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Dáil Éireann debate -
Tuesday, 4 Nov 1997

Vol. 482 No. 3

Air Navigation and Transport (Amendment) Bill, 1997: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

I mentioned the record and achievements of Aer Rianta in Shannon's success. It is a focal point for the development of industry and tourism in the midwest. It is important that Aer Rianta's work in Shannon be recognised. When the Minister hands authority over to Aer Rianta, the property in Shannon will become liable for county rates to Clare County Council, which, it is estimated, could realise over £1 million in rates.

It is important that the Government recognises the work Clare County Council has been doing in developing the infrastructure around the airport. When revenues accrue to the council from the airport rates, this money should not be deducted from the council through another mechanism. We experienced this when Moneypoint was valued and rates were levied on it. An amount was deducted from the rate support grant to Clare which caused much concern. I will deal with this on Committee Stage.

The prospect of the abolition of duty-free facilities in the airports will have an impact on job opportunities in all airports. There has been a reluctance to face this inevitable fact, but there are also special cases to be made. It is important to highlight the advantages of duty-free facilities in airports. That successful operation should be continued, as it has created jobs as well as generating revenue for the airports to develop facilities for passengers. It is important to emphasise the need to find a mechanism within EU rules and regulations to continue to provide duty free facilities at airports in the coming years.

Sections 14 and 15 refer to the transfer of properties from the Minister to Aer Rianta. The Minister will be aware some of the properties adjacent to Shannon Airport are holdings of the Shannon Free Airport Development Company Ltd. The procedures to put in place customs free zones, which are complex and involve several ministries, have meant that, by and large, the customs free zone and the industrial estates connected to Shannon have been operated by the Industrial Development Authority and by the Shannon Free Airport Development Company Ltd., the agency for the mid-west region.

During the hand over of properties the Minister should take into account the importance of placing the properties being used for industrial purposes under the control and management of the Shannon Free Airport Development Company Ltd., otherwise that company may end up negotiating with another State agency for land in the ownership of the Minister. It is important to get a clear indication of which lands will be given to Aer Rianta and the Industrial Development Authority so the industrial development promotion and customs free activities which have been taking place there over a number of years may continue.

Section 29, which I do not particularly like, allows the chief executive of the company to be removed from office by the board. A chief executive might run into difficulties with the board because of personalities, etc. Members of the board may vote the chief executive out of office, which is undesirable. A mechanism for appeal should be included in section 29 where the chief executive, who might be removed at the whim of some members of the board, could go to the Minister for a final decision in the event of a dispute. The chief executive should be an ex officio member of the board of the new authority because in matters of airport management and development he or she is central. I cannot see a situation where the chief executive would be outside the board and would be called in on occasions to discuss important issues. On Committee Stage I will seek to ensure environmental issues are covered and that airports, such as Shannon, could link up with other international airports, which is not provided for.

I welcome the legislation which will underpin the work done in Shannon. At a time when there is a lack of confidence in Shannon, it should restore the confidence of the people of the region in the airport, its future and its prospects for creating more employment and opportunity. The legislation and the resulting financial developments should underpin Shannon as a major centre for development, employment and tourism creation in the long term.

While I welcome the legislation, I will have more to say on Committee Stage. I would like Aer Rianta to decentralise its offices from Dublin to provide clerical work in the regions. We have always followed a strong policy of regionalisation and I hope the authority will look at creating further employment opportunities by decentralising some of the administrative offices to places such as Shannon and perhaps Cork.

I welcome the Air Navigation and Transport (Amendment) Bill, 1997. I remind the House that this legislation is almost a generation overdue. Be that as it may, it is better late than never. The Bill contains 64 sections, all or most of which are acceptable. It provides for the setting up of Aer Rianta as a commercial State body, which is a step in the right direction. I hope it will enable Aer Rianta to expand and develop to its maximum capacity.

The threat to duty free income from sales at our airports and throughout Europe could mean disaster. Aer Rianta earned over £100 million from this valuable business last year. What will substitute for the loss of this considerable sum of money to Aer Rianta if this threat is acted on? As outlined by Deputy Broughan, it is evident the Taoiseach was led up the garden path and had the wool pulled over his eyes when he meekly accepted this legislation in Brussels in 1992. I call on him to proceed to Brussels immediately to urge his counterparts in the EU to readdress this anomalous legislation passed in 1992. This matter must be readdressed in Brussels and I urge the Taoiseach to have the retrograde legislation changed to ensure a continuation of duty free services at airports throughout the EU.

I dislike the move afoot to play down the importance of regional airports and to centralise the lion's share of funding in Dublin Airport. While Dublin is the capital city and deserves what its airport gets, other regional airports must also get their share of the national cake. If the Celtic Tiger continues in its stride, Aer Rianta might consider extending its service to the sunny south-west and build an airport in Bantry to cater for tourism, mariculture and the other industries which would emerge from its siting in this region. Parts of my constituency in south-west Cork are over 120 miles from the nearest airport, that is, Cork city. Furthermore, we have had no railway system since the late 1950s.

I would like to ascertain why Aer Lingus discontinued flights from Dublin to the Canary Islands. We must now rely on Futura, a Canary Islands airline, to fly at least 1,000 people to the Canaries each weekend. Before the Celtic Tiger is caged, the Minister should see fit to establish an airport in south-west Cork, an area larger than several counties which is far away from the major airports.

Debate adjourned.
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