Airport debt ‘could reach €200m’

THE bill for the new Cork Airport development could eventually reach €200 million - at least €40m more than the figure being quoted at the moment.

The new figure was revealed at an extraordinary meeting of the South West Regional Authority’s Cork Airport Consultative Committee yesterday, which was called to discuss the debt issue confronting Cork Airport Authority (CAA).

An original guarantee from the Government was that with the break-up of Aer Rianta the Cork facility would be debt-free.

Yesterday’s meeting heard Dublin Airport Authority (DAA) could earn potentially €1 billion from the sale of the Great Southern Hotel chain, which it now owns - the DAA is against a debt-free status for Cork.

Chairman Cllr Michael O’Connell of the Labour Party, who is also chairman of the South West Regional Authority (SWRA), a public body responsible for the strategic development of the south west, also said it was unacceptable that the CAA would have to service half of the debt - around €80m.

“We had a strong commitment and undertaking that Cork would be debt free to create a level playing pitch, and nothing short of debt-free will deliver on that clear commitment,” he said.

The issue was not about the airport alone, but the regional economy, the growth of the Cork Metropolitan area as envisaged in the National Spatial Strategy, the region’s tourism future and the attractiveness of Cork as a location for foreign direct investment.

However, Fianna Fáil TD Noel O’Flynn said the reality was the debt would be closer to €200 million, although there would be no threat to airport jobs.

“I am advised that Cork will not be an independent authority unless the debt question is resolved. Cork Airport can remain for ever under the DAA unless that question is resolved.”

He confirmed to the Irish Examiner that the debt of €160 million should be “ring-fenced” and honoured by the Government, but any sum in excess of that should be negotiated.

One possible solution discussed at yesterday’s meeting was a lease-back arrangement from the DAA at a nominal sum, such as €100 per annum. This was put forward by Lord Mayor Cllr Deirdre Clune.

Mr O’Connell said they had already requested a meeting with the Minister.

Government and opposition TDs at the meeting agreed to press for Dáil time to debate the issue, which would also be the subject of special debates in both the city and county councils.