Harney says best tender will run second terminal

Tánaiste Mary Harney insisted today the decision on who would run Dublin Airport's second terminal was not a foregone conclusion.

The new terminal will be owned by the Dublin Airport Authority (DAA) and built by 2009, but there will be an open tendering process to decide who will operate it.

The DAA has signalled its intention to apply to run this terminal.

The announcement on the terminal was made yesterday after months of difficult talks between Fianna Fáil and the Progressive Democrats.

Ms Harney, whose party wanted a new independently built, owned and operated terminal to foster competition at the airport, refused to concede the decision was a political defeat.

"The fact is there's going to be a competition to operate the new terminal at Dublin, just as there was a competition for Luas," Ms Harney said this morning. "Many people at the time thought CIÉ would win that competition, but of course they didn't.

"It's no foregone conclusion that the Dublin Airport Authority will be running this new terminal," she told RTÉ's Pat Kennyshow. "They'll only succeed if they have the best tender.

"We have an expert group that will oversee what's required, which means it won't be over-spec, it won't be a Taj Mahal, because consumers will have to pay for that through higher fares.

"In an ideal world of course, I would have preferred a different option, there's no doubt about that, but others would have preferred a different option too," the Tánaiste said.

She said her party had insisted on having a tender process. This process was "the price" for her agreement to the deal.

The DAA said today it was "ready, willing and able" to build a second terminal on one of two possible sites on its own land, close to the existing passenger terminal.

"Our preliminary assessment indicates a likely range of €130 million to €190 million for the terminal, depending on its agreed level of complexity," said DAA chief executive Declan Collier.

"The additional cost of site preparation and support infrastructure such as roadways, aprons and contact stands is likely to be in the range of €70 million to €100 million." The DAA said it could build the new facility within four years.

The new terminal is likely to become fully operational in 2009 when Dublin airport passenger numbers will be over 22 million.

The Irish Congress of Trade Union's Paul Sweeney said this morning unions had feared that any new operator would be a Gama-style operator but said this no longer looked as if it would be the case. He described plans for a third terminal as "bananas" but said he thought it would probably be dropped in time.

He said his organisation's reaction to the announcement that a majority stake in Aer Lingus was to be sold was one of "grave disappointment." He said it was clear the Government had not learned from what he described as the "debacle" of the sale of eircom.

The Chambers of Commerce of Ireland (CCI) today insisted work practices at the new terminal would have to be reformed for it to succeed. The CCI called on Minister for Transport Martin Cullen to publish details of a deal reached with Ictu last year on work practices. It is concerned this deal, which refers to the existing terminal, will apply to the new building.

"We have no issue with protecting pay and conditions," said CCI chief executive John Dunne, "But it is an absolute requirement that work-practices are reformed in the new terminal if it is to properly serve air transport users.

"If these work practices are protected under the agreement between Ictu and the Government ... then Terminal Two should not be allowed to go ahead unless and until this matter is clarified."

Sitpu's National Industrial Secretary Mick Halpenny welcomed the decision to allow the DAA to build a second terminal but said the union wanted clarification on whether the decision meant there would be competing terminals.

The Irish Hotels Federation (IHF) welcomed the Government decision, saying Dublin Airport was a "vital element" of the national infrastructure of country heavily reliant on tourism.

"A highly efficient and cost-effective national airport is essential to meeting airlines and travellers' needs, creating a good first impression for visitors to Ireland, and ensuring a positive experience for them upon arrival and departure," said IHF Chief Executive John Power.