Framework for break-up of Aer Rianta agreed

The broad framework for the legislation paving the way for the break-up of Aer Rianta has emerged following extensive interaction with the company and its advisers, the Minister for Transport has insisted.

Mr Brennan said that it remained the Government's position that independence provided the best chance for each airport to be a viable entity, responding effectively and efficiently to the business opportunities in their regions and, consequently, able to maintain the terms and conditions of employees.

"The restructuring proposals will not result in any downgrading of the terms and conditions of Aer Rianta employees on transfer to the new independent airport authorities.

"In line with commitments given to the ICTU, appropriate provisions have been included in Section 12 of the legislation to this effect," said Mr Brennan.

Introducing the State Airports Bill 2004, he said the three State airports operating as separate successful State companies had the potential to grow their business and enhance shareholder value.

Airports similar in size to Cork and Shannon had been successful elsewhere, and the Government was confident that both independent airports would emulate best practice in comparable airports of similar scale and size.

He said Dublin Airport was a European-scale airport, and had made a vital contribution to the national economy.

He believed that a successful Dublin Airport would also be good for the airport's management and employees who were the key to steering it through the many challenges which now lay ahead.

The Fine Gael spokesman on transport, Mr Denis Naughten, welcomed the "belated" publication of the Bill.

"This is the first occasion on which the Government has put pen to paper on this issue. It has dragged its heels in respect of the national aviation policy.

"The Minister has consistently stalled on this process since taking office."

He added that Fine Gael had repeatedly called on the Minister to publish a White Paper on the future of the aviation sector to allow a proper debate and to flesh out the Government's skeletal aviation policies.

The Labour spokeswoman on transport, Ms Róisín Shortall, accused Mr Brennan of spinning a number of myths about Aer Rianta. One of them was that the State could not afford to continue to subsidise the company.

"The fact is that Aer Rianta has returned a surplus each year. It has given back €400 million to taxpayers in the past 20 years."

Another myth was that the break-up would lead to lower charges.

"The fact is that charges have been found by all expert reports to be the lowest in Europe."

The Green Party spokesman on transport, Mr Eamon Ryan, claimed the Bill made bad sense for the three airports, and would be bad for the economy.

"Mr Brennan has said he wants the break-up so that Shannon and Cork airports can attract a new business.

"But why does he not go ahead and instruct the current chairman and board of Aer Rianta to promote Cork and Shannon immediately within the company's current structures?"

The Sinn Féin spokesman on transport, Mr Sean Crowe, claimed that the Minister's elaborately-signalled proposals had produced nothing more than a rewrite and renaming, though at a considerable cost in financial terms.

He said it also meant stress for the company's employees and trade unionists.