Vol. 424 No. 6
7 Mr. McGrath asked the Minister for Tourism, Transport and Communications her views in relation to the future of the compulsory stopover at Shannon Airport, County Clare, for transatlantic flight; if any time frame for a final consideration of this matter has been set; and if she will make a statement setting out policy in this regard.
14 Mr. Byrne asked the Minister for Tourism, Transport and Communications if she has yet concluded studies of proposals put to her on the Shannon stop-over, which she informed Dáil Éireann on 1 July 1992 she was then considering; if, in view of the uncertainty, she will indicate when she will make a final policy statement about the future of the airport having regard to the uncertainty; and if she will make a statement on the matter.
23 Mr. Spring asked the Minister for Tourism, Transport and Communications if she will elaborate on the comments on 19 September 1992, in regard to the future of Shannon Airport; and if she will make a statement on the matter.
35 Mr. Hogan asked the Minister for Tourism, Transport and Communications her views on the future of the compulsory stopover at Shannon Airport, County Clare, for transatlantic flights; if the Government has set any deadline for making a decision on the matter; and if she will make a statement on the matter.
44 Mr. Spring asked the Minister for Tourism, Transport and Communications when an announcement will be made about the future of Shannon Airport, particularly having regard to the comments made on 19 September 1992; and if she will make a statement on the matter.
I intend taking Questions Nos. 7, 14, 23, 35 and 44 together.
When I was appointed Minister for Tourism, Transport and Communications in February last, there was a number of important issues on my desk, among which was the Shannon stop issue. Within days of my appointment, I embarked on the process of consultations with all sides in the debate on this important and far reaching issue. I met with Aer Lingus, Aer Rianta, Bord Fáilte, Ryanair, Shannon Development, the Shannon Status Committee which represents tourism, commercial and industrial interests, Dublin and Galway Chambers of Commerce, ICTU, SIGNAL — representing the Shannon workforce, Irish Airline Pilots' Association, the Dublin Lord Mayor's Committee on the economy and Fly Dublin Direct Committee. In addition, I both met with and received submissions from a large number of private individuals who made their views on the matter known to me.
At the outset, I was asked by all concerned to review the matter in such a way that whatever decision was taken would be in the best long term interests of the airport and the region. Many investors were concerned that a short term decision would create a climate of uncertainty.
I have been criticised for an undue delay in taking a decision on the Shannon stop issue. I categorically reject this criticism. There were two very valid reasons for not submitting proposals before now: first, I wanted to consider carefully the implications for Ireland of recent US initiatives in relation to their air transport policy and secondly, I acceded to a request from the Chairman of Shannon Development to postpone a decision until he had concluded discussions with local interests. These discussions have only been concluded recently.
Within a week of receiving these two crucial inputs, I presented proposals to Government and achieved remarkably speedy agreement to the strategy I outlined on Tuesday last. I announced then that the Government, on the basis of proposals I put to them, had taken a decision in the matter. This decision starts with a commitment by the Government to further investment in transport infrastructure in the west and mid-west regions. The Government have reaffirmed their commitment to make Shannon a major aviation centre, with the retention of the Shannon stopover. Fundamentally, this decision ensures that jobs in Shannon and along the western seaboard are preserved and that new jobs can be created. It does not endanger a single job anywhere else.
To further develop Shannon Airport, I am setting up a special traffic development task force for the airport with a budget of £1 million over the next two years. The task force will have an independent chairperson. Aer Rianta and Shannon Development will be represented by their chief executives and one other designated senior staff member from each body.
The Government have also approved proposals for new transport development plans for the west and mid-west regions to be drawn up by me and my colleagues, the Minister for the Environment and the Minister for the Marine. This will be done in the context of the forthcoming National Plan, to be co-financed by EC Structural and Cohesion Funds. There will be a substantially increased investment in transport infrastructure in the west and mid-west regions. Not only will this enhance the attractiveness of Shannon Airport itself but will also ensure that these regions will not be so dependent on the airport to achieve their development potential in future.
I am satisfied that the decision to retain the Shannon stop-over is not only in the best interests of Aer Lingus, but is very much in line with concerns expressed by tourism interests, the Irish Congress of Trade Unions, the Joint President of SIPTU and the Bishops' Forum on the Development of the West of Ireland.
I call first Deputy Eric Byrne whose Question No. 14 refers.
At least the uncertainty about this issue has been done away with; the Minister has now made her decision, for better or worse. In view of the crisis in Aer Lingus, would the Minister not agree that the two aircraft — I think they are 767s — which have been purchased by the company and which are leased at present should be made available to develop the Los Angeles market with direct flights from Dublin?
I have made my decision, and the Government have agreed with it. That is the position.
May I follow up that point?
Order, I call Deputy Alan Dukes.
Would the Minister agree that this much delayed decision would never have had to be made if it had not been for the fact that her predecessor irresponsibily threw doubt on the entire issue? May I ask the Minister if, having made that very sensible decision, she now has any plans to take steps to deal with the main part of the issue, that is, renegotiate the bilateral agreement between Ireland and the US in order to gain more access points in North America, the only way we are going to gain more traffic?
I have already asked the United States authorities for access rights to Miami and Washington. I hope to ask the special task force to assist me in that regard in that their main function and aim will be to develop through traffic through Shannon Airport. I imagine that the task force will get to grips with that job very quickly and will approach both US and continental airlines to use the facilities at Shannon Airport.
