Cork authority defers decision on liability of airport debt

Cork Airport Authority (CAA) has deferred a decision on a consultants' report recommending that the airport carry €50-€60 million of the €220 million airport debt after the majority of board members refused to consider the report at a recent meeting.

The report was drawn up by a British consultancy company after CAA board members rejected outright an earlier proposal from the Government that Cork pay €100 million of the debt incurred on the new terminal and other facilities.

The Irish Timesunderstands that CAA chairman Joe Gantly sought to obtain agreement for consultants' recommendations at a meeting of the board last month but that the board opted not to accept it because it failed to take into account future development of the airport.

Some 11 of the 14 members of the CAA are believed to have voiced opposition to the report on the basis that they had sought a detailed strategic business plan for the airport's future development and not just an analysis of the debt issue.

According to one informed source, the report did not factor in concerns regarding the need for a possible runway extension as well as further extension of the new terminal building which is already close to its intended capacity of three million passengers a year.

The €220 million debt owed by CAA to the Dublin Airport Authority following the break-up of Aer Rianta consists of some €90 million owed on the new terminal building and a further €90 million on new ancillary facilities as well as a long-standing debt of €40 million.

However, a majority of the CAA have held to the position promised by then minister for transport Séamus Brennan in July 2003 that Cork airport would start its independent existence of Dublin debt-free upon the break-up of Aer Rianta.

Last February, the CAA wrote to Taoiseach Bertie Ahern to convey its opposition to a proposal that Cork would pay €100 million. This was presented at a meeting between Mr Ahern and Minister for Enterprise, Trade and Employment Micheál Martin with Mr Gantly.

News that the consultants were recommending that Cork pay €50-€60 million was strongly opposed by Progressive Democrats Senator John Minihan, who has distanced himself from the Government's contention that Cork should pay part of the debt.

Mr Minihan called for the consultants' report to be made public as it was unclear how they had reached the figure of €60 million and he expressed concern that such a large level of debt would prevent Cork airport from developing to its full potential as an independent airport.

"I cannot understand how the consultants arrived at this amount; we need to know on what basis the amount was calculated. The people of Cork have a right to know. This report must be published now.

"The party I represent has campaigned long and hard for an independent, debt-free airport when others were lukewarm on the idea.

"A €60 million debt will sabotage the chance of Cork to compete for business on an equal basis with Dublin and Shannon.