Leaders oppose Cork airport debt

Cork politicians and business leaders have expressed strong opposition to the possibility that Cork Airport might be left with significant debt following the building of its new terminal.

The Cork Airport Authority (CAA) could be facing a debt of €80 million, which represents half the cost of the new terminal building, following the break-up of Aer Rianta. The Government had previously promised that Cork Airport would start its new commercial life debt-free.

An emergency meeting of the South West Regional Authority's (SWRA) airport consultative committee was held yesterday to discuss the controversial issue.

Committee chairman Michael O'Connell said: "We have that commitment in writing in late 2003 that Cork Airport would be fully developed and would be debt-free going forward. If that situation does not arise what will happen in the future is that the people of Cork will have to pick up the tab."

Mr O'Connell said the Dublin Airport Authority (DAA) should pay for the new terminal at Cork airport and argued that the company could afford to do so, having made a profit of more than €10 million last year.

Meanwhile, Cork Fianna Fáil TD Batt O'Keefe claimed that Minister for Transport Séamus Brennan may have made a mistake when he promised that the airport would start independent operations without debt.

"I have a copy of a statement that Séamus Brennan made in the Dáil in June 2004 where he clearly outlined that there were legal constrictions and that Dublin airport could only take on the total debt if their distributable assets matched up and that this was enshrined in company law and that legally there was no other way of doing it."

However, Fine Gael MEP for Munster Simon Coveney said it was nonsensical to suggest that the Minister would have made a commitment that the DAA would take over a debt of up to €150 million without checking out its legal status.

John McAleer, director of the SWRA, said regardless of who picked up the costs, Cork could not afford to be saddled with such a debt.

Talks between the Cork and Dublin airport authorities are ongoing in a bid to strike a deal on how the costs of Cork's terminal building are to be shared. The talks mediator is expected to report to the Minister for Transport next month.