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DAIL QUESTIONS 3rd October 2001

Dail Question
No: 234

*To ask the Minister for Public Enterprise if she will use her powers under Section 10 of the Aviation Regulation Act, 2001, to give a general policy direction on the contribution of airports to the regions in which they are located; and if she will ensure that Cork Airport does not suffer as a result of recent decisions to raise airport landing charges.

-Bernard Allen. For WRITTEN answer on Wednesday, 3rd October, 2001.

Dail Question
No: 235

*To ask the Minister for Public Enterprise if she will make a statement on the Aviation Regulator's Report and its implications for Aer Rianta; and the position regarding proposals to build a new runway at Dublin Airport.

-Nora Owen.*For WRITTEN answer on Wednesday, 3rd October, 2001.
Answered by the Minister for Public Enterprise
(Mary O'Rourke)

REPLY

I propose to answer Questions Nos. 234 and 235 together.

The Aviation Regulator was established on a statutory basis earlier this year, pursuant to the Aviation Regulation Act, 2001, for the purpose of determining, inter alia, an appropriate maximum level for airport charges. In exercising his functions, the Regulator acts on a completely independent basis as provided for in the Act.

There was an extensive debate on the proposed role of the Aviation Regulator when I was piloting the draft legislation through both Houses of the Oireachtas last year. All sides contributed strongly and constructively to that debate and I accepted several useful amendments which were proposed both by Government and opposition parties. I believe that the Act is all the better for those amendments.

As regards the contribution of the airports to their regions, I issued, prior to his final determination, a direction under Section 10 of the Act to the Aviation Regulator, so that he would be aware of the purpose and intent of Government regional development policy. In that context I referred particularly to the objectives of the National Development Plan and the National Spatial Strategy and directed that the Regulator make every reasonable effort
to ensure that the final determination reflects the important emphasis that the Government places on balanced regional development.

I am aware that the final determination of the Regulator, which was published on 27 August, would allow Aer Rianta to levy higher maximum charges at Shannon and Cork Airports compared to Dublin. However, there is nothing in the Regulator's determination which obliges Aer Rianta to levy the permitted maxima and indeed Aer Rianta have already stated publicly that it intends that Cork and Shannon Airports remain as competitive as Dublin Airport.

As the Deputies will be aware, Aer Rianta does not accept the recent determination of the Aviation Regulator and the Company has informed me that the Board has decided to appeal the decision of the Regulator and to pursue the matter through the courts.

Aer Rianta's proposals in relation to the development of the three State airports are in the first instance a matter for Aer Rianta, which has statutory responsibility to manage, operate and develop the airports and to provide such facilities and services as it considers necessary for aircraft and passengers. My Department has already asked Aer Rianta for a considered view on the implications of the Regulator's determination for the future development of the Company.

With regard to the proposed new runway at Dublin Airport, the position remains that Aer Rianta have commissioned an environmental impact assessment in connection with the proposed new runway.

The global downturn in the aviation industry will, of course, have implications for the level of passenger traffic through Dublin Airport, at least in the short term, and this in turn may impact on Aer Rianta's previous timescale for the second runway at Dublin Airport. Obviously, the Company will need to re-examine this matter.

Dail Question
No: 236

*To ask the Minister for Public Enterprise the position regarding a second terminal in Dublin Airport; the procedures which will be followed if such a project is to proceed; and if she will make a statement on the matter.

-Nora Owen.
*For WRITTEN answer on Wednesday, 3rd October, 2001.

Answered by the Minister for Public Enterprise
(Mary 0 'Rourke)

REPLY

Given the dramatic impact of the recent terrorists attacks in the US on the global aviation industry, there is a range of urgent new priorities concerning the aviation sector which are being urgently addressed by the Government and by Governments throughout the world.

While the concept of a second, independent terminal at Dublin Airport to compete with Aer Rianta's terminal facilities is not new, it does not rank among the immediate priorities that must be addressed in the radically altered aviation environment in which we now find ourselves.

Nevertheless, as the Deputy is aware, I have not adopted any particular ideological position in relation to the concept of competing terminal facilities at Dublin Airport. There are a number of complex considerations both for and against that concept on which my Department has had consultancy advice on more than one occasion in recent years. Generally speaking, that advice did not confirm the value of a competing second terminal as a viable proven concept in practice, but I stress again that I maintain an open mind on the matter.

If the concept of a second terminal was to be endorsed either by this or any future Government, I have already stated on a number of occasions that it would call for an open and transparent process to determine who will provide the competing terminal. It would also be necessary to determine in advance the detailed operational, legal, regulatory and commercial interface with the wider operation at Dublin Airport.