Dempsey cronyism claim on airport boards decision

SIPTU has accused Transport Minister Noel Dempsey of political cronyism for refusing to consolidate the boards of the country’s three main airports run by the Dublin Airport Authority into one — even though the DAA is looking for €40 million in cost savings.

The trade union’s civil aviation branch said it had received a letter from Mr Dempsey indicating that he intends to press ahead with the appointment of three boards to run the DAA.

Branch spokesman Dermot O’Loughlin said the minister’s decision means there will be 31 board members running the three airports, at Dublin, Shannon and Cork.

“The minister’s indications defy logic. Aside from the unnecessary triplication of costs, the more worrying feature is that this decision comes at a time when many jobs at the airports are under threat as the company wants to reduce payroll costs by €40m,” he said.

“It is quite simply shameful that any workers at the airports could have their jobs terminated or diluted in order that the minister’s extravagance can be fulfilled to satisfy what many people will view as an act of political cronyism.”

The DAA has told unions it faces a shortfall of up to €70m in earnings for 2010.

In response, the Department of Transport said a decision on the separation of the airports had been deferred until 2011 and revised governance arrangements had been agreed between the boards of the airports.

A spokeswoman said “the minister considered all options and concluded that the continuation of the boards would be in the best interests of each of the airports until such time as he is in a position to decide on the issue of airport separation under the State Airports Act 2004”.