Vol. 779 No. 2
6. Deputy Richard Boyd Barrett asked the Minister for Transport, Tourism and Sport if a person (details supplied) has received any director's fees from November 2011 to June 2012 in view of reports that he has not attended meetings over this period; and if he will make a statement on the matter. [45200/12]
83. Deputy Joe Higgins asked the Minister for Transport, Tourism and Sport if a person (details supplied) has received any directors fees from November 2011 to June 2012 given reports that he has not attended meetings over this period; and if he will make a statement on the matter. [45202/12]
I propose to take Questions Nos. 6 and 83 together.
The payment of directors' fees is a matter for Dún Laoghaire Harbour Company in accordance with the code of practice for the governance of State bodies. While the code requires companies to provide details of attendance in their annual accounts and outlines a number of other requirements in regard to the payment of fees, it does not link the payment of fees to attendance at a particular number of board meetings in any given period.
The company's annual accounts and chairman's report for 2011 confirm that all fees were paid in accordance with Government guidelines. Furthermore, the company’s accounts also detail individual directors’ attendance at board meetings for the period covered by the accounts. The person referred to attended six out of a possible nine meetings in 2011. This information is publically available. I am not yet in receipt of the company's annual accounts for 2012 nor was I aware of the reports to which the Deputies refer.
The person's tenure on the board of Dún Laoghaire Harbour Company expired in June 2012 and has not been renewed.
I thank the Minister for his reply. These concerns arise as a result of the extreme pressure on harbour workers, a couple of whom are in the Visitors Gallery today. For example, four of the nine harbour policemen have been put on one week a month temporary lay-off for an indefinite period because the company says it does not have the money to pay them, which is a major hit for those concerned and for the amenity in terms of safety. It is incredible that the company does not have the money to pay the workers who protect the harbour and users of it while a director who is known to have been overpaid expenses, which were supposed to have been returned - I am not sure if they have been repaid - and does not attend meetings continues to receive directors' fees, expenses and so on. Earlier we discussed the payment of obscenely high and unjustifiable salaries to people at the top. It appears as though there is one law for directors and executives and another for low to middle paid workers who are being hit severely by way of temporary lay-off. Also, the superintendent of the harbour has been suspended in what appears to be a deepening rift between management and the workforce in the harbour.
I ask that the Minister investigate these matters and try to bring fairness to bear, thus ending the situation whereby people at the top are paid large amounts of money for doing very little while front line workers, who ensure the harbour functions in the interests of the public, are hammered in an unacceptable manner.
This issue relates to a person who is not here to defend himself and is no longer a member of the board of the harbour company. I do not believe people who do not turn up for board meetings should be paid directors' fees. That situation must change.
I welcome the Minister's response, with which I agree wholeheartedly. Given that the Minister is reviewing this situation - I can tell from the tone of his responses that he takes these issues seriously - how can we, as public representatives, best put forward our suggestions to him in regard to how this regime could be changed? I put it to the Minister that given the threat to the amenity and the workforce the best solution would be to abolish the board and executive. He could probably get representatives of the workforce or community to do the job on a voluntary basis, with direct control for operation of the harbour resting with the Minister, thus protecting front line workers. I would welcome the Minister's response in regard to the proposal to defend the jobs of front line workers and abolish the board, which appears to serve no function.
We are in the process of appointing a new board and chairman. I am genuinely open to suggestions from people and stakeholders on how the harbour company should operate. However, whatever the final structure, it will need to operate on a commercial basis. Government subvention and taxpayers money is for schools, hospitals, pensions and support for the disabled, carers and the unemployed. We do not intend getting into the business of subventing harbours or port companies or any semi-State organisation, other than CIE.
I am interested in hearing any suggestions in regard to how the company can be put on a sound commercial footing, under any structure. If the Deputy wishes to make a submission along those lines, I am happy to consider it and to then meet with the Deputy and others from the constituency on that basis.
7. Deputy John Browne asked the Minister for Transport, Tourism and Sport the reason for his non-intervention in the events involving the students at the Pilot Training College in Waterford; and if he will make a statement on the matter. [45168/12]
77. Deputy Pádraig Mac Lochlainn asked the Minister for Transport, Tourism and Sport the steps he is taking to help the people who were let down by the pilot training college having paid large tuition fees. [45131/12]
I propose to take Questions Nos. 7 and 77 together.
