Opposition criticises timing of Aer Rianta Bill

The Opposition has condemned the Government for proceeding with legislation to break up Aer Rianta in the absence of new business…

The Opposition has condemned the Government for proceeding with legislation to break up Aer Rianta in the absence of new business plans for the airports at Dublin, Cork and Shannon.

Fine Gael's transport spokesman, Mr Denis Naughten, claimed the State Airports Bill would do little more than require the airports to prepare plans in order to prove the merits of the break-up of Aer Rianta. Labour's spokeswoman, Ms Róisín Shortall, said it was certain that the plan would result in an increase in landing charges at all three airports.

The Minister for Transport, Mr Brennan, insisted the break-up would foster strong growth in passenger numbers at Shannon and Cork.

He said the terms and conditions of the employment of current Aer Rianta staff were guaranteed in the legislation.

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He said on RTÉ that he was confident the new boards of the three airports would produce viable business for each of the airports.

"They're not going to come forward and throw their hands in the air and say this won't work. That's not their mood.

"Their mood is how do we make it work and I've every confident they will do that," he said.

Mr Brennan was speaking after the publication of the Bill, which aims to establish the Aer Rianta airports at Dublin, Shannon and Cork as independent autonomous companies.

A new Dublin Airport Authority will replace the Aer Rianta board,.

But there will be no transfer of assets from the Dublin authority to the new companies at Cork and Shannon until they produce business plans which are to the satisfaction of Mr Brennan and the Minister for Finance, Mr McCreevy.

While the Bill says this cannot happen before April 30th next year, it is understood that the transfer process could take up to 18 months.

This is to enable Dublin to build up its capital reserves before the assets at Cork and Shannon are transferred from its balance sheet.

Mr Naughten claimed the Bill was little less than a face-saving exercise to take political pressure off Mr Brennan and said the only reason for publishing the legislation was to implement the break-up by stealth without furnishing Mr McCreevy with the information he required.

The legislation says the aviation regulator, Mr Bill Prasifka, should have responsibility for charges at Dublin airport only.

It also says the Dublin Airport Authority should conduct an open public competition for the position of chief executive of the authority.

An Aer Rianta spokesman said it was a matter for the current chief executive, Ms Margaret Sweeney, to decide whether she should apply for that position.

The spokesman said the company's board would discuss the legislation at its routine monthly meeting today.

He said the board had agreed a 10-year business plan for the company last week and would not be making any further comment until after the meeting.

The president of SIPTU, Mr Jack O'Connor, said it was regrettable that the Government was pressing ahead with legislation that was "ideologically driven and ill-conceived".

He said it did not withstand any degree of objective analysis.

Ryanair's chief executive, Mr Michael O'Leary reiterated his call for an independent terminal at Dublin airport and said no-one should feel any regret at the demise of the Aer Rianta board.

"They are responsible for third-rate, third world airport facilities, ridiculous queues and car parks that are miles away from the terminal building," he claimed.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times