Paddy Burke (Fine Gael)

I welcome the Minister of State, Deputy Callely, to the House. He has been here quite often in recent weeks. I welcome the opportunity to speak on the important Air Navigation (Eurocontrol) Bill 2005, which for the most part I support. Its many positive aspects include its efforts to modernise air traffic management systems throughout Europe. It is crucial that we increase co-ordination between all Eurocontrol member states, not least because of the massive increase in the number of flights since the advent of low-cost air travel and the consequent increase in the numbers of landings and take-offs from airports across Europe.

Eurocontrol, which is the European organisation for the safety of air navigation, has a long history and has served Europe well in co-ordinating air traffic for over 40 years. It has 35 member states at present. Its primary objective is the development of European air traffic management. Eurocontrol develops, co-ordinates and plans the implementation of short, medium and long-term pan-European air traffic management strategies and associated action plans. It partakes in a collective effort that involves national authorities, air navigation service providers, civil and military airspace users, airports, industry, professional organisations and the relevant European institutions.

One of the most significant changes to the convention that is being made in the revised convention before the House is provided for in the article that allows for the expansion of Eurocontrol's authority to include airport taxiways and runways, as well as the areas which are en route. The article also provides for increased research and improved co-ordination of elements of air traffic management. The revised convention before the House will permit greater co-operation between Eurocontrol and other European institutions. It will introduce European air traffic management performance review and target-setting systems. It also strives to create a more efficient decision-making process within the Eurocontrol commission, based on majority voting and the reinforcement of co-operation between civil and military authorities. Eurocontrol has made important changes to its administrative and deliberative structures by allowing for the establishment of a provisional council, which will be the organisation's central deliberative body. The council will be instrumental in implementing the expanded activities permitted under the revised convention.

The Common Market was established and expanded with the aim of creating a unified trading area within Europe. Similarly, Eurocontrol has attempted from its earliest days to unify Europe's air traffic management system. This positive development corresponds with the European ideal of encouraging closer co-operation in all aspects of life. The revised convention significantly expands the powers of Eurocontrol in many key areas. It will allow the organisation to improve its co-ordination of the actions of its contracting parties in crucial areas of air traffic management and to impose binding decisions on them. It is clear that this power of enforcement is one of Eurocontrol's most important powers, particularly when one considers the importance of ensuring that the safety of air travel is the paramount consideration and having a powerful watchdog to protect the flying public.

I hope the increased powers that the revised convention will give to Eurocontrol to assist it in its key role as the co-ordinator of European air traffic control will help to address Europe's worsening air traffic problems. Senators are familiar with the delays which are often encountered at this country's airports. We have not been helped in that regard by the Government's delay in making a decision on the construction of a second terminal at Dublin Airport. Air traffic delays are a tiresome burden for passengers, frustrate the expansion and efficient operation of airlines, lead to additional costs for airlines and create losses for the national economy. I welcome any legislation that helps to address such problems by facilitating better and more effective pan-European co-operation in air traffic management.

The unprecedented expansion in the business of low-cost carriers in recent years seems to have made air traffic problems worse. The European Commission has argued that some air traffic delays can be attributed to the manner in which airspace is organised in Europe. The Commission has argued that the problem is linked to European fragmentation along the lines of national boundaries. Such divisions make air traffic delays and air traffic congestion much worse than they need to be, thereby highlighting the need for better co-ordination and forward planning, services which Eurocontrol is best placed to provide. I agree with the Commission's statement that Europe cannot retain frontiers in the sky, given that it has abolished them on the ground in areas like free movement and free trade.

I would like to raise the broader but related issue of the EU's open skies deal with the US, which has been the subject of a great deal of discussion in recent months. I urge the Minister for Transport to make progress in respect of the deal and the renegotiation of the bilateral agreement with the US, which offers tremendous opportunities for Ireland. I do not believe we should lose out to other European states in that regard. I recognise that Shannon Airport is a particularly sensitive issue that has been discussed for some time. The problems in that respect need to be resolved to the benefit of Irish aviation growth.

I am very supportive of the broad outline, aims and objectives of the enabling legislation before the House. It has come to my attention, however, that the Bill in its present form raises concerns for some people within the aviation industry. I will endeavour to point out to the Minister of State the complicated problems encapsulated within the Bill. The main difficulty in the legislation relates to the collection of Eurocontrol charges, which are levied by the organisation if a member state airline breaches a regulation. The arrangements for the payment of such charges are set out in a 1981 agreement, which Ireland has signed. Ireland appears to have gone beyond what is required under the agreement, however, for reasons which I do not understand.

The 1981 agreement provides that if an operator fails to pay the Eurocontrol charges, each member state will give Eurocontrol the power to sue the operator to obtain the full payment. Ireland appears to have gone beyond the normal regulations by permitting Eurocontrol, under its enabling legislation, to detain or sell aircraft to enforce the payment of the charge. It also provides that Eurocontrol can seek payment from non-operators and allows preference to be given to outstanding Eurocontrol charges over other debts in the event of an operator becoming insolvent.

People within the Irish aviation sector have pointed out to me that the Irish Aviation Authority Act 1993 conflicts with the common collection process that was adopted by other Eurocontrol member states. They have argued that it distorts competition to the detriment of Irish interests, which seems arbitrary and unfair to Irish operators. I ask the Minister of State to explain the rationale behind the Irish provisions, which seem severe given that Eurocontrol has a 98% rate of recovery of such charges. Ireland is equally compliant with other countries so it does not explain why we have chosen to go beyond what is necessary under our convention obligations.

Indeed, Ireland has an almost exemplary record in regard to complying with Eurocontrol requirements. Since the introduction of the State Airports Bill 2004, we have gone further and permitted each of the State airport authorities to detain aircraft and sell them, regardless of ownership, to pay Eurocontrol in preference to other interests. This policy does not take into account that the operator and owner of aircraft are not the same in most cases.

We need to be careful to get the balance right and not unfairly penalise innocent parties to the detriment of the development of the Irish aviation sector. It could be off-putting to potential international investors in Irish aviation if we were to operate requirements more rigid than our European counterparts, when it is clearly not necessitated by our membership of Eurocontrol. Irish law as it currently stands permits Eurocontrol to take charges from innocent third parties, irrespective of guilt or innocence, either by way of the detention or sale of aircraft, which may only be leased by the operator. Such operators are not the party which takes the hit if the aircraft is ultimately sold to recoup the Eurocontrol charge.

There may even be constitutional issues in regard to the protection of property rights enshrined in Bunreacht na hÉireann. Until the enactment of the State Airports Bill in 2004, the Irish Aviation Authority exercised such powers on behalf of Eurocontrol. However, it rarely went so far as to seize the property of innocent third parties. This power of seizure and detention has now transferred to the three State airport authorities based in Dublin, Cork and Shannon, and there is a fear within the aviation sector that such reserve might not be so willingly exercised by these authorities in the future.

This is a complicated issue which I have done little more than briefly outline. However, I am sure the Minister's officials in the Department are well aware of this discrepancy in Irish law. To my knowledge Eurocontrol can bring proceedings to hold aircraft owners as well as operators liable, whichever is the most appropriate in the circumstances. This would appear to reduce the necessity for detention and seizure. Will the Minister of State explain why he believes this difference between Irish law and the method adopted by other Eurocontrol members is necessary? Will he consider amending the legislation to place the Irish aviation industry on a level playing field with other member states, who are also signatories of the Eurocontrol convention?

I welcome the Bill. I hope the Minister of State will address this issue on Committee Stage, if not today.