Ahern signals willingness to negotiate airport debt
A clearly under pressure Mr Ahern said that if a report commissioned by the Cork Airport Authority (CAA) shows that it can’t carry €100m of debts, then negotiations can take place.
He said he didn’t want to be tied to a final figure.
“It could be more or less. The big issue is what could Cork take financially and they want to assess that. In the meantime, the entire debt is being serviced by the Dublin Airport Authority (DAA),” he said.
“We will try and get a negotiated decision between the Cork Airport Authority (CAA) and the DAA, and I would be satisfied that can be achieved.”
Mr Ahern welcomed the hardline statement from the airport board on Thursday night which effectively rejected his Government’s attempt to saddle the facility with a €100m debt.
The CAA said it will hire its own consultants to draw up a long-term strategic plan for the airport.
That plan will be used to negotiate “satisfactory terms and conditions” with the DAA, the Department of Transport and other bodies, to secure the long-term independent viability of the airport, it added.
Mr Ahern hinted at his own belief that Cork Airport was financially robust.
“Cork Airport is in my view a very viable airport, growing massively and developing massively,” he said. “The DAA and CAA both have to make sure that they have viable futures.”
“I welcome the Cork board’s decision. There should be total engagement and cooperation, there will be from the Government.”
Pressed on the Government’s 2003 debt-free pledge, Mr Ahern said: “We are where we are. Let’s take it from here. I’ve said what I’ve said... The board put out a statement. I welcome that. We’ll work with that.”
He then ended the press briefing abruptly and walked away from reporters.
Fine Gael leader Enda Kenny yesterday accused the Government of breaking its debt-free promise.
Speaking in Limerick, he said: “The fact of the matter is that the Government made it clear that both Cork and Shannon airports would be clear of debt. This is another example of this Government not being able to keep its word.”
Tánaiste Michael McDowell denied the Government was split on the issue.
“I don’t think there is a split in Government, but I think the Progressive Democrat’s position is that Cork Airport should be first of all independent of the other airports in Ireland, and secondly be in a position to compete economically, without being saddled with a debt that would make them uneconomic.”
Cork FG TD, Bernard Allen, said hiring more consultants will delay the issue beyond the general election.
“It would be comical if it wasn’t so serious. The consultants are the winners again,” he said.
Later, the Taoiseach met a delegation of six city councillors and the mayor of Co Cork, John O’Shea, at City Hall to discuss the issue.
In a 20-minute meeting chaired by Enterprise Minister Micheál Martin, and also attended by Junior Environment Minister Batt O’Keeffe, Mr Ahern reiterated an earlier assertion that the CAA has two choices — assume the €100m debt and operate independently, or stay under the control of the DAA until the debts can be cleared.
Speaking afterwards, Cllr Mick Barry, said the Taoiseach, “stalled and stonewalled... and legged it out the door to his next engagement.”
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