Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 145: To ask the Minister for Transport his preferred position with regard to the debt burden of Cork Airport; and if he will make a statement on the matter. [3327/06]

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 160: To ask the Minister for Transport if a final decision has been made as to the future of the Great Southern Hotels; when this plan will be put into action; and if he will make a statement on the matter. [3328/06]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 205: To ask the Minister for Transport the reason for the delay in the implementation of the break-up of Aer Rianta; and if he will make a statement on the matter. [3326/06]

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 209: To ask the Minister for Transport his views with regard to the proposed redundancies at Shannon Airport; and if he will make a statement on the matter. [3329/06]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 145, 160, 205 and 209 together.

The State Airports Act 2004 provides for the establishment of the three State airports at Dublin, Shannon and Cork as fully independent and autonomous authorities under State ownership. The Act provides a framework to allow for an orderly approach to the distribution of the assets of Shannon and Cork airports in conformity with the capital maintenance and other provisions of the Companies Act. New boards were appointed at all three airports in 2004.

The boards of Cork and Shannon Airports are now charged with making preparations to assume responsibility for the ownership and development of the airports. They are also empowered to undertake certain management and operational functions, on an agreed basis with Dublin Airport Authority, during the interim period.

Under the Act, before any assets can transfer to either the Shannon or Cork Airport Authorities, the Ministers for Transport and Finance will have to be satisfied as to the financial and operational readiness of the airport authorities. Accordingly, each airport authority is required to prepare a comprehensive business plan and obtain the Ministers' approval for these plans before any assets can be transferred.

The three State airport authorities are continuing to work on the preparation of their business plans with the Dublin Airport Authority, DAA, co-ordinating the process. In this context there is a range of issues, including the unsustainable cost base at Shannon Airport, the recent airport charges determination for Dublin Airport by the Commission for Aviation Regulation and the optimum mechanisms for the financing of the new terminal in Cork, that need to be carefully considered. These are complex issues that the airport authorities must consider carefully and, as I have indicated previously, I have not imposed any artificial deadlines for the completion of the business planning process.

As regards Cork Airport, a major new terminal development project is currently being completed. The new terminal will deliver an annual passenger capacity of three million people with the facility to expand to five million, when needed.

There was an indication at an early stage in the airport restructuring process that the intention was that both the independent Cork and Shannon Airports would commence on a debt-free basis. However, this was always going to be subject to determining the optimum mechanisms for allocating airport assets among the three airports in compliance with the capital maintenance rules and other provisions of the Companies Acts.

The position with regard to the transfer of assets to Cork Airport Authority was set out in the course of the passing of the State Airports Act 2005. Because of the tightness of DAA's distributable reserves a phased approach to restructuring was outlined at the time. The option was mentioned of the negotiation of a finance lease covering a portion of Cork Airport's assets to facilitate the earlier establishment of Cork as a fully independent airport. The Deputy can be assured that Cork's ability to operate on a completely commercial basis will be fully assessed as part of the business planning process and will be factored into the decisions made.

The need to address the cost base of Shannon Airport is not related to the restructuring of the State airports as this has long been identified as a pre-existing challenge. It is expected that any necessary staff reductions that may arise will be achieved by voluntary early retirement or voluntary severance schemes to be negotiated with the trade unions.

The Shannon Airport Authority is currently engaged with trade union representatives on its rationalisation proposals. The proposals are being discussed under the chairmanship of the Labour Relations Commission. I understand that in the last number of days the Shannon restructuring plan has been jointly referred to the Labour Court.

In relation to the Great Southern Hotels Group, GSH, I understand that its parent company, the Dublin Airport Authority, is currently considering how to achieve the optimum outcome for the future of the hotels, having regard to their financial position. I understand that proposals on the future of GSH are to be submitted to my Department shortly, following consideration by the boards of GSH and the DAA.