First, I thank the Minister for retaining the stop-over at Shannon Airport. I acknowledge that the problem was not of her making, rather that she inherited it from her predecessor, Deputy Séamus Brennan. The question mark which has hung over Shannon for the past three years as a result of the indecision of the Minister's predecessor caused much damage to the region. Would the Minister consider getting together with the Minister for Finance and the Minister for Industry and Commerce to examine the difficulties being experienced by people in the tourism and industrial sectors in the region? Some of these people failed to secure finance while others could not go ahead with their plans because they were unsure about the future level of tourist traffic through the region. In addition to the steps being taken by her in conjunction with the Minister for the Marine and the Minister for the Environment in terms of setting up a transport task force, would the Minister consider setting up another task force to deal with the damage which has been caused to the industrial and tourism sectors in the region?
I am not sure that there is a necessity to have such a task force because the State company, Shannon Development, have responsibility for the areas mentioned by the Deputy. Of course I will be delighted to have discussions with both my ministerial colleagues in relation to any assistance we can give to Shannon Development.
The Minister gave it as her understanding that the decision on the Shannon stop-over was in the best interests of Aer Lingus. For from being in the best interests of Aer Lingus, this will be cold comfort for the company, having regard to the very serious crisis facing Aer Lingus at present.
There is a further question on the Aer Lingus problem. I dealt with it on the Adjournment earlier this week and for a three-hour period over the last two nights. The concern of Aer Lingus in relation to the Shannon stop goes back to the late eighties and the beginning of 1990 when the company approached the Minister and the Government asking the Government to negotiate on their behalf landing rights with the US authorities at Los Angeles Airport. They did so on the basis of existing Government policy which included the Shannon stop. In September 1990 those rights were secured for Aer Lingus and Irish airlines by the Government. The company then produced detailed, costed arrangements by way of an application to the Minister, the Department and the Government for the acquisition of aircraft to service that route. They did that once again on the basis of accepting totally existing Government policy which included the Shannon stop. Permission to acquire the airport was given to the company, who proceeded to acquire the aircraft. Within 12 months the management of the company stated publicly that the company could not operate the route without a change in Government policy. In the latest proposals which have been presented to the board, and which seem to have found their way into the public domain, the best option put forward by management to the board for Aer Lingus as a company is the retention of the Shannon stop.
The Minister stated that the object of the Shannon stop-over is to create jobs in the Shannon region without taking jobs from anywhere else. That is a ludicrous statement. Jobs are being lost and will be lost in the Dublin area. Has the Minister taken into account the serious environmental factors in respect of the Shannon stop-over, issues such as airline safety and the diminution of personal choice, which is now the lot of people wanting to travel in either direction between here and the United States?
What about the pollution and overcrowding in Dublin?
Perhaps Deputy Garland would be good enough to provide figures relating to the number of jobs he has been told will be lost or have been lost in the Dublin region.
I will.
Regarding airline safety, I hope Deputy Garland is not raising doubts about the safety of Shannon Airport. If he is, I must reject any such suggestion out of hand. He claims that people do not have a choice. Two-thirds of people travelling from the US to Ireland alight at Shannon. Those people are voting with their feet. Much has been made of the fact that business people often travel via London to the USA, making a stop-over at London rather than at Shannon. The reasons are several. Business people, individually and collectively through their organisations, have told me in recent months that they do this for convenience purposes and secondly because of the vast number of destinations in the USA served out of London. Many business people who work in the financial services industry travel out of London because they use Concorde, but many of them return on the late night flight from New York or Boston to Shannon. They can sleep overnight and arrive in their offices in time to do business the following day.
Will the Minister confirm her statement that the main reason for this decision was regional policy? Where does the Dublin region fit into her considerations? Is she aware that Dublin as a region has suffered enormously in the context of job losses and that there are areas in Dublin which have suffered a loss of population because whole families are now working abroad?
Is the Minister aware of the concern in the small towns and villages and large suburbs of north County Dublin, villages like Lusk, Malahide and Swords where every second house has an employee of Aer Lingus? What comfort is there for the region of Dublin and its hinterland?
If Deputy Flaherty is suggesting that there have been job losses in the past and that there will be more job losses in the future because of the Shannon stop policy, perhaps she will provide me with figures to prove the case. It has not been proven. In relation to regional policy, this is a very unbalanced, lopsided country. During the past few months when we were campaigning in the Maastricht referendum many of us made frequent use of the European buzz word "subsidiarity," which means the development of the regions. It would be ludicrous for a Government or a party to talk about subsidiarity in the European context if they were not prepared to talk about it at home. That means balanced regional development. All of us are guilty of not facing up to the need for such regional development up to now.
This is central control, not regional control.
I come from a region which has been neglected by successive Governments. Only in the past ten years have we begun to look seriously at balanced regional development. This decision has been made in that interest.
Would the Minister not agree that there is tremendous hypocrisy in this debate? On the one hand there is a false sense of victory in the mid-west region on the basis that Shannon is now secure. On the other hand, the Minister is pursuing, with the full support of the Fine Gael group, a policy of part privatisation. Would the Minister not agree that the policy of part privatisation and the supposed permanency of the Shannon stop-over are contradictory, in that as soon as private interests are involved with Aer Lingus, that will sound once and for all the deathknell of the compulsory Shannon stop-over? They are contradictory.
Nonsense. They are unconnected.
Deputy Dukes has answered the question quite eloquently.
I will not charge a fee.
I am not talking about the privatisation of Shannon Airport. The question does not arise.
