Cullen ‘washing hands’ of airport debt

FINE GAEL TD Bernard Allen has again accused the Government of attempting to renege on the commitment to unburden Cork Airport of its €200 million debt.

In the Dáil this week, Mr Allen said his queries regarding the issue were swept aside by Transport Minister Martin Cullen.

He had asked the minister to furnish details on the arbitrator appointed to mediate between Cork and Dublin Airport Authorities on the projected €200m debt arising from the construction of a new terminal at Cork Airport, and about consultants appointed to carry out a business plan for Cork, Shannon and Dublin Airports

In his response the minister said: “The appointments referred to by the Deputy are operational matters for the Dublin Airport Authority plc (DAA), Cork Airport Authority plc (CAA) and Shannon Airport Authority plc (SAA) and I have no statutory functions in relation to them.

“I am informed that in agreement with the CAA the DAA has recently appointed BDO Simpson Xavier (BDO) to assist the CAA in developing its business plan and appropriate financing proposals for the Cork Airport development investment, in line with the requirements of the State Airports Act 2004, the provisions of the Companies Acts and the commercial and financial viability needs of the DAA and CAA.

“In due course, and in accordance with the provisions of the State Airports Act 2004, business plans for all three airports will be presented to myself and the Minister for Finance for our consideration.”

Deputy Allen said it was evident from the reply that by refusing to give detailed information the minister was involved in “another hand-washing exercise.”

Former Transport Minister Seamus Brennan had indicated that the construction costs of the new terminal at Cork Airport would not be a burden on the CAA.

But there was concern the Government is planning a u-turn on their commitment which could leave Cork Airport saddled with anything up to a €200m debt.

“A mediator has been appointed by Mr Cullen to deal with this issue even though we haven’t been given the terms of reference that the mediator is working to,” Deputy Allen said.

He said a failure to honour the commitments would seriously inhibit Cork’s capacity to develop the airport to its full potential.

If this matter is not sorted out, the debt burden on Cork will have the most serious consequences and implications because it is inevitable that the burden will be passed on through increased costs to the carriers and travelling public, he reiterated.

Mr Allen said a meeting between Mr Cullen and all Cork TDs should be convened as a matter of urgency.