Bernard Allen (Cork North Central, Fine Gael)
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Question 202: To ask the Minister for Transport the consultants that have been appointed over the past three years to report on the break up of Aer Rianta; the position regarding the development of Shannon Airport and Cork Airport, particularly the development of the new terminal at Cork Airport and the issue of the debt burden. [9250/07]

Martin Cullen (Waterford, Fianna Fail)
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In 2003 my Department engaged the services of PriceWaterhouseCoopers (PWC) in association with Matheson Ormsby Prentice and Steer Davies Gleave to advise on the restructuring of the State Airports and on the drafting of the State Airports Act 2004. After the enactment of the legislation PWC were also engaged to advise me and the Minister for Finance on the implementation of the State Airports Act, and particularly on the development of Business Plans by the three Airports. The current position with regard to the development of Shannon Airport is that if it is to develop as a successful and sustainable business, it is clear that one of the major issues that must be addressed in its business plan is the airport's uncompetitive cost base. When that obstacle is overcome the Airport will have a real opportunity to develop new markets and to attract the airline customers that it needs for its commercial future. In this context, I am glad to see that the Labour Relations Commission has once again engaged with all parties to seek to resolve the outstanding issues following the recent rejection of a comprehensive package designed to deal with the costs issues at Shannon put forward by the Dublin Airport Authority.

The Cork Airport Development Project, which was completed last year, is comprised not only of a new terminal, but also a fire station, car parks, a combined utility building and new roads and pathways and associated works at a total cost of €184 million. As I have said before, the funding of these developments will have to take account, not only of what is commercially and financially feasible for Cork Airport, but also what is commercially and financially feasible for Dublin Airport. If the Cork Airport Authority is to achieve autonomy in the foreseeable future, it will have to accept responsibility for a reasonable portion of the outstanding debt of €200 million, in return for the substantial assets to be transferred to it on separation. In deciding what level of debt is to be borne by Cork, it will have to be manifest to all concerned that it is a manageable debt burden that would not put at risk the airport's commercial future. The future plans for both Shannon and Cork as independent airports must have regard to the capacity of each airport to contribute to its own capital investment programme.