Michael McCarthy (Labour)

I second the motion. If we were to talk of political promises made and not fulfilled, and various commitments made by the Government, particularly with regard to the 2002 manifesto, we would be here for the night. It is important to focus on the matter before us. Particularly with regard to the greater Cork region, where Fianna Fáil had its biggest success in the last general election, winning ten seats out of 20 in Cork city and county, this particular decision stands out well above every other unfulfilled commitment because it has a capacity to seriously undermine the economy in Cork and the competitiveness of Cork Airport.

It is almost three years since the then Minister for Transport, Deputy Brennan, famously made the statement in which he pledged to dismantle Aer Rianta and set up three fully independent autonomous airports, the Dublin, Cork and Shannon airport authorities. I am repeating what he said in his press statement at the time. The promise was of fully independent and autonomous airports under State ownership within a year, yet three years later we are not quite sure what the future holds for those airports. Cork Airport is not guaranteed independence and autonomy, but it now looks almost certain that the decision made by Aer Rianta, within a month of the decision made by Deputy Brennan when Minister for Transport, will mean that the cost of a €140 million terminal in Cork Airport will be borne in part if not in full by Cork Airport Authority.

Senator Ryan made the good point that to get out of this mess, to discover all of a sudden that company law now prohibits the Government from fulfilling its obligation, clearly outlined in a number of statements by Deputy Brennan when Minister for Transport, means the Government is hiding behind company law.

I want the Minister for Transport to address a number of issues. Who in the Department of Transport was advising the then Minister, Deputy Brennan, in July 2000, and what was that advice? From a Cork perspective in particular I find it difficult to swallow the notion that the issue of company law was only discovered subsequent to a decision. This was one of the biggest decisions taken in recent years by any Minister for Transport. It was a major decision, and to be fair to the then Minister, Deputy Brennan, one would have to return again to the manifesto of 2002 and look at the party which pushed for separation of the airports, namely, the Progressive Democrats. That is how far back this issue goes. That was well established and well known by commentators, apart from Opposition politicians.

It is very difficult to accept the reality of the situation when for example Ryanair, as a result of this debacle, has decided to shelve its Cork to Liverpool service. It now flies from Kerry, where costs are significantly lower. Much of the time, I would not agree with anything said by one particular individual in that airline, but I can accept that decision in the context of the statement by Michael Cawley, Ryanair's deputy chief executive, that the increases were having a detrimental effect. It was Michael Cawley rather than Michael O'Leary who said that. That has resulted in the loss of up to 20,000 tourists. The Minister knows full well the location of the airport and its critical importance to the economy of Cork and particularly the tourism economy of Kinsale, including the Beara Peninsula and Mizen Head. There is also a loss of €13 million to the Cork economy.

A certain spin is being pursued by Fianna Fáil in Cork. The spin is precisely this, when the then Minister for Transport, Deputy Brennan, gave his commitment in regard to debt-free status, it related to the debt on the books of Cork Airport Authority in 2003. That is absolute rubbish. To hit that myth on the head I shall read from the Minister's press release when he announced the break up. To say that the debt-free status only applies to the 2003 accounts is incorrect. The then Minister for Transport, Deputy Brennan, said:

When I establish the independent Shannon and Cork authorities on a statutory basis they will both commence business free of debt. The existing debts associated with both airports, including the debt associated with the major new investment programme at Cork, will not be assigned to the new companies but will remain with Dublin Airport.

Clearly that was the thinking of the then Minister for Transport, Deputy Brennan, at that time. It puts to bed the myth that is being spun in the Cork region by Fianna Fáil. Of all the decisions made in regard to Cork and all the commitments made by Fianna Fáil and the Progressive Democrats to the Cork region in recent years, this is one from which Cork will suffer most. Cork Airport will not be autonomous and will not be independent. It is unfair to expect Dublin Airport to consume the debt arising from the new terminal at Cork Airport. We are left with a political mess entirely of the Government's making.

Who advised the then Minister for Transport, Deputy Brennan, in 2003? I presume the same people are advising the Minister in 2006. When was the issue of company law first discovered? Is it inevitable that Cork Airport Authority will have to shoulder all that debt, which is probably upwards of €160 million? I look forward to the Minister's reply.