Martin Cullen (Waterford, Fianna Fail)

I am responding directly to an accusation that was levelled. Moreover, it is not the view of any member of the Government, irrespective of position, that this is a sustainable position. I wish to put on the record of this House that all within the Government are ad idem on the view that I have stated, that decisions on these matters are of the utmost importance and must be made shortly and with absolute clarity. That is my position and I have stated it consistently since I came to office six months ago.

It is also important to reflect, for those who suggest that nothing has happened in this area, that the break up and separation and the provision of independence and autonomy to the three key airports, namely, Dublin, Shannon and Cork, is significant and singularly important in the development of not only the airports themselves but of tourism and passenger numbers into this country. That took place in 2003. The Minister for Finance and I await and hope to see the completion of the airports' business plans shortly.

Parallel to that process, we are positioning ourselves to make a decision on a number of issues pertaining to aviation policy. These are my strongly-held views. I do not have an ideological view on this and it would be fundamentally flawed to take a view based on ideology alone on any particular issue. That approach would not deliver, no matter what side of the argument one might be on.

It is the policy of the Government to encourage as wide a range as possible of reliable, regular and competitive air services to and from Ireland. The central tenet of this policy is the belief that a strong, competitive and efficient network of air links is vitally important for developing our trade and tourism sectors, particularly having regard to our island status and peripheral location.

As Members are aware, passenger traffic through Dublin Airport is expected to grow from last year's level of over 17 million passengers to approximately 30 million by 2018, although I suspect the higher figure will be reached more rapidly than that. New infrastructure capacity and facilities, both airside and landside, will be needed to cater for this growth, including further terminal capacity.

Over the past decade, passenger traffic at Dublin Airport has more than doubled from 8 million passengers in 1995 to more than 17 million last year. This occurred in a relatively short timeframe. While the Dublin Airport Authority will continue to optimise the use of the existing terminal facilities in terms of growth, in the near term the time is fast approaching, indeed we have already reached it, when a decision must be made on the next tranche of terminal capacity so future growth at the airport will not be constrained. In this regard, the Dublin Airport Authority has already submitted a planning application for a second parallel runway to Fingal County Council.

In terms of access, inward investment, economic development and tourism generally, Dublin Airport is and will remain the metropolitan gateway to the State. Ireland's island status creates a greater dependancy for the country and a much greater requirement for adequate modern airport infrastructure, with associated air services, than for other European countries with significant land borders. It is also noteworthy that the national spatial strategy has acknowledged that the expansion of the level of air services from Dublin Airport to a wider range of destinations is essential in the interests of underpinning Ireland's future international competitiveness. Notwithstanding the welcome increase over recent years in traffic at Shannon and Cork airports and indeed at some of the smaller regional airports, Dublin Airport will remain crucial to the national economy as a vital strategic component of national infrastructure.

For this reason, there are two crucial issues guiding the overall consideration of how further terminal capacity will be provided at Dublin Airport. We must ensure the continued overall operational integrity and strategic development of Dublin Airport to meet the needs of current and future users of the airport, both airlines and passengers. Airlines are a serious customer of the airport, and are as important as passengers. It will also be necessary to ensure that additional terminal capacity is provided in good time to meet the growth in air traffic and that we do not allow new bottlenecks to develop in our strategic national transport infrastructure.

Subject to these two guiding principles, I will bring proposals to the Government very shortly concerning this matter. The Government's objective will be to ensure the provision of terminal capacity on an efficient, cost-effective basis.

Once the Government makes a decision regarding this matter, the detailed planning and implementation process will address the issue of the location of the next tranche of terminal capacity and all other relevant operational factors, such as general access and the management of traffic, both airside and landside, at the airport.

As I stated earlier, the Oireachtas passed the State Airports Act last year and pursuant to that Act, the new board of the Dublin Airport Authority took office on 1 October 2004. That new board brought together people of the highest calibre and expertise in business and aviation who have the commitment and the vision to address the challenges surrounding the delivery of enhanced infrastructure and facilities to meet projected growth at Dublin Airport.

The State Airports Act 2004 also changed the remit of the Commission for Aviation Regulation. The latter is now obliged to balance economic efficiency, the reasonable interests of existing and future users and to ensure the airport's financial sustainability in a way that would promote its long-term development.

