The Minister can deal with the points raised by Deputy McGilligan, but, for his information, the information he requires as to the precise activities being undertaken by the Shannon Airport Development Company Ltd. at the present time was given on the introductory stage of the Shannon Free Airport Development Company Limited Bill, 1959, as reported in volume 177, No. 1. Details are given of the four projects under construction for which negotiations have been completed. The present employment content and the envisaged employment content are also given.
There are some matters to which I want to refer with regard to the Shannon Airport Development Company. So far as I can see, one is either entirely for this proposition of the Shannon Airport Development Company or against it. One cannot be lukewarm with regard to that matter. Whether we like it or not, Shannon Airport happens to be fighting for its existence and for its future. There is no point in going into the reasons for that. We know that with the coming of the jet age, certain changes are taking place, and if we were to ignore the trends of modern aviation and their effect on this country, we would, in my humble opinion, be committing a very grievous sin against our industrial workers and, in particular, against the 2,000 people employed in Shannon Airport at the present time. There will be a certain amount of over-flying by jet aircraft. Were we, therefore, to indulge in what one might describe as industrial presumption, namely, a foolish expectation of industrial salvation without taking the proper means to attain it? Whether or not the Minister will appreciate that point, I cannot say.
We were left with that position facing us. The Government, in a very realistic manner indeed, shortly after coming back to office, provided over £1,000,000 for the jet runway which, under the contract, is to be finished next August. In reply to a Question by me yesterday, the Minister indicated that with favourable weather, and so on, it may be finished in time.
Deputy Cosgrave, Deputy Russell and several speakers, notably in newspaper articles and in letters to the papers, tried to suggest that the same facilities obtainable at Shannon Airport should be given to industrialists in the Limerick and Ennis areas. I do not think either of these Deputies wishes to see Shannon Airport close down, with regard, at least, to the industrial zone, but if legislation were ever enacted in this House to give the same facilities to these areas, I am afraid it would be the end of Shannon from the industrial zone point of view.
There is nobody who would prefer to see industries in Limerick city more than I but I am being realistic. If the same facilities were given to Limerick city or to Ennis as are available at Shannon and if the industrialist setting up his factory said: "All right; I will set up my factory in Limerick or in Ennis and fly my products by air freight out of Shannon Airport", what is the answer? In my opinion, it is a question of the cost of freight. You will have double freight charges. At present, the factories at Shannon just load on the finished product and fly it anywhere in the world where there is a market. That is a convincing argument.
I want to refer to another criticism by Deputy Russell in relation to the building of the factories. He cited a case where Foras Tionscal and the Industrial Development Authority gave a loan and a grant to a project and the building was left on their hands. In Shannon, so far, they have leased all the buildings. If it did happen that a company went out of business at Shannon, they would not own the factory. Their lease would end under the terms of their agreement with the Shannon Free Airport Development Company Limited. The building would revert to the company if the people using it ceased the business. I think that is good policy also.
I want to correct a statement which appeared in one of yesterday's newspapers that a Japanese company with Irish principals and substantial Irish capital propose setting up a factory in Shannon. A speech was made by a responsible member of, I think, the Waterford Chamber of Commerce, or some such body. He suggested that, if a curb were not put on the activities of Shannon Airport, cheap raw materials or semi-processed articles would come into the free airport and the result would be to drive a number of Irish business firms off the map. That is not in accordance with the facts.
Shannon Free Airport Development Company Limited—it is a pity the title is not shorter—is not empowered to sell anything on the Irish domestic market. Everything in that industrial zone is for export. The primary object is to encourage air freight. Industrialists in this country, small business people as well as large business people, need not have the slightest fear that at any time they will be in competition with the manufacturers in Shannon. Everything in Shannon Airport will be for the purpose of encouraging air freight business.
The Minister would be well-advised to give the question of freight subsidy every consideration. We know that, in certain respects and in certain cases, air freight is not as economically attractive as transport by ship. There are commodities in which it is competitive. It has the advantage for agricultural produce of getting it to the Continent of Europe quickly but I think there is a case for a subsidy. I do not want the Minister to answer me today because it is very involved. However, in my opinion, there would be a very strong case for a certain subsidy with regard to freight. Concessions are given to airline companies with regard to fuel, and so on. I have in mind a grant or a subsidy (1) to attract industrialists to export by air and (2) to make it competitive with shipping at the present time.
A certain aspect of the mentality of the Irish is that we seem to think everyone in the world is watching us and knows everything that is happening in Ireland and at Shannon. If you pick up 999 industrial or travel magazines out of 1,000 in America you will not see any mention of Ireland. If one of these factories cost £500,000, this company would be well-advised to devote that capital, or an equivalent amount, towards advertising the facilities available. The Minister may say that this matter has been publicised throughout the world through chambers of commerce. We know these individuals. They throw magazines in a reading room. You go in there out of the cold, or if you have nothing better to do. The ordinary go-ahead young businessman quite possibly never comes across these journals. Are they advertising in the right journals? Is there any indication that their advertising campaign will be stepped up?
As far as I can see, everything going well, in the next six years there should be an extra 3,500 persons employed at Shannon. If 3,000 to 3,500 extra people are employed there, this Company will be one of the biggest semi-State undertakings we have, perhaps, after C.I.E. and it should receive every encouragement and co-operation.
The Minister also stressed the desirability of attracting business to Shannon and work hand in hand with Bord Fáilte. We must get away from an insular attitude in this regard. Take the difficulty in relation to hotel accommodation in Ireland. Hotels are about to be erected in Limerick, sites are being purchased in Cork and there are options on sites in Dublin. However, that is all in the future but the Minister will have to be convinced that the modern deal in relation to American tourists is the package deal.
The very high percentage of the travel from America to Europe last year was of the type that your hotel accommodation and the countries to be visited were picked out. I see no reason why this Company, possibly together with Bord Fáilte, could not ensure that we had the hotel accommodation in Ireland, that we owned a hotel in Spain, that we owned a hotel in the South of France and possibly in Italy or Germany. I do not think that is so fantastic. The first few jets will be delivered to Aer Linte next year. It is essential that we have means of conveying travellers wherever they want to go and that we should have the means of accommodating them. However, I do stress that the whole future of the tourist traffic from America, particularly to Europe in the foreseeable future, will involve the package deal and I trust that consideration will be given to the bottleneck which exists as regards the lack of hotel accommodation. Perhaps I am getting away from the question before the House.
This Company set up in Shannon is composed of a body of young men and some old men; it is well worthy of the support of all sections of the community. I know some of them personally and I know that, night and day, they will have the hope and the object of securing the continuation of the prosperity which Shannon enjoys now. They are alive to the grave position with which we shall be confronted in the jet age but with the encouragement they have received from the Government in the past couple of years I have no doubt they will be successful in their endeavours.
