FG opposes Cork airport debt

Fine Gael TDs in Cork are strongly opposed to the appointment of a ministerial advisor to help settle a dispute over the local…

Fine Gael TDs in Cork are strongly opposed to the appointment of a ministerial advisor to help settle a dispute over the local airport's debt.

Dublin, Cork and Shannon airports are due to be separated into independent commercial entities under the Government plan to break up Aer Rianta.

But when legislation was being prepared to effect the break-up in 2003, then minister for transport Séamus Brennan said Cork and Shannon would begin as debt-free entities.

However, Minister for Transport Noel Dempsey yesterday appointed former Ictu general secretary Peter Cassells as a mediator in a dispute between the airports' boards over the level of debt to be devolved to Cork after the planned separation.

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A consultancy firm last year recommended Cork Airport take on debts of €50-€60 million to help pay for the recent construction of a new terminal and other development work which cost €220m.

The CAA is understood to have submitted a business plan to Government saying it could shoulder a €60m debt in line with recommendations of a aviation consultancy firm last year.

But the Dublin Aviation Authority (DAA), which has overall responsibility for Cork and Shannon, is thought to want Cork to take on around €100m in debt.

Both authorities yesterday welcomed the appointment of Mr Cassells but local TDs were angry at what they say was the Government's broken promise.

Mr Demspsey has asked Mr Cassells to report by March 7 thand if settlement cannot be reached then he will make a final decision which, he said, could involve scrapping the plan for Cork's independence.

Fine Gael's Cork South Central TD Simon Coveney, accused Mr Demspey issuing a "veiled threat" to the CAA.

He said: "The issue is not about the ability to pay: Cork airport should not be punished for profitability. The issue is whether a political commitment given by the government to the people of Cork is worth the paper it is written on."

Constituency colleague and Fine Gael spokeswoman on innovation Deirdre Clune welcomed Mr Cassells appointment but said his job was to save the Government's blushes.

"Fianna Fáil has totally messed up its handling of Cork Airport's move towards independence ... If the Government insists on smothering Cork Airport at birth with debt, then they must accept the consequences," Ms Clune said.

The party's TD in Cork North Central Bernard Allen said Mr Demspey was "passing the buck", which he said was a "common tactic of this Government"