The CAR is now well advanced in drawing up a new airport charges cap for Dublin Airport, which must be completed no later than 1 October 2005. The regulator has indicated that he will publish the draft determination on 6 May next. Under the legislation, the commission will then give an opportunity to interested parties to state their views on the draft determination before reaching a final view on the scope of the determination.

Regardless of who owns the infrastructure at the airport, there is a need to achieve a commercial return on investment. Terminal facilities and runways are costly and, ultimately, the users of the airport must pay for them. It is the job of the regulator to be satisfied that the commercial rate of return given to the airport authority is reasonable.

Arising from the existing comparatively low price cap at Dublin Airport, the DAA is acutely aware that it has to focus on its cost base and achieve efficiencies and show that capital expenditure is planned and carried out efficiently. To show that capital expenditure on infrastructure in planned efficiently and is responsive to user needs, the authority will continue to consult with stakeholders on the design and specification of future infrastructure facilities.

In recent years, the low-cost airline market has led to a dramatic increase in passenger numbers at the airport, accounting for over 50% of all traffic at present. This is a larger market share than many peer airports elsewhere. It is also important to point out that the charging regime at Dublin Airport is among the lowest of European airports. Somebody must be doing something right to be in that kind of sustainable position. The management and workforce must be doing something right. It is wrong to suggest that everything is going wrong at Dublin Airport. The mythical portrait of Dublin Airport painted by some people who have vested interests completely distorts many of the good things about the airport. I am not suggesting that it is run in the best and most cost-efficient way in its entirety. However, it is a long way from the manner in which it is presented by those who seek to undermine it.

The regulator will set the cost base on all of these issues, whether the airport is owned by a private sector operator or the public sector. Any private investor in any facility will look for a substantial return on his or her capital deployed. At the same time, the airport must continue to have the operational flexibility to cater efficiently for the requirements of the long haul and charter markets which would have different expectations about service level standards, particularly in terminal facilities. This challenge requires the airport authority to try to achieve stakeholder consensus on matters such as the use of air bridges and comfort requirements for the range of passenger categories, including families and older people, transiting passengers or passengers embarking on a transatlantic flights.

The challenge for the DAA is to continue to plan and develop the airport so the variety of its customers benefit from infrastructure service levels that strike the appropriate balance between cost effectiveness and comfort for those using the airport. As a policy maker, the State must decide on a future framework for the provision of terminal facilities at the airport that ensure that both the location and operation of such terminal capacity are in keeping with the optimum development of an efficient Dublin Airport. I expect to announce the Government's decision on that framework shortly.

I now wish to turn to aviation security matters. Security at our airports is paramount and is taken very seriously by this Government. We are committed to ensuring the highest standards of security at all our airports. Aviation security is a complex business. It comprises a range of technical, procedural and human measures designed to protect crew, passengers, ground personnel, aircraft and facilities of an airport against unlawful interference perpetrated on the ground or in flight. It involves layers of measures, some overt, some covert, but which taken together maximise the protection of civil aviation.

Our aviation security policy is based on the requirements set down by the European Union, the International Civil Aviation Organisation and the European Civil Aviation Conference. In accordance with these requirements, my Department has established a detailed framework and guidelines on the measures and procedures to be implemented by all of the entities involved in civil aviation security at the airports and other locations.

The terrorist events of September 2001 led to a major review of civil aviation security globally and to greater co-ordination and co-operation at that level. As anyone travelling by air since then will be well aware, the security regime at airports changed dramatically worldwide. In an EU context, a new regulation establishing common rules in the field of aviation security for member states was adopted. The guiding principle at all times of all the requirements and regulations is the security of passengers.

The new regulation has resulted in fundamental changes to aviation security involving the putting in place of new measures and procedures principally by airlines and airports to enhance and strengthen security arrangements. The requirements of the EU have been incorporated into my Department's national civil aviation security plan and this has been made available to all relevant entities. I understand that at the national level, airports and airlines have responded positively to the increasing demands placed on them relating to security and have co-operated in implementing changes since 2001.

As the House is aware, there was a recent European Commission inspection of Dublin Airport. Dublin Airport and other airports in the State are subject to frequent audits and inspection by international organisations such as the European Civil Aviation Conference, the US Transportation Security Administration, foreign airlines and other governments. My Department also conducts regular security inspections and tests of aviation security facilities and operators at Irish airports. While all audits raise issues which must be looked at, no significant issues have been raised regarding Dublin Airport by these audits.

