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.