John Minihan (Progressive Democrats)

I appreciate the Cathaoirleach's acceptance of this matter on the Adjournment and the attendance of the Minister of State, Deputy Killeen, on behalf of the Minister for Transport, Deputy Cullen, hopefully to clarify the issue. The question tabled is clear as regards whether the Minister intends to honour the previous commitment to leave the Cork Airport Authority debt free, or whether he has decided on an alternative structure. The people of Cork deserve a straight answer on the issue of Cork Airport, as a recent media report on the issue put it.

The fear is equally clear, that despite a commitment given by the then Minister for Transport, Deputy Brennan, Cork Airport will have to bear the cost of the new terminal building. That is the over-arching concern. However, in the interests of clarity I would encourage the Minister to address some further issues, and first, I will look briefly at the context.

The view of the Progressive Democrats is that competition can transform the aviation sector generally in the same way as it has the airline business, ultimately to the benefit of consumers. Competition between airlines has worked. It will work, between terminals, and between the service providers within them, and it should work for airports. Ireland's airports must be able to compete with each other. Cork Airport must be independent and free. It must be independent so that it may compete. It must also be debt free, so as to be able to do so fairly.

The Minister's predecessor correctly stated that when Aer Rianta was to be broken up, Dublin, not Cork, would bear the cost of the new terminal, which it is believed will be €160 million. What is needed now is either confirmation that this remains the case or an admission that something has changed. If it has changed, then the House should hear of it.

Has the Minister for Transport instructed the board of the Cork Airport Authority to accept an amount of debt for the terminal? If he has, how much? If the Dublin Airport Authority has been informed that it now does not have to carry the full debt in respect of Cork Airport, the people of Cork would like to know. Is Dublin now only to pay a percentage of the total cost?

This issue is taking place in a general climate of uncertainty. While I seek answers on allocation of the burden of cost for the new Cork terminal, I wonder whether the Minister knows what its final cost will be. If not, this begs the question as to how he can expect the board of the Cork Airport Authority to engage in discussions with the board of the Dublin authority on repayment. It will be negotiating on an amount that is, as yet, not known.

As I stated earlier, the objective is to see Cork Airport independent and debt free, to compete to the benefit of consumers. As an independent authority, the Cork Airport Authority is based on a commercial mandate and its board has a fiscal duty to only absorb costs which in its opinion are reasonable and sensible. I trust the Minister agrees with this view. This prompts the question, however, as to what action the Minister proposes to take if the Cork and Dublin airport authorities cannot agree on a repayments scenario. To place any burden of cost on the Cork Airport Authority defeats somewhat the purpose of the break-up. Does the Minister accept that the charges in Cork are already the highest of the three airports? To increase charges to repay debt on the terminal will merely result in Cork becoming more uncompetitive in comparison with Shannon.

I urge the Minister to address these points for the benefit of Cork Airport, its board, workers, the people of Cork and Irish consumers generally.