The recent inspection by the European Commission was the first by that body at an Irish airport and was intended to establish the compliance by Dublin Airport and airline operators with the legal requirements set down in EU Regulations 2320/2002 and 622/2003. Officials from my Department accompanied the inspectors during the course of the inspection. Similar inspections have been conducted by the European Commission at other airports in the European Union over the past two years since the adoption of the regulations.

At the completion of the inspection, officials from my Department and the DAA received an oral briefing on the findings of the inspection last Friday. In accordance with established procedures and practice, my Department, the European Commission or the DAA will not be making any comment on the specific outcomes of the inspection. A formal report will be sent by the European Commission to my Department in due course dealing with all relevant issues. This is a confidential report and will not be published.

As the House is aware, during the course of the inspection, a number of controlled tests were undertaken by the inspectors to test the various security arrangements around the airport. Some of these tests breached key security arrangements. Department of Transport and DAA officials were on hand to ensure all appropriate action was taken and that any security breaches identified were immediately addressed. Specific remedial measures were implemented by the DAA and I was furnished with a report from the authority on the measures taken. I wish to state categorically that no explosives, detonators, guns or live ammunition were used during those tests. Media speculation that such items were used is totally unfounded.

Let me assure the House that I am determined that any deficiencies identified during the inspection will be remedied. Apart from the immediate remedial actions, I have instructed my officials to prepare an action plan in response to the Commission's findings. This will be done in consultation with the airport authority, airlines and other entities. I am determined that there will be a consistent and comprehensive application of security measures at all airports. I expect that all relevant operators will fully engage and co-operate with my Department to ensure that this is achieved.

The House will recognise that the nature of security precludes detailed discussion of measures. Therefore, I will not disclose the nature or extent of any security measures that have been implemented or the nature of any additional measures that are under consideration. However, I am satisfied that the Dublin Airport Authority responded effectively and immediately to the deficiencies identified during the tests.

Recognising the serious issues that were identified during the inspection, an extraordinary meeting of the DAA board's sub-committee on security was convened on Thursday, 14 April to review the issues. The board's sub-committee approved proposals for the appointment of an internationally recognised security consultant to undertake an urgent examination of the security systems and procedures of the airport. I was made aware of this and fully support that an international expert to benchmark against would be available to the DAA to go beyond its own expertise. I will ask the chairman to report to me on the outcome of this examination as soon as the information is available.

A special meeting of the Dublin Airport security committee attended by senior managers from relevant organisations was convened on the morning of 20 April at the request of my Department to review the findings of the EU inspection and to ensure that all operators comprehensively implement approved security requirements. Representatives from my Department and the Garda Síochána were in attendance.

I have asked that an early meeting of the National Civil Aviation Security Committee, NCASC, be convened to review the findings of the EU inspection and to address any issues arising from it. The role of the committee is to advise the Government and the civil aviation industry on security policy for civil aviation, to recommend and review the effectiveness of security measures and to provide for the co-ordination of the various interests involved. The committee is composed of representatives of Departments, Aer Rianta, the airlines, the Garda Síochána, the Defence Forces, An Post, Customs and Excise, the Irish Aviation Authority and the Irish Airline Pilots Association, IALPA. An assistant secretary from my Department chairs the committee. Any advice from the NCASC will be taken into consideration in the action plan to which I referred.

It is not only airport operators who have aviation security responsibilities. Airlines are obliged to comprehensively implement a range of approved security measures and procedures. There were significant failures in this regard. The problem was not just within the airport. Being aware of the specific details, there was an equality of failure, which is worrying. However, the response from all involved on both sides has been positive in putting matters to rights. Officials from my Department convened meetings with the airlines during the course of the inspection to ensure their full and proper implementation of security measures.

My Department has been in touch with other airports in the State concerning full implementation of security measures, which answers some questions raised with me by Senator Dooley and others. All operators have responded positively and my Department will be keeping the situation under review.

I will address the issue of delays that have resulted from the increased security arrangements at Dublin Airport. The DAA is monitoring passenger movements and controls to minimise inconvenience and delays and is liaising closely with the airlines. Passengers can make an important contribution to easing the workload of screeners by minimising the volume of hand baggage presented at the screening points and by co-operating with the screeners' instructions.