Airport talks broker asked to withdraw

THE company brokering talks on the €160 million debt impasse between Cork and Dublin airports has been asked to withdraw from negotiations because of a conflict of interest.

Labour and the Green Party called on business and financial consultants BDO Simpson Xavier to excuse itself from the talks after it emerged the firm had a previous commercial relationship with the Dublin Airport Authority (DAA).

However, last night, the company strongly defended its position.

BDO Simpson Xavier was engaged by the DAA to facilitate the drawing up of business plans for Dublin, Cork and Shannon airports after the break-up of Aer Rianta. The firm is also advising the DAA on the sale of the Great Southern Hotels chain.

But the DAA and Cork Airport Authority (CAA) are locked in a bitter dispute over who carries the €160m cost of Cork's new passenger terminal.

Labour TD for Cork North Central Kathleen Lynch said the revelations about BDO Simpson Xavier's previous role with the DAA could be seen as a conflict of interest.

"We should have had a neutral body to do the mediation, somebody who has no interest in the outcome one way or the other," she said.

Green Party TD Dan Boyle said the firm was compromised by the revelations.

"How can we have faith that this is an impartial process when the supposed honest broker has previously had a commercial relationship with the body whose actions it is now adjudicating?" he said.

Both Ms Lynch and Mr Boyle tried to raise the issue in the Dáil yesterday but were ruled out of order.

A spokesman for BDO Simpson Xavier said no conflict exists. He said the firm deals with all its clients with the utmost integrity and treats all with the strictest of confidentiality.

The firm would not have taken on these talks if there was a chance of a conflict of interests, he said.

A recommendation is expected before Easter.