Bernard Allen (Cork North Central, Fine Gael)
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Question 44: To ask the Minister for Transport the position regarding negotiations between Ireland and the US with respect to the changes to the existing bilateral agreement between both countries; and if he will make a statement on the matter. [21178/05]

Martin Cullen (Waterford, Fianna Fail)
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I refer the Deputy to a reply to Question No. 490 answered on 14 June 2005, which is set out in full below. The reply states:

My officials have been maintaining contact with the US authorities, regarding issues surrounding the Ireland-US bilateral air transport agreement and the EU-US talks. As part of ongoing dialogue with the US on this issue, officials from my Department travelled to Washington to discuss the Ireland-US bilateral agreement on 6 April 2005, to explore what adjustments to the current Ireland-US arrangements are possible. The meeting was technical and exploratory in nature, and no conclusions were reached at that meeting. Both sides agreed to keep in touch, and to continue to consider how those issues might be moved forward, having regard to the EU-US negotiations.

The recent Transport Council in Luxembourg on 21 April 2005 considered the issue of the EU-US negotiations. The Council authorised the Commission to prepare an outline of what it considers could be the elements of an overall EU-US deal. That outline will, I understand, be presented to the Council at its next meeting at the end of this month. Should the Council approve an outline deal, then the Commission will seek to restart formal negotiations with the US, using that outline as a basis for negotiations. The negotiations would then focus on agreeing the necessary steps and stages to achieve the outline deal. Many uncertainties exist at this stage such as whether an outline deal can be agreed, whether the US will accept the outline deal if agreed in June, and how long it might take to negotiate all of the details of that deal.

I expect to have a clearer view as to how to proceed regarding the Ireland-US bilateral agreement following the Transport Council, since the prospects for a re-engagement of the EU-US process will have a major bearing on the EU and US's attitude to amending the existing Ireland-US bilateral agreement.

Increased access to US destinations under an open skies agreement would provide significant benefits to Irish tourism, trade, economic growth and aviation. However, I am equally clear that Ireland must obtain the best possible transition for Shannon, to enable a smooth phasing-in of open skies with the US in the future and I consider it appropriate for any changes that occur in this area to be on a phased basis over a number of years.