John Minihan (Progressive Democrats)

The view of the Progressive Democrats is that competition, in the same way as it has transformed the airline business, can transform the aviation sector generally for the benefit of consumers. Competition between airlines has worked and it will work between terminals, between service providers within terminals and it should work between airports.

The Minister's predecessor correctly stated when Aer Rianta was being broken up that Dublin, not Cork, would bear the cost of the new terminal, which is €140 million to €160 million. The objective was to have Cork Airport independent and debt free so it could 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 only to absorb costs that, in its opinion, are reasonable and sensible. I trust the Minister agrees with this view.

Placing a burden of cost on the Cork Airport Authority defeats the purpose of the break-up. Does the Minister accept that the charges in Cork are already the highest of the three airports? Increasing charges to repay debt on the terminal will merely result in Cork becoming more uncompetitive in comparison to Shannon, not more competitive. The people of Cork took great comfort from the words of the then Minister for Transport, Deputy Brennan, on 13 July 2004. I listened carefully to the debate and to the words of the Minister when he gave the explicit commitment Cork was awaiting. He stated:

I am just leaving the existing debt where it is. It belongs with Dublin and nowhere else and I am not moving it. The debts belong in Dublin and will stay there. Does [anyone] believe I should leave Cork Airport to pay it off while still developing the airport? The burden of those debts must be lifted from their shoulders to allow them properly develop for the future.

In light of recent debate, the people of Cork are now left wondering what has changed. Cork Airport's passenger figures are up 20% at 2.7 million and heading to 3 million in 2006. The airport already has the highest charges and, if saddled with a significant portion of debt, will have to increase charges to service debt. Airlines will not open new routes and existing routes will be threatened. Where do we go from here?

If it is now accepted that Cork Airport will not be debt free, our attention must move to the debt — how much will it be, how the repayments will be structured and so forth. A capital structure must be put in place so as not to create a position of insolvency in Cork Airport at any time. Such a position must be subordinate to the rights of employees. The workforce must be protected regarding future pay deals, pension rights and so forth. Repayment must be structured in such a way that it is based on ability to pay and it must not compromise future development. It must be linked in some way to, for example, increased passenger turnover.

The Dublin Airport Authority cannot place the Cork board in a position where it is at a competitive disadvantage. Shannon cannot be given preferential treatment, as in the past. This is meant to be an open, competitive race, not a handicapped hurdle.

The Dublin Airport Authority, consultants and, regrettably, the Department of Transport are obsessed with Dublin Airport and its future at the expense of Cork and Shannon. It is unthinkable that while the Dublin Airport Authority retains its assets in Birmingham and Dusseldorf airports and the Great Southern Hotels — and it is considering the sale of the latter — it plans to place a crippling debt on Irish airports and place Dublin at a competitive advantage over Cork and Shannon.