Timmy Dooley (Fianna Fail)

I welcome the Minister of State to the House and welcome the introduction of the Bill in the Seanad. From my reading, the Bill is of a technical nature but, nonetheless, it is important and should come into force without delay. Any Bill dealing with safety is obviously of paramount importance and should be dealt with by the Legislature with the utmost speed.

The Bill will allow Ireland to ratify certain changes to the international convention which effectively established the European Organisation for the Safety of Air Navigation in 1960. As Senator Paddy Burke stated, it is not surprising that the convention would need to be updated because significant changes have occurred in the air transport and navigation sector in that period, particularly in terms of the growth of the industry, the greater number of aircraft in Europe, the increased number of flights and the increased number of passengers travelling. This growth in aviation is due to the significant growth of the economies of Europe, which makes us all better off, while globalisation has been a further significant factor.

While this growth is welcome, it brings certain difficulties for those organisations charged with the responsibility for ensuring that air navigation is carried out in a safe manner. The Minister of State clearly indicated to the House the wastage that takes place at present and the inability to get the best from the available airspace and air slots. However, if we ensure the Bill is put in place, we can move to a point where we can — I do not like to use the phrase — sweat the asset a little more. Despite what is thought about the size and scope of our skies, the number of flight paths is limited. It is important that proper management systems that cross individual state boundaries are utilised in an effective and efficient manner to ensure we continue to grow this sector in line with the growth of the economies across Europe and the world, and in particular to allow the continued globalisation to which we all refer.

It is agreed that safety is of paramount importance. Despite the large increase in aircraft movements and passengers travelling, air transport is thankfully the safest method of transport. This is highlighted by the carnage on our roads. If the numbers travelling on land are compared with those travelling by air, it is clear that, despite the complexities associated with aviation, air travel is safer than road travel. It is important that the highest standards are maintained to ensure that air travel remains at the top with regard to safety standards.

As an island nation, our dependence on air connectivity is of vital economic importance. Therefore, safety standards are essential. Real challenges are potentially emerging as more airlines compete for business. We know of the changes in the market, particularly in the past ten years but more specifically in the past three to five years, due to the emergence of the low-cost carriers, to which Senator Paddy Burke referred. However, low-cost cannot mean low safety standards. We must be clear on this point. The Government has a particular role to ensure through national legislation that safety standards are maintained despite the necessity to force down prices, costs and charges. This is being achieved through the aviation authority, Eurocontrol.

It is important the State does not facilitate a race to the bottom. In other sectors, we have heard the language used with regard to jobs. While we have lower costs and cheaper air fares, we must not force the industry to a point where safety is compromised. There are recent examples, with regard to which the Minister of State may be able to provide technical detail. The Greek carrier Helios regularly flies to and from Cyprus and operates charter flights to and from Ireland. Its passengers had real concerns about the safety of the airline for some weeks before one of its aircraft was involved in a crash. It is important that the desire of low-cost carriers to facilitate lower charges and ensure competition does not force them into a compromised position. While the outcome of the Helios investigation may not yet be known, if lessons are to be learned, the matter must be investigated, whether through Eurocontrol or the European Commission, to ensure that this race to the bottom in terms of cost does not mean a race to the bottom in terms of safety standards.

To deviate slightly, as a result of the lowering of costs, there is a desire to allow aircraft to land in a less expensive environment. This has led to a desire among some of our airport authorities to reduce the conditions of workers by outsourcing certain functions within airports. This is neither helpful nor necessary. There is still a capacity for airports, while reducing costs in line with the expectations of workers, to at the same time maintain a level of standards and quality of employment for all involved. Outsourcing is a quick fix solution which has serious repercussions for the future of employment. Cost-cutting must be also examined in how it affects the social fabric of the local community and region. Yellow pack jobs are in no way helpful for the morale or the wealth of a community. What is needed is a workforce open to real change. In recognition of changes in the aviation sector, the trade unions have a role in co-operating with management to ensure a reduction in cost bases. They must be prepared to enter negotiations to bring about cost reduction. However, management cannot force a situation of cost reduction through outsourcing. In co-operation with union representatives, bringing about changes in work practices will resolve some of the problems. In return, employees must take on these changes. Employers, in recognition of this, must pay a decent wage for a decent day's work. I ask the Minister of State to take an active role in defining policy in this regard, particularly with the recent establishment of the airport authorities in Dublin, Cork and Shannon.

I am familiar with these issues at Shannon Airport and I understand the same has arisen in the other airports. Management at Shannon Airport is proposing cost-cutting measures by outsourcing the catering division, effectively creating yellow pack jobs. Costs can be cut without doing this. The Government must carefully monitor this process to ensure a situation similar to that at Irish Ferries does not arise. While I accept Irish Ferries is not a State company, lessons can be learned from that experience.

All Members welcome low-cost carriers with the capacity to travel more freely and cheaply. However, the knock-on effects are significant. Carriers are making more profits in the lower cost environment. However, I do not want to see the workers carry the can for changes taking place across Europe. While the Bill does not specifically address the impact of these changes on employment, any legislation which deals with the aviation sector has the capacity to lead to changes in lifestyle of those providing the service. We must ensure there is no negative impact on their existence.

Eurocontrol does provide a good framework in which co-operation can take place across Europe. Senator Paddy Burke already mentioned that the European Commission is dealing with the open skies policy. Media reports indicate that the dual gateway policy is about to be changed. While Senator Paddy Burke would like this to happen sooner, I certainly do not want to see it expedited. I want to see it delayed, if possible, because it will have a significant impact on Shannon Airport. Some claim the only way to deal with this is when it occurs. Leaving the dual gateway status is the only way to deal with it. The incremental gain in tourism from transatlantic flights from a change to the dual gateway status will be of a limited nature. It will not compensate for the significant loss to the western seaboard. While there may be a small gain in passenger numbers on the east coast, the west will lose out. The Government will then have to put in place other measures to prop up the west's tourism industry. This will not be cost effective in the long term.

I want an economic impact study to be carried out on the ending of the dual gateway status, as has been proposed by several businesses in the mid-west region. I am not saying the outcome will be negative. Instead, it will set out the challenges from the drop in passenger numbers. It is then a matter of how we work back from that and put in place measures to ensure a decline in business in the region does not happen. The Government has good policies for decentralisation and balanced regional development. The dual gateway status provides for balanced regional development by ensuring direct transatlantic connectivity on a daily basis. It ensures the business community and the tourism services in the Shannon region are catered for. If the dual gateway piece is taken out of the jigsaw, the carriers will want to consolidate their efforts in one airport, namely, Dublin Airport. I would welcome any initiatives the Minister of State, Deputy Callely, can bring to bear on this matter.

I welcome the Bill, the speedy passage of which will be of immense benefit. It introduces an important framework for the delivery of a safe environment in air travel.