DAA to service debt until airports separate
With Transport Minister Noel Dempsey expected to make an announcement in the coming days on the delay of the break-up, Cork South Central Fianna Fáil TD Michael McGrath said he had met with Mr Dempsey to discuss the airport and the need to give the Cork board a “degree of autonomy” in the short term to enable them to make decisions affecting the airport.
Mr McGrath said, while it was disappointing the economic conditions could not facilitate separation at present, he still believed Cork airport would be best served as an independent legal entity. “However, for an independent Cork airport to prosper, it is essential that the economic conditions are favourable. In the present circumstances, it would seem immediate legal separation is not in Cork airport’s best interests. Should the minister decide to postpone the separation, it is important to note the debt associated with Cork airport will remain with the Dublin Airport Authority and will be serviced by DAA.
“The debt cannot be transferred to Cork until the full legal separation takes place. It has been suggested that Cork airport will not get independence, but will get the debt. This is not the case.
“In anticipating a possible deferral of the legal separation, I have in recent days spoken to the Minister for Transport, Noel Dempsey, about the need to give the Cork board a degree of autonomy in the short term to make decisions affecting the airport. I am satisfied the minister has taken this fully on board. We have individuals with significant expertise on the Cork board and they must be given an opportunity to make decisions on behalf of the airport pending full legal separation at the appropriate time.”
However, other TDs were not so accepting of the delay in the separation of the airports.
“What we have seen here over the years is Government prevarication on two critical issues to do with Cork airport. Firstly, the debt burden and, secondly, the independence,” said Labour TD Ciaran Lynch. “I believe and the business community in the southern region believes, that despite the economic downturn, it would be best served if Cork airport was made independent. In the current circumstances, we need a strong economic plan for the southern region. The best way that can be done is by Cork airport being independent not hamstrung under the Dublin Airport Authority.”
Tom O’Driscoll, a Cork city councillor and member of the South West Regional Authority’s airport consultative committee said that, since the break-up was first touted in 2003, there had obviously been considerable unforeseen difficulties, of which the Cork debt was only one.
He said Shannon, which was losing up to €1m a month, was being given financial support by the Government and could not survive in the current climate.
“Cork would be much stronger financially. It is OK at the moment, but if any of the main airlines were to cut back, it would be in trouble.”
