Simon Coveney (Cork South Central, Fine Gael)
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Question 238: To ask the Minister for Transport if, in view of the commitment given that the new Cork and Shannon Airport Authorities would be debt free, his Department is reneging on that undertaking (details supplied); and if he will make a statement on the matter. [16560/05]

Martin Cullen (Waterford, Fianna Fail)
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As the Deputy will be aware, the Cork Airport Authority was incorporated in September last following the passing of the State Airports Act 2004. The authority has been given the responsibility of preparing to assume full responsibility for the management and development of the airport. The authority also has responsibility for carrying out functions delegated to it, on an agreed basis, by the Dublin Airport Authority.

The 2004 Act provides a framework for a phased approach to the transfer of assets to the Shannon and Cork Airport Authorities which allows for one of the new airport authorities to be vested first, with the second being vested once sufficient distributable reserves have been built up within the Dublin Airport Authority. A key part of the preparatory work in advance of a separation of Cork Airport from Dublin Airport Authority is the preparation of a comprehensive business plan by the Cork Airport Authority. Business plans are also being prepared by the Dublin and Shannon Airport Authorities. The 2004 Act requires that both I and the Minister for Finance must be satisfied as to the state of operational and financial readiness of the Shannon and Cork Airport Authorities, including business planning, before the assets of each of those airports are vested in their respective authorities.

The business planning process will provide a basis for determining the most feasible options for carrying through the restructuring. As required under the State Airports Act, the Deputy can be assured that Cork's ability to operate on a fully commercial basis will be fully assessed as part of this process and will be factored into the decisions made.