Minister for Transport Martin Cullen has been asked by Cork civic and business leaders to clarify whether the new Cork Airport Authority will have to carry the €160 million cost of a new terminal.
Lord Mayor of Cork Deirdre Clune and president of the Cork Chamber of Commerce Roger Flack said yesterday the Cork Airport Authority (CAA) was promised in 2003 that it would take over the airport debt-free.
Ms Clune said the then minister for transport Séamus Brennan said all contractual arrangements would be transferred to the Dublin Airport Authority. She called on Mr Cullen to ensure the CAA was not saddled with the debt as promised by his predecessor.
She said in his statement in July 2003, Mr Brennan said existing debts at Shannon and Cork, including the debt associated with the major new investment programme at Cork, would not be assigned to the new companies, but would remain at Dublin airport.
Ms Clune said she wanted Mr Cullen to honour the commitment made by Mr Brennan.
"If Cork airport is to compete on a level playing pitch with Shannon airport and fulfil its vital infrastructural role in regional development, it is essential that the new Cork board does not inherit an unfair debt."
Mr Flack said the business community and Cork Chamber of Commerce were very concerned that the new authority would be saddled with the €163 million debt, as it could have very serious consequences for the competitiveness of the airport.
"If Cork is going to continue to benefit from multinational investment, access is vital, and if this debt causes the airport to be uncompetitive it's going to have consequences for regional development - the Government needs to look at the bigger picture on this," he said.
The call on Mr Cullen to clarify the Cork airport debt situation came as the CAA reported that 2.729 million passengers used the airport in the last year, a 21.1 per cent increase on business on 2004 figures.
According to a statement by the airport authority, 34 scheduled destinations were served by 15 airlines, with the London market showing "an impressive 27.1 per cent" rise in business.
"The London market accounted for 67 per cent of all UK traffic in 2005, highlighting the popularity and importance of the service. "Significantly, 2005 marked the first year that Cork airport handled over one million passengers on the London route."
A spokeswoman for Mr Cullen said the Minister had met with the CAA last month, and was anxious to resolve the issue.
Any resolution would have to be considered in the context of the other airports and aviation policy, she added.