Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 57: To ask the Minister for Transport if he will meet with the Cork Deputies to discuss the possible debt of €200 million being incurred by Cork Airport Authority arising from the construction of a new terminal at Cork Airport. [9125/06]

Bernard Allen (Cork North Central, Fine Gael)
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Question 87: To ask the Minister for Transport if he will deliver on the promise that Cork Airport Authority would not inherit the debt arising from the construction of a new terminal at Cork Airport. [9072/06]

Kathleen Lynch (Cork North Central, Labour)
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Question 97: To ask the Minister for Transport if he is satisfied that the arbitrator appointed to mediate between Cork and Dublin Airport Authorities on the projected €200 million debt arising from the construction of a new terminal at Cork Airport is truly independent of both parties; and if he will make a statement on the matter. [9185/06]

Bernard Durkan (Kildare North, Fine Gael)
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Question 386: To ask the Minister for Transport the position in regard to outstanding debt at any of the airports here; the extent to which the revised plans for the future of Aer Lingus has affected such issues; and if he will make a statement on the matter. [9453/06]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 57, 87, 97 and 386 together.

I have already had meetings with my colleagues in Government in relation to the debt issue at Cork Airport and I would be happy to meet Deputies, recognising that the Cork Airport Authority together with the Dublin Airport Authority are responsible for completing a business plan under the State Airports Act 2004.

As was stated on my behalf in response to a motion on the Adjournment in this House in relation to this matter last month, the major new airport development project which is currently being completed at Cork will effectively deliver a new landside airport and represent the first major upgrading of all facilities since the airport was built in the late 1950s. When completed, the new Cork Airport will have a passenger capacity of 3 million people with the facility to expand to 5 million, when needed. It is important that the debate about Cork's future debt should not obscure this major development for the airport. Such facilities will greatly benefit the airport's users but will have to be funded. Cork's future as an independent airport has to take account of a realistic assessment of what is commercially feasible including the capacity of the airport to contribute to its capital investment programme.

In recognition of these commercial realities, the State Airports Act 2004 provides a framework for an orderly approach to the distribution of the assets of Shannon and Cork airports in conformity with the provisions of the Companies Acts. The Act also addresses business planning issues.

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. Such plans would address the funding of capital investment and feed into decisions on determining the mechanisms for allocating airport assets among the three airports. The ability of both Shannon and Cork airports to operate on a fully commercial basis will be fully assessed as part of this process and will be factored into the decisions made.

With regard to the appointments referred to by the Deputy, these are operational matters for the Dublin Airport Authority plc., DAA, and Cork Airport Authority plc., CAA, and I have no statutory functions in relation to them.

However, I am informed that in agreement with the CAA the DAA has recently appointed BDO Simpson Xavier, BDO, to assist the CAA in developing its business plan and appropriate financing proposals for the Cork Airport development investment in line with the requirements of the State Airports Act 2004, the provisions of the Companies Acts and the commercial and financial viability requirements of the DAA and CAA.

I await the outcome of this work because of its importance to facilitating the development of a dynamic, independent and financially sustainable Cork Airport. The Government objective of airport restructuring must be achieved in a manner which underpins the financial sustainability of all three State airports.

There is no link between the Government's plans for the future of Aer Lingus and the matters dealt with above.