Seanad debates

Thursday, 16 June 2005

Air Navigation and Transport (Indemnities) Bill 2005: Second Stage.

 

1:00 pm

Photo of Ivor CallelyIvor Callely (Dublin North Central, Fianna Fail)

I thank Senators for their contributions and will try to respond to the questions as they raised. Senator Feighan asked what would be the charge on the airlines and would it be in euro or cent. The charge in 2001 was 30 cent per passenger. No decision has been made but this guideline is in place for the 2005 charge. A question was asked about the figure of €9 billion. The Bill limits the Government's exposure to this amount. If the cost incurred were greater, there would be an international reaction and decisions would then have to be made. No arrangements are in place for other countries to help us. As I indicated and as has been witnessed in the past, there is usually a natural international reaction.

Senator Dooley asked a range of questions. On the matter of insurers, they have been renewing their risks and monitoring the market since 2001. They have concluded that so called "dirty bombs" present a risk they cannot sustain because so many people would be affected. The insurers' exposure would be too great. Both Senators Dooley and Morrissey asked about ordinary insurance. There is no indication that insurers are considering withdrawing ordinary aviation insurance. The regulation of the insurance industry is undertaken by IFSRA.

I thank my good friend Senator Wilson for his kind comments on the Bill and for raising a number of issues. I intend to respond to his and Senators Daly and Morrissey's questions together, as they all concern the same issue, namely, the fund itself. From the country's point of view, the total exposure will be in the amount of €9 billion.

Senator Daly made some interesting comments and I may take the opportunity to discuss the matter further with the Senator because I am aware that he has an enormous fund of knowledge and experience relating to the marine fund. This is something that we can explore further at a later date. However, there is no aviation fund that would reflect or mirror the marine fund.

In response to Senator Wilson's question, when the EU pooling scheme commences it may develop along the lines alluded to by Senator Daly. At present the is that the aviation industry will pay for the establishment of the fund, with Government guarantees, until it is large enough to cover the 2001 charge of 30 cent per passenger.

We will also examine the wider international issues that may have an impact in this area. The Bill allows for indemnity for private aviators but no decision has been made on whether this should be available and in any case, the indemnity will only apply to a small part of the aviation aspect of their insurance.

Senator Daly made a point relating to a private jet and I wish to clarify the situation in that regard. We must examine the impact that one aircraft may have on an airport, for example, Shannon Airport. We all want to ensure that Shannon Airport continues to operate, develop and accommodate all of the necessary components to make it a viable operation. We cannot debar anyone and we must ensure that appropriate insurance is in place for all who wish to utilise the airport. Should there be a disaster, everybody would then be covered and would be in a position to continue to operate.

We are dealing with legislation that addresses an important area, given where we are on the world stage, enjoying the fruits of the 21st century and playing such a pivotal role in the global economy. It is important to ensure that the aviation business continues to grow and develop and I know that it is the wish of Members of the Oireachtas that Ireland continues to play a pivotal role, as we have done in the past, in the development of aviation. There are obvious reasons for this wish, not least the fact that we are an island nation.

I hope that I will not be back in this House explaining the application of this legislation. However, I would welcome the opportunity to return to deal with other issues, including the scourge of international terrorism. It is to be hoped that I, my colleagues in Government and Members of this House will show the courage and strength required to address the course of conflict and the evils that have created some of the concerns that exist regarding international terrorism, as experienced, for example on September 11. Hopefully, such events will never be witnessed or experienced again. Ideally, we will never be in a position where we have to apply the provisions we are putting in place through this emergency legislation. This legislation is a safety net that will ensure our aviation industry can continue to operate.

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