Olivia Mitchell (Dublin South, Fine Gael)
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Question 194: To ask the Minister for Transport if he will make representations at EU level pointing out the competitive disadvantage imposed on Ireland by prohibiting a bilateral agreement pending the completion of the stalled EU wide open skies deal with the US in view of the fact that other EU countries already have bilateral open skies agreements with the EU. [40869/06]

Martin Cullen (Waterford, Fianna Fail)
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The liberalisation of air transport services between Ireland and the US would deliver major benefits for Irish business and tourism. I have drawn to the attention of the Commission and colleagues in the Council of Ministers that the conclusion of an open skies agreement would have particular benefits for Ireland compared to Member States (15 of 25) that already have open-skies agreements with the US. Those Member States already enjoy an advantage in unrestricted access to route rights for the development of air services to and from the US.

Following the agreement reached with the US Authorities to providing for an orderly change to the Shannon stop arrangements in the context of the proposed EU-US Open Skies agreement it is very disappointing that that agreement has still not been finalised. This is due to problems that have arisen on the US side in making changes to the US rules on ownership and control restrictions for airlines. Following the US mid-term elections earlier this month it is widely perceived that the rule-making procedures will, at a minimum, be delayed further. I should point out however that the US administration has not yet stated how it intends to proceed in this matter following those elections.

I informed Government in September this year of my intention to pursue all possible avenues to provide for the entry into force at the earliest possible date of the EU-US open skies agreement including the transitional arrangements relating to Ireland already agreed between the EU and the US I also indicated that, in the event that an EU-US agreement is not achievable within a reasonable timeframe, I intend to seek to implement, in accordance with applicable Community law, the essential elements of the transitional arrangements relating to Ireland by way of an amendment to the Ireland US bilateral air services agreement.

While allowing some time for clarification of the intentions of the US administration following the US elections, I am considering all of the options to progress this matter as soon as possible including the legal issues arising under Community law in relation to an amendment of the Ireland US bilateral air services agreement.