State ‘frustrating Aer Rianta break-up’

THE Government was accused last night of frustrating the break-up of Aer Rianta by not supporting a State-appointed board trying to run one of the country’s main airports.

The Cork Airport Authority (CAA) will hold an emergency meeting this morning after it was controversially cut out of a mediation process designed to resolve a bitter row with the Dublin Airport Authority (DAA) over who pays for Cork’s new passenger terminal.

A CAA source said board members viewed the development with alarm.

“Either the DAA doesn’t recognise Government policy on the break-up of Aer Rianta, or it doesn’t recognise the standing or status of the CAA,” the source said.

“The Government must get off the fence on this issue.”

It is expected the CAA will today call on Taoiseach Bertie Ahern and Transport Minister Martin Cullen to clarify the situation.

The CAA and DAA were appointed after the break-up of Aer Rianta was announced in 2003.

Both, however, have been locked in a bitter dispute for months after the DAA refused to carry the cost of Cork’s new passenger terminal, due to open on May 12.

This is despite a Government pledge in 2003 that Dublin would carry the debts of both Cork and Shannon after the break-up.

The stance leaves the CAA facing debts of up to €80m.

In what was described as a blatant Government U-turn, Mr Cullen sought the appointment of independent consultants to mediate.

The DAA appointed BDO Simpson Xavier (BDO).

Despite concerns in Cork that BDO could have a conflict of interest given its previous business relationship with the DAA, the minister urged the CAA last September to engage in the process. They agreed and established a sub-committee.

Enterprise Minister Micheál Martin called two weeks ago for time and space to allow the mediation process to take place.

But BDO told the CAA sub-committee chairman on Friday that it would not be engaging with its members.

CAA chairman Joe Gantly said he was extremely disappointed with BDO’s stance.

Fine Gael called on Mr Cullen to intervene immediately.

Labour TD Kathleen Lynch said BDO’s decision not to engage with the CAA was unacceptable.

“We should be confident of having a neutral body to do the mediation and we should be confident that the interests of Cork Airport are not ignored in the process,” she said.