Government U-turn - Passengers to bear cost of airport debt

IF Government commitment to balanced regional development has any meaning, it is crucial to counter-balance Dublin’s sprawl, now skewing development across the country.

Presumably, that bald economic fact of life was in the mind of former Transport Minister Seamus Brennan when, announcing the break-up of Aer Rianta, he gave an unequivocal pledge that Dublin airport would take on the debts of Shannon and Cork airports.

To quote his words, the major regional airports would begin life as “independent” and “debt-free” entities. Spelling out government policy, he emphasised that the Dublin Airport Authority (DAA), the country’s biggest and most profitable operation, would pick up the bill for Shannon and Cork, counter-balancing this by selling off the Great Southern Hotels group.

Since then, however, Minister Martin Cullen has taken over the transport portfolio, the Brennan promise has been torn up, and the country’s main regional airports have been left with heavy debts. Mr Cullen is of the view that Cork and Shannon should bear their part of the debt burden since Dublin itself will have debts of €1 billion when its expansion and development programmes are completed.

The coalition’s clear message for those in the mid-west and southern regions is that Dublin comes first and foremost. For the umpteenth time, this administration has walked away from pledges not worth the breath they were uttered on.

This administration can be fairly accused of being long on promises but short on action. To an increasing degree, rhetoric has become the currency that carries most weight.

With a General Election looming, it was hardly surprising, therefore, that cracks have begun to appear in the facade of political cohesiveness and unity. Among the first to break ranks, Cork PD Deputy John Minihan yesterday delivered a slashing attack on the flagrant betrayal of the promise that Cork Airport would not be debt ridden.

With the fortunes of the PDs continuing to wane in the opinion polls, he knows his Dáil seat is in the balance. More than anything, perhaps, that explains his vituperative reaction to news that the Government is leaving the airport with debts of €100 million in the wake of a €220m re-development programme undertaken by Aer Rianta.

The DAA stands accused of asset stripping and also of riding rough shod over the assurance that both Cork and Shannon would start with clean balance sheets.

Significantly, ex-PD leader and current Health Minister Mary Harney is on record as saying that if promises were given relating to Cork Airport, then they should be honoured.

A much different line is coming from local TD and Enterprise Minister Micheál Martin who says the airport should go it alone, pay its debts and free itself of DAA control.

Storm clouds are also gathering over Shannon following the overwhelming staff rejection of a €35 million restructuring plan to cut costs. With the unions in combative mood, the ICTU is seeking a meeting with Transport Minister Cullen following the DAA’s stubborn refusal to meet it for talks on Shannon which has debts of €100 million.

The question the Government has failed to answer is who will end up paying the bill? Clearly, if both Cork and Shannon are saddled with heavy debts, they will be forced to pass the extra costs onto passengers using the airports.

Inevitably, that means they will be hamstrung from the outset and hard put to compete in the battle for airline business. So much for regional development!