Seanad debates

Tuesday, 15 July 2014

State Airports (Shannon Group) Bill 2014: [Seanad Bill amended by the Dáil] Report and Final Stages

 

4:40 pm

Photo of Sean BarrettSean Barrett (Independent) | Oireachtas source

I would like to give a special welcome to the Minister, my former student. Members can blame me if some of his policies turn out to be wrong. I wish him every success. One of major things I have done since I entered the House is send him letters of congratulations as he advanced in his political career. We are all proud of him.

National airport bodies are an anomaly. Airports in future will compete and, as Senator Mulcahy said, Shannon Airport will have its freedom. I wish Cork Airport would be given the same facility under section 1 and the Minister will see when he reads the debate on the Bill that I proposed this to the former Minister, Deputy Varadkar. Cork Airport is two thirds bigger than Shannon Airport but nobody knows what to do with the new terminal there, which cost €68 million. It was unnecessary and it is a white elephant. It is also a millstone around the neck of the airport.

Page 9, line 23 states the airports shall conduct their business at all times in a cost effective manner. The Commission for Aviation Regulation has recommended that charges at Dublin Airport should reduce by 4.8% a year for the next five years.

They were overcharged to pay for Terminal 2 and we lost tourism as a result. The Department has a vital role in monitoring the efficiency of the airports. Cork Airport has an unnecessary terminal but good labour productivity. Shannon Airport had a low level of passengers per square metre of terminal and had low labour productivity. Such is the task that faces us. Airlines and airports compete and this is going in the right direction. While I wish Cork Airport had got its freedom, the former Minister, Deputy Varadkar, left it open for Cork Airport to become an independent airport at some stage. If it were in the UK it would compete and would be in the top 20 airports there as a separate, independent business. I welcome what the Minister is doing for Shannon Airport and I wish he had done the same for Cork Airport. He must monitor the efficiency of airports because, from being a State monopoly, they have inherited a very high cost base.

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