Airport rates set to cover regional code

The Minister for Public Enterprise has issued a direction to the Commissioner for Civil Aviation to take into account the Government…

The Minister for Public Enterprise has issued a direction to the Commissioner for Civil Aviation to take into account the Government's regional development policy when drawing up his final proposals for airport charges.

Mr Bill Prasifka's draft recommendations proposed huge rises in airport charges at Aer Rianta's Cork and Shannon airports.

"I wish to advise you that I have decided that it is appropriate at this juncture to issue a direction under section 10, so that, as you reflect on your conclusions on the proposed cap determination, you are aware of the purpose and intent of Government regional policy development," the Minister, Ms O'Rourke, wrote in a letter.

Section 10 of the Aviation Act 2001, which set up the office of the Commissioner, provides that the Minister may give such policy directions to the commission as he or she considers appropriate to be followed by the commission in the exercise of its functions.

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That includes directions in respect of the contribution of airports to the regions in which they are located. It is understood that these directions are not instructions that the commissioner must follow.

In the letter, the Minister drew attention to the National Development Plan which, she said, provided a foundation for Ireland's economic and social progress and included the objective of "fostering of balanced regional development".

"The Government considers that our airports have a key role to play in supporting the national objectives of the plan," she said.

The Minister also highlighted the National Spatial Strategy, which she said would translate the broad approach to regional development into a more detailed blueprint for spatial development.

"In the light of these Government strategies, I am directing that the Commission make every reasonable effort to ensure that its final determination reflects the important emphasis which the Government has placed on balanced regional development," the Minister said.

A draft proposal on maximum airport charges released in June by the Commission for Aviation Regulation provides for an increase in charges at Cork Airport by a maximum of 94 per cent to £7.15 per workload unit, while Aer Rianta could increase charges by 37 per cent at Shannon to a maximum of £6.05 and by 9 per cent at Dublin to £4.96 per workload unit.

The workload unit is an international standard and equals the movement of one passenger, or 0.1 tonnes of cargo.

The rises will be linked to the State airports operator Aer Rianta achieving service levels which the regulator has concluded can be significantly improved.

The Commissioner has said that his proposed charges are a maximum cap. It is understood that Aer Rianta can charge less if it or its shareholder - the Government - believes there are compelling reasons to do so.

The Commission declined to comment on the letter. It is in the final stages of drafting proposals and will deliver its definitive decision on, or before, August 26th.