Michael McGrath (Cork South Central, Fianna Fail)
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Question 287: To ask the Minister for Transport the steps he is taking to establish Cork and Shannon Airports as independent, debt-free authorities in line with the State Airports Act 2004 and previous written commitments by his Department. [29494/07]

Noel Dempsey (Meath West, Fianna Fail)
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The State Airports Act, 2004 provides the framework for the establishment of Shannon and Cork as independent airports. Under the Act, both the Minister for Finance and I will have to be satisfied as to the state of operational and financial readiness of the three airports before any vesting of assets can take place.

The actual timing of airport restructuring will depend on the creation of the appropriate conditions that will ensure the financial sustainability of each of the three State Airports. The restructuring process will require coordinated strategies for the achievement of operational and financial readiness of each airport. In this regard, the Dublin Airport Authority (DAA) has a key role to play in finalizing the financial framework and coordinating the individual business plans for the three airports that will enable airport separation to take place.

Shannon Airport Authority (SAA) recently submitted its business plan to the DAA. I understand that there will shortly be engagement between the two parties on the plan content.

In parallel with this I would also expect a similar engagement to occur between the Cork Airport Authority and the DAA relating to the Cork airport business plan once that plan has been submitted to the DAA.

Clearly, the debt issue is crucial to the Cork business planning process and there will have to be agreement on this point between the Cork Airport Authority and the Dublin Airport Authority DAA, before the Cork business plan can be completed and submitted to the Minister for Finance and myself.

The Government's position is that the funding of the new terminal and other works at Cork Airport 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 the Dublin Airport Authority.

Subject to satisfactory progress being made on the plans, I await the DAA's overall considered views on airport separation to enable the plans to be examined by the Minister for Finance and myself.