Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

I thank Senators for the contributions they have made to this Second Stage debate. I am going to endeavour to respond to as many of the issues raised as possible.

Senators Buttimer, Murphy and Ahearn raised the regions and supporting our regional airports. As Members will know, policy on regional airports has been influenced by the need to optimise conditions for regional development and connectivity. It absolutely is a key priority for the Government. We are acutely aware of balanced regional development and how all our airports, including our regional airports have suffered a huge drop in inbound tourism. Ensuring our airports and infrastructure were in a position to rebound coming out of this crisis has been the focus since the start of this pandemic. For that reason, out of a budget of almost €80 million in 2021, approximately 78% has been targeted at regional airports with Cork and Shannon receiving about 43% of the overall budget. Balanced regional development is a the heart of the programme for Government and we recognise all parts of Ireland must be able to prosper if we are to build a sustainable and resilient future and that global connectivity is absolutely critical, as is regional connectivity.

On climate issues, which were raised by Senators Murphy and Pauline O'Reilly, the Bill will for the first time require the IAA, as regulator, to take account of Government policy on aviation, climate change and sustainable development when making a decision on the price and the medium-term development of Dublin Airport.

Senators Dooley, Murphy and others raised IAA industrial relations issues. I am aware a significant proportion of air traffic controllers have made representation to the Minister, Deputy Eamon Ryan, over recent weeks. The Senators have also received correspondence outlining their concerns regarding workplace issues with the IAA. As with any commercial semi-State body, workplace issues are matters to be addressed, in the first instance, by the board and executive of that body. Nevertheless, briefings have been sought and received from the IAA on this issues raised in the correspondence. On the specific matter of the operation of the IAA's call-in scheme and any safety implications, the IAA executive has affirmed safety is its overriding priority and that at no point has safety been compromised in the operation of this scheme, nor has it posed any risk to the safety of air traffic control, ATC, services. It is important that all sides recognise the need to engage in dialogue in a constructive way to bring a resolution to the differences that have arisen. I hope that can be achieved. I understand that in an effort to ensure continued dialogue, and in an attempt to resolve the current issues, the IAA executive met Fórsa last week and the chairman of the IAA's internal dispute resolution board with a focus on addressing any outstanding concerns through dialogue. I again ask all sides to engage constructively in those engagements.

In relation to points made by Senators McGahon, Sherlock, Craughwell, Dooley and Boylan and engagement with IALPA, they will be aware that on Committee Stage in the Dáil, several Deputies raised a number of similar amendments. My reservations lay with with the question of whether such concerns would be more appropriately addressed on a more flexible, non-statutory basis, rather than hard-coding this into primary legislation. Department officials recently met both IALPA and the IAA on these issues. There was a full discussion and exchange of views on the amendments proposed and on the importance of addressing concerns using the most suitable instruments. IALPA is understandably passionate about its concerns and points to the long history of its engagement with the IAA. Indeed the report of the 2019 examination of the IAA noted that the working relationship between the IAA and the unions is poor. These are complex issues of trust and relationship-building. However, I am confident the new regulator intends to address the concerns of IALPA in a proactive and satisfactory manner on a non-statutory and consultative basis. I note that in his letter to all stakeholders on 21 September, the aviation regulator's chief executive designate is inviting observations on the preparation of a draft statement of strategy for the new IAA regulator for the period 2022 to 2024 and has proposed the following as deliverables, namely, to review and improve its regulatory processes, as necessary, to provide clear information on processes, including compliance requirements, to establish stakeholder forums to inform decision-making, to set out a charter for licenceholders and to establish forums for sharing best practice, for example, peer support. I stress also that the whole basis for this Bill is to reform the regulatory structure and to create a new independent regulator. Part and parcel of that reform will be stakeholder engagement under a new board, chairperson and CEO. IALPA will not be engaging with the IAA in its original form.

Senators Dooley and Pauline O'Reilly also mentioned issues around pensions. As Senators will be aware, the central objective of this Bill is to merge the regulatory functions of the IAA and the Commission for Aviation Regulation while establishing the new commercial State-regulated air traffic control service provider. As is established practice in State agency restructurings, the Bill contains robust provisions safeguarding employees' existing terms and conditions, including pension rights and entitlements. Employees of the IAA who move to AirNav Ireland will enjoy no less favourable terms and conditions under the new arrangements than those they do currently. The final scheme of the pensions transfer arrangement between organisations will require the approval of both the Minister for Transport and the Minister for Public Expenditure and Reform and will be examined to ensure they comply fully with the terms of the Bill. It is important to distinguish between the measures relating to superannuation that are necessary to give effect to the establishment of new structural arrangements and other pension issues under discussion through the company's industrial relation procedures. It is not necessary or appropriate for the purposes of giving effect to this Government policy on structural reform to seek to impose a precondition that all pension issues be resolved.

On other amendments, it is proposed to introduce a small number of Government amendments on Committee Stage to confirm the role of the Comptroller and Auditor General as auditor of the new regulator and to update the schedules to the EU legislation contained in Schedules 1 and 2 to the Bill.

I might leave it there. I outlined most of the Bill in my opening statement. I welcome the support received for this Bill and will reflect on all the points raised. I believe the Bill has cross-party support and thank Senators for that. I look forward to engaging with them on Committee Stage.