessarily agree on these matters, he is the Minister and he made the decision, from his perspective, for all the right reasons.

It is important that the airports remain in State ownership. The Minister has addressed this issue, which is welcome. Over the last number of years we have come to know some of the issues associated with the privatisation of State companies. When Eircom was privatised we all had great hopes for the development of that business. Unfortunately, the future of the company was put in jeopardy because of the lack of investment in its infrastructure. That is why it is particularly welcome news that the State airports will remain in State ownership so that we can ensure the infrastructure is maintained in a way that allows for its future development. Lessons have obviously been learned from the disastrous effects of the privatisation of Eircom.

There has been much talk about business plans. Some people have a false hope that the business plans will not be prepared, but quite a number have been prepared, which the Minister has used as best he can to ensure he is putting in place a functional operation. There were also some negative comments in the media recently which seemed to suggest that many workers were pushing for privatisation and that is the reason they are going against this approach. That is very unfair to the workers and their directors who have played such an important role in the development of Aer Rianta. They have been misinterpreted.

We have dealt with the issue of whether this is the approach to take in terms of restructuring, but I have a number of concerns about the Bill which I have mentioned to the Minister and his officials in the past. As Senator Browne pointed out, the legislation provides that Dublin Airport Authority will become a super-authority with the Shannon and Cork authorities acting as subsidiaries. I ask the Minister to provide for some level of representation for members of the boards of Cork and Shannon Airports at board meetings and discussions so that the interests of the two subsidiaries can be recognised from a Dublin perspective for the intervening nine-month period until the date at which the two companies are set firmly on their own courses. It is a considerable concern in the mid-west and Cork regions that the Dublin Airport authority will continue to dominate. The current view in the mid-west region is that management at Shannon has no capacity to effect its decisions, but must depend on Dublin or Aer Rianta, which has a Dublin focus, to deliver on most of its needs. We would like to see this discontinued. Obviously, this will happen when full devolution takes place. However, in the intervening period there is a concern that if the devolution does not take place on 30 April, as outlined by the Minister, or is delayed for any reason, we will be left in a situation where we continue to be subservient to a Dublin agenda and focus. This would not be good for either of the potential groups.

There is also concern, particularly in the mid-west and Shannon region, about the borrowing limit set in the legislation. Cork, as the Minister knows, has been identified for a borrowing capacity up to €100 million whereas Shannon has only been recognised for a capacity of €20 million. It is unfortunate that this is prescribed in the legislation. I hope the Minister can provide some comfort in terms of the capacity to deal with this, if the need arises, at a later stage. Perhaps he will confirm he can provide the capacity to effect such a change through a ministerial order or otherwise in his closing remarks.

The new authority in Shannon will carry particular burdens and requirements. All of us here and union representation recognise that a significant amount of restructuring will be necessary in Shannon and Cork, particularly Shannon. If there is to be some kind of voluntary redundancy programme, the workers who wish to avail of it must be properly remunerated and taken care of through proper packages. It will be necessary to have access to funding to ensure this but it is not clear where that funding will come from, notwithstanding the Minister's remarks about the property of Shannon Development. It must be recognised that the airport may need to borrow to a greater extent.

The Minister mentioned that the Bill affords certain protection to workers through section 12 which is helpful. Many of us discussed with the Minister in recent months the need to ensure that terms and conditions, as set out in previous contracts of employment, transfer wholly and completely from Aer Rianta to the relevant authorities. This will engender confidence in workers that they are, and will continue to be, protected in State employment. This protection is welcome and must be delivered on. Pension entitlements must also be put in place or retained which, returning to my previous point, means we must ensure sufficient funds are available to deal with any redundancies.

While I am not in favour of the mechanism by which the Government proposes to achieve autonomy, we must be careful about how we talk down a region or an airport. Both Shannon and Cork have tremendous potential to face the challenges set in this legislation. The legislation will put in place a mechanism whereby both Shannon and Cork can pursue business they could not pursue previously because of the dominant effect of the manner in which Aer Rianta managed its business. This is not a criticism of Aer Rianta but a comment on the structure. There is greater potential for Shannon and Cork to pursue business in a more unregulated environment.

Having spoken to many of the workers, worker directors and members of the designate boards — in Shannon more so than Cork — I know there is huge enthusiasm to ensure the decisions the Minister takes work effectively. These people show tremendous commitment and regard for the work that must be done. They recognise there will be a level of insecurity for weeks or months ahead and for a period of time after the ultimate act takes place on 30 May 2005. I am confident, based on the calibre of the people appointed by the Minister to the board and the workers, that this will get the greatest chance possible and that it will ensure the long-term future and viability of Cork and Shannon Airports.

Recognising that we will not have the safeguards we would have liked, safeguards that would accrue from an umbrella organisation or parent group with access to the funds of all three airports so that if one performed less well than the others we would have the capacity to provide subvention year on year, it is important for the Minister to redress some of the infrastructural deficits which exist in the region. The Minister has been proactive in this area and has made various statements on his visits to the mid-west region, particularly on the matter of the fourth river crossing in Limerick and the link between Limerick and Galway. He is anxious to ensure that we have critical access to the airport from that Galway-Ennis-Limerick road, which is welcome. If the Minister can expedite these projects, it will ensure Shannon has access to a wider territory which will provide greater viability. As we know, the population of the region is relatively small, therefore, it is important to provide the best road network and access possible.

It is also important to include a rail link. I congratulate the Minister on the success to date of Luas which has probably surpassed the expectations of many cynics, in terms of its ability to carry particular numbers of passengers.