Séamus Brennan (Dublin South, Fianna Fail)

Amendments Nos. 6 and 7 relate to section 5(3) and seek to provide that both Ministers must be satisfied as to sustainable viability and the viability of the three airports, as well as operational and financial readiness prior to the making of orders for Shannon and Cork appointed days. It is a matter for the new airport boards to draw up business plans and marketing strategies for their airports which will ensure their sustainability, viability and growth in the future. The directors of each of the new authorities have a fiduciary duty to ensure the viable operation of their companies. The Ministers for Transport and Finance, as provided for in section 5(3), must be satisfied as to the general state of operational and financial readiness for vesting of assets in the new Shannon and Cork airport authorities, and those orders must go before the Dáil before any assets transfer.

In response to Senator McDowell's query about the current situation, the financial advice available to the Department makes it clear that the level of reserves in Aer Rianta would not permit the dividing out of Shannon or Cork Airports tomorrow morning. The reserves are not large enough for that. I am reluctant to put figures on it but have seen broad figures of €70 million or €80 million for Shannon and maybe €120 million or €150 million for Cork but they are ball-park figures and could be very wide of the mark. Therefore, the reserves would not be large enough to make it possible to distribute the airports as dividends under company legislation.

The board of the Dublin authority has several options. It can seek to make extra profits by sweating the assets, getting more business, building up the revenue reserves in that way, which will take some time, or it can move more quickly and decide to make some capital gains which would also build up the reserves. It could do that by disposing of some international assets or receiving a fairly long overdue dividend from Aer Rianta International to Aer Rianta or the Dublin Airport authority. That due dividend could help to build up the reserves which would allow us to trigger the Shannon and Cork dividing out days earlier.

According to available estimates, and regardless of the arrangement we made with the trade union movement about 30 April, it would take six to eight months before the reserves were sufficient for Shannon's assets to be divided out. In the case of Cork because of the terminal it could take up to twice that time. That is the best description I can give of the mechanism in place. The trade unions asked for the April date and I was happy to agree to it but it is also our best estimate of how soon we could transfer assets. One is not allowed to transfer assets from a plc unless one has reserves to cover them. That provides the time and space in which to work out many of the issues, even if we never had the other negotiations about trigger dates and agreements of Ministers and business plans and the other important elements. Current company law constrains us within this time period. I examined whether that company law could be amended but it was clear that EU directives do not permit that. That is the best explanation I can give of how it works and the numbers involved.