Frank Feighan (Fine Gael)

I welcome the Minister of State to the House. That it is necessary to introduce a Bill of this nature is a reflection of recent developments. I thank Mr. Micheál Ó Méalóid of the aviation regulation and international relations division of the Department of Transport for giving Members some helpful briefing documents. Such advance information is welcome when one is speaking on a technical matter such as the Bill before the House. I thank the officials from the Department of Transport for their assistance.

If we had considered the state of the aviation industry four years ago, we would have been sure that the days of aircraft being hijacked were over. That was before thousands of people were killed in the horrific attacks in the United States on 11 September 2001. The harrowing scenes we saw on television that day made clear to everyone the dangers of international terrorism. Many insurance providers stopped offering indemnities as a consequence of the events of that day. The Government, like its counterparts in many other EU member states, introduced a system of indemnity to compensate for the failure of the insurance industry to offer such a system.

The insurance industry often demonstrates its importance and strength by picking and choosing the forms of insurance cover it wishes to provide. In this instance, insurance companies decided to withhold cover because they were worried about becoming bankrupt. We sometimes worry about the simple things in life. It would be very serious if a "dirty bomb" were to spread toxins, etc., and kill many people. We should bear in mind that such an event could also bankrupt the State and many other countries. This is a serious issue. I commend the Minister of State on bringing this legislation to the House. I would like him to give specific details in response to my questions about some aspects of the Bill.

The Air Navigation and Transport (Indemnities) Act 2001 related to airports with commercial scheduled services. I welcome the extended definition in this Bill, which will include the aerodromes at Connemara, Inis Oírr, Inis Meáin, Inis Mór and Weston. Airlines would not be allowed to use such aerodromes if the indemnity was not extended to them. The decision of many insurers to withdraw cover for aircraft hulls will cause many aircraft to be grounded. The Government had Hobson's choice — it had to pursue this course of action to provide insurance cover in the interests of the safety of passengers and third parties.

The Minister of State has indicated that a small levy — a certain percentage of the cost of a flight — will be imposed on passengers. How expensive will the levy be? What will be the additional cost to passengers? While one cannot put a cost on passenger safety, we need to be given details of the extra levy that will be placed on an average airline ticket. The Minister of State also referred to a sinking fund of €9 billion. I wonder, without having gone through the figures closely, whether it is enough. Will that fund cover all the indemnity? If a "dirty bomb" explodes over Ireland and leads to damages of over €9 billion, will the Government be able to keep its costs below that level? If we found ourselves in a situation where we could not afford it, would other EU countries, or other countries around the world, help us? It is a serious situation which is more likely to happen in other countries, and we may have to help them.