Drawing up an airports policy

The prospect of Dublin, Shannon and Cork airports grinding to a halt has receded

The prospect of Dublin, Shannon and Cork airports grinding to a halt has receded. But the threat to the Irish tourist industry and to the economy at large has not gone away. Yesterday's disruption, when flights were suspended and passengers delayed because of hour-long protest meetings, provided an unfortunate taste of what may be in store for the travelling public.

At the heart of the industrial unrest is a determination by the Minister for Transport, Mr Brennan, to break up Aer Rianta into three separate companies and to generate greater competition and efficiencies at the airports.

A degree of restraint has been exercised by SIPTU, which represents 70 per cent of Aer Rianta workers. Its members have agreed to seek discussions with Mr Brennan on the basis of a 10-point agenda which includes a review of the proposal to break up the company; guarantees on job security and work conditions into the future; the continuation of unified negotiating and collective bargaining structures; and the retention of the Shannon stop-over.

While some of its demands are unrealistic and would make a nonsense of the Minister's objectives, an opportunity has been created for Mr Brennan to engage in reasoned economic argument about his plans. The taxpayers, who funded and own the State monopoly, are entitled to know what specific benefits will flow from restructuring. And the Minister, who is the sole shareholder on their behalf, has a responsibility to tell them.

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At the very least, industrial peace during the course of such discussions will provide an important breathing space for a threatened tourist industry.

The handling of the issue by the Coalition Government has been abrupt and confrontational. And it has generated an impression within the trade union movement that the break-up of Aer Rianta represents the cutting edge of a much more fundamental assault on the public transport sector.

In that regard, officials point to proposals to privatise 25 per cent of Dublin bus routes by next year and to build a privately-funded terminus at Dublin airport.

There is little doubt that Aer Rianta could be slimmed down and made more efficient. Any highly-profitable company inevitably grows fat and complacent. But the dissolution of the company and the business model advanced by the Minister may not be the only option. In its election manifesto, Fianna Fail only proposed to establish regional management boards of Aer Rianta at Cork and Shannon.

Later today, the board of Aer Rianta is scheduled to consider the proposals put forward by Mr Brennan. On the basis of its previous attitude, it is likely to oppose them. And its chairman, Mr Noel Hanlon, is said to be reluctant to step aside and allow the establishment of the new boards to proceed. Mr Brennan will have to work hard to ensure that the benefits promised in his plan will outweigh any potential losses.