Martin Mansergh (Fianna Fail)

As I believe in being as politically fair as possible, it is appropriate to pay tribute to former Deputy Jim Mitchell for allowing Ryanair to commence operations. I welcome the Minister to the House and the decisions of Government, which are essentially correct. While it is true the State could have invested in Aer Lingus under the Brussels rules, we saw in 2001 that if there were a downturn, all sorts of obstacles would have been placed in the way of such a measure. It would have been represented as subsidisation. State airlines in other parts of Europe went bankrupt as a result of such events. All things considered, the Government's approach is correct.

I noted the Minister's comment that the emphasis in Aer Lingus should now be on growth, rather than just on survival, and the extension of connections to further flung parts of the world such as Asia and South Africa. As Senator McDowell observed, it is an interesting reversal that the transatlantic flights which used to be loss-making are now among the most profitable undertakings of the business. I accept that the 25% plus shareholding which the Government will retain will provide it with substantial leverage in strategic decisions which relate the vital interests of the country. There are few interests more vital than our air connections.

There is an instinctive reaction in some quarters against any form of privatisation. Some of the voices from those quarters were heard at the Labour Party conference at the weekend. I am not inclined to entertain lectures from such voices. I have been around long enough to remember what happened to Irish Shipping which was simply abandoned when the Taoiseach of the day went on what he called a white elephant shoot. I remember the very unhappy outcome of the sale of Irish Steel in Cork to a fabulously wealthy Indian. It was sold a few years later for a nominal amount, the facility was closed and the owner walked away. Without referring to matters which are the subject of tribunals, the sale for a song of the second mobile phone licence was a disgrace given that it was worth approximately €400 million within two years. Where were the then Tánaiste's departmental officials, programme advisors and others when that was done? Contrary to Senator Browne's comments, the taxpayer was not the loser in the Eircom privatisation. One can argue that incipient shareholders had their fingers burnt, but that was a separate issue. The general public interest did not suffer.

It is amazing that discussion of the simple economic law of supply and demand has been absent from the debate on Aer Rianta. Taking air travel and airport charges together, the real cost of air travel has plummeted in the past 20 years. It is not, therefore, in the least bit surprising that demand has soared. It is this which has created the capacity problems we are grappling with currently which are compounded by concerns about security. I accept that Dublin Airport, at which until recently most of us were very comfortable and of which, even, very proud, has become quite difficult to get through. I worry about the effect delays will have on regional connections within the country. If one must wait at the airport for two hours before one's flight, one might as well travel by road to most domestic destinations. There may be a case for establishing a separate, fast-track regional service within the terminal which people can get through without entering the general melee.

While I will not get into the issue of competing terminals with which I have dealt before, a matter which has not been adverted to sufficiently is the extraordinarily high car parking charges at Dublin Airport, especially at short-term facilities. Access to the airport must be improved to cope with the increased numbers of visitors envisaged. I look forward to Government announcements in the reasonably near future on the provision of some form of rail access. If visitor numbers are to increase to between 30 million and 40 million, I suspect more than one type of rail connection will be needed, including a metro and fixed-track line.

Some concern has been expressed about the way in which debt will be managed, especially that of Shannon and Cork airports. While it is important the airports get off to a good start, Dublin Airport is not anxious to be saddled with the whole burden. Whether the Government has a role in the matter must be considered.

I reject completely the politically reductionist and populist approach of Senator Ross which reduces everything to seats and political interests. While he has not stated it explicitly, it is obvious the Senator believes the Government should attempt to ride roughshod over the trade unions while ignoring social partnership which works very well. The decisions stand on their own merits irrespective of political considerations.

I endorse everything my colleague, Senator Dooley, stated about improving access to Shannon Airport. Presumably, the 25% Government share will help to maintain connections to the airport. My only doubt is that if it is possible to otherwise ensure connections to Shannon Airport, the five-year transition period which is being sought may be too long.

My final appeal to the Minister is only tangentially related. While I am not in favour of the privatisation of the Great Southern hotels, it is clear that they need another home. The Dublin Airport Authority has no interest in them and the parcel has, unfortunately, been passed through a number of different bodies. A more suitable home must be found for them.