asked the Minister for Transport and Power if his attention has been drawn to the assertions of the mayor of Limerick that Shannon is dying; and if he will make a statement on the future prospects of the area.
Ceisteanna—Questions. Oral Answers. - Shannon Airport Prospects.
77.
I am aware that the reduction in traffic at Shannon Airport in 1973 and the decision of Pan-American Airways to cease the opertion of scheduled services to Shannon have given rise to some disquiet locally. However, these matters should be seen and understood in their proper perspective.
The fall in traffic through the airport in 1973 affected mainly transit traffic which was down by approximately 17 per cent. This type of traffic has always been subject to a certain amount of fluctuation, depending on a variety of factors outside our control, and it would be a mistake to attach particular significance to the returns for a single year, particularly a year like 1973 which was affected by so many special circumstances. The drop in the more important terminal traffic was only 4½ per cent while the reduction in aircraft landings at the airport was less than 1 per cent. I do not consider that the reductions of this order provide grounds for pessimism about the future of Shannon.
I am, of course, concerned that there should be no avoidable interruption in the growth and development of Shannon and during the year I had consultations with the various agencies concerned and with all interested parties. The study group which was set up under Aer Rianta auspices has been investigating the causes of the disappointing returns for 1973. The group attributes the traffic fall-off to a variety of factors including, in particular, the continued coverage given to the Northern Ireland situation, the uncertainty created in the American market by currency changes particularly the much reduced exchange value of the US dollar in Europe, the increased surveillance by the US authorities on the operation of illegal affinity charter flights and the failure of the new travel group charters to gain popular acceptance by the American public and travel trade.
There was also a stoppage during the early summer because of an industrial dispute and during the last quarter of the year traffic was affected by the fuel situation. The Deputy will appreciate that these factors were largely outside the control of my Department and this naturally affects the scope of the remedial action that can be taken.
Notwithstanding these considerations, Bord Fáilte, Aerlinte and SFADCO are stepping up their promotional efforts in North America for the coming season. The immediate prospects, as in so many other areas of activity, are governed by the fuel situation. If there is no deterioration in this area, the prospects for the coming season are reasonably encouraging. An indication of prospects for the North American market is the fact that advance bookings for tourist attractions featuring the Shannon gateway are currently running at 7 per cent ahead of the corresponding period last year.
There has been good progress in the industrial estate. During the year 1972-73, 11 new firms were established and expansion took place in six existing firms. Employment rose by 435 jobs. Since then a further six firms have been established and five existing firms have expanded. The Shannon town population increased by 800 during 1972-73 and there has been a further increase of over 600 since then.
I want to take this opportunity to re-emphasise that the Government are fully committed to maintaining Shannon as the transatlantic gateway and to giving priority to the development of the Shannon region and the western areas. In the light of Shannon's past achievements and the manner in which previous difficulties were tackled and overcome, I have every confidence in the ability of Shannon to meet the present challenges and to retain its position as a major development centre.
When I was on that side of the House and made a long reply it usually meant that I was trying to evade a direct answer. May I ask the Minister two direct questions?
May I take them one at a time? The Deputy's questions, like his answers, tend to be long.
The first question is: does the Minister agree with the assertions of the mayor of Limerick regarding the prospects of Shannon? The second question is: does he agree that the introduction of daily flights by Trans-World Airlines will improve the area rather than diminish its prospects?
No, I do not agree with the mayor of Limerick and, yes, I do agree that Trans-World Airways will improve its prospects.
Will the Minister take the necessary steps to ensure that Aer Lingus will not be permitted to overfly Shannon as they did on two occasions recently?
That is a separate question.
Will the Minister ensure that this will not happen again? Recently when Aer Lingus overflew the airport, Aer Canada landed immediately afterwards.
If the Deputy can be patient until next Tuesday I will give him a reply then.