Diarmuid Wilson (Fianna Fail)

I welcome the Minister, who is a regular attender here, and his officials to the House.

Aviation issues have been an almost permanent item on the agendas of successive Governments for decades. Since my election to this House almost three years ago, it has regularly come up for discussion on the Order of Business and Private Members' business.

The reality is that there have been many crises in the aviation sector but little long-term planning. At its Cabinet meeting on 18 May the Government approved the aviation action plan proposed by the Minister for Transport, Deputy Cullen. The decision gives Irish aviation a clear strategic direction and an unambiguous mandate for growth. A majority sale of Aer Lingus has been approved in principle with the Government retaining a strategic stakeholding in the airline. I am glad that in his speech the Minister alluded to the retention of at least a 25% stake.

Financial advisers will be appointed to advise the Government on the size, type and timing of the sale. This decision allows Aer Lingus to secure funding for new aircraft and in turn to compete for, and win, new routes. If Aer Lingus flies to and from more destinations it can offer greater choice to consumers, open new markets for Irish tourism and grow jobs.

The Government's decision ensures that for the first time there will be investment for growth rather than just short-term funding to help in a time of crisis. I was pleased to hear the Minister reiterate today that he and the Government are interested in growth, not survival. If the airline is to enjoy its full potential the existing business plan must be implemented in full.

As part of the aviation action plan the Government also approved the building of a new terminal — the famous terminal 2 — at Dublin Airport, to be opened by 2009. The Dublin Airport Authority will commission terminal 2 for which an open tender competition overseen by an independent panel of experts will select an operator. I welcome the fact that the full tender for the operation of terminal 2 will be awarded by the independent group to the most economically sound proposition. It is vital for trade, tourism and our economy as a whole to improve access to Ireland. It is clear that we need extra capacity and I welcome the Minister's commitment to ensuring it is provided as quickly as possible.

A new pier for aircraft parking stands at Dublin Airport will be available from 2007. I also welcome the Government's approval of the triple safeguard to ensure maximum efficiency and cost-effectiveness of terminal 2, as outlined by the Minister in his speech. The three safeguards are consultation, verification and regulation. Terminal 2 will be designed to meet the requirements of airlines servicing Dublin Airport. To this end, the Dublin Airport Authority will consult in detail with the relevant airline operators.

Aviation experts will independently verify the final specifications and costings of terminal 2. The Commission for Aviation Regulation, in its independent statutory role, will ensure that charges reflect costs appropriate to the building of an efficient terminal. The Minister stated that the commission made an announcement today. The Dublin Airport Authority will consult with the airlines and the independent experts will verify the design. This approach ensures that terminal 2 will provide the best outcome for the customer and the taxpayer.

The aviation agreement makes very clear that long-term demand at the airport will be catered for. Infrastructural logjams are often the result of short-term thinking but this will no longer work. If we are to serve a modern economy we have a responsibility to think about the long term. That responsibility involves anticipating future passenger needs at the airport by advance planning for a third terminal. We need to plan far ahead for the delivery of transport infrastructure. This approach should apply to aviation just as it does for to other forms of transport. Preparing now would yield two clear benefits. First, it will ensure that when passenger numbers determine a third terminal is required we are ready to respond and second, ensuring extra capacity is delivered when it is needed will avoid the costs that would come with providing too much capacity too soon.

In his speech the Minister stated that under company law, by retaining ownership of over 25% of Aer Lingus the Government cannot be forced to sell its shares and can also deny other shareholders through its ability to pass special and extraordinary resolutions, such as making changes to the memorandum and articles of association. There has been a great deal of scaremongering about this issue. I also welcome the Minister's comments on the loss of the brand, the slots at Heathrow Airport and the transatlantic services.

Senator Paddy Burke stated that this is primarily a Fianna Fáil plan and that the Progressive Democrats received some concessions or crumbs from the master's table. The Senator would use his time better in consulting with his party colleagues and his party's history in regard to Aer Lingus, Dublin Airport and the other State airports. He should also spend more time with his party colleagues working on the new arrangement with the Labour Party, the Green Party, although Green Party members do not like mention of their party in connection with any future potential government, and with the rag bag of Independent candidates which will be needed if his party is to have any chance of forming a government after the next election. Most right-thinking people do not think this group has any hope of achieving that goal, even when such an assortment of people say "No" to everything.