Bernard Allen (Cork North Central, Fine Gael)
Link to this: Individually | In context

Question 130: To ask the Minister for Transport if he will intervene to resolve the ongoing dispute over the Cork Airport debt; and if he will make a statement on the matter. [12681/07]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 80 and 130 together.

As part of the necessary preparatory work for the separation of Cork under the State Airports Act 2004, DAA have been advised by consultants on the financial aspects mentioned. In doing so these consultants worked with Cork airport management on business planning requirements. The firm also advised on an appropriate financing proposal, which would facilitate the statutory objective of airport separation in a timely manner, consistent with the requirements of the State Airports Act 2004 and the Companies Acts. I understand that the outcome of this analysis was that Cork Airport could sustain a certain level of debt while remaining a very viable enterprise.

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. 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, 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.

Responsibility for the production of the business plans rests with the authorities. My function, under the Act, is to consider the plans, in conjunction with the Minister for Finance, once they have been submitted.