These questions relate to the situation at the Pilot Training College, PTC. This issue arose from the failure of PTC, a privately-owned and operated flight training school, to meet its contractual obligations to its students for the completion of their training.
The Irish Aviation Authority, IAA, has responsibility for approving and overseeing flight training organisations. Its primary functions in this regard are oversight of the safety, quality and standard of the training being delivered and the conduct of examinations and flight tests. It considers issues such as whether the company has sufficient resources to safely provide the training required to the internationally determined standards. It had no involvement in, or responsibility for, the contractual arrangements between PTC and its students. The IAA's role is based on European rules. PTC is not, unfortunately, an isolated example. There have been similar failures in other countries in the recent past in respect of which the students involved also suffered losses. Unfortunately, many businesses have, in the current economic climate, failed, leaving their suppliers and customers out of pocket, including businesses in respect of which a State body has a regulatory role.
In July, the High Court appointed an examiner to PTC Ireland. The IAA worked with the examiner to assess the options available but unfortunately on 28 September the court ordered the company's liquidation after a final potential investor withdrew. While I sympathise with the students and their families, many of whom have suffered considerable financial losses through this company's collapse, neither the Government nor the IAA, has any liability in this regard. The Irish taxpayer cannot be liable for a company’s debts simply because it had approval of some form from a State agency.
I thank the Minister for his reply, although the information provided does not give any comfort to the parents and students who find themselves with an enormous financial burden.
I refer to young people who accepted a place with the PTC in the belief that it had the backing of the State, not just in terms of the regulatory role of the Irish Aviation Authority. The Minister said that, as part of the authority's remit, it would have to determine whether the PTC had sufficient resources to provide training. One wonders whether it was possible at the outset to establish whether there were sufficient resources to ensure the training of potential pilots.
In recent weeks, it has been reported in public that another training company has been established in Waterford. It has a very similar name, Clearsky Pilot Training College Limited. From company records, it appears to have a set of directors similar to that of its predecessor. This is of particular concern to the parents. Will the company seek to be recognised by the Irish Aviation Authority? If so, will the authority be compelled to provide it with the necessary credentials provided that it is technically able to provide training to prospective pilots? Will there be capacity in this instance to deal with the issue of providing sufficient resources?
From a couple of perspectives, we need more clarity. We need to know whether the law is strong enough to protect against the phoenix-like emergence of a new company. Without more evidence, I do not want to repeat some of the allegations that have been made about the stripping of assets and resources of one company in order to provide for the establishment of another. This would be very serious if it were true. Does the Irish Aviation Authority have appropriate investigative powers and other appropriate powers to prevent what I described from happening?
There are a few relevant points. PTC's accounts were signed off, without qualification, on 29 August 2011 by professional auditors. The accountants were satisfied that "the group, including PTC, will continue as a going concern" and they stated the directors are satisfied that sufficient financial resources are available to the group from its budgeted profits, banks and shareholders. The Irish Aviation Authority reviewed the company's financial projections for 2011-13 and its projected profits for each year to the end of 2013. As recently as early June 2012, the authority met PTC's CEO, who assured it that the company had sufficient funding in place until at least the end of 2012. It is worth pointing out in this regard that, had the authority come to a decision that the college did not have sufficient resources – there is no evidence to suggest it – the only action open to it would have been to de-recognise the college and require it to cease trading. Therefore, those affected would be in exactly the same position as they are now. The problem would simply have arisen a few weeks earlier.
A Government regulation is not the same as a bond or guarantee. If an airline or travel agent fails, customers are protected because of the bond. There is no bonding system in these circumstances. Perhaps we need to consider this but we cannot make provision retrospectively.
As with me, I am sure the Deputy has constituents who have been burned by this problem. We all have considerable sympathy for those affected. In some cases, they are losing a lot of money because of what has happened. One should bear in mind that they are not the only creditors. If the Government were to decide suddenly to compensate the creditors, including the very large number of foreign students, airlines and the business in Florida, it would have to compensate them all on the same basis. This would cost the taxpayer millions of euro in this case alone and set a very significant precedent for future cases. Ultimately, I have no money. The only money I have is money that belongs to the taxpayer. It would be irresponsible of me to offer compensation in this case or any similar case.
Clearsky Pilot Training College Limited has been established and registered at the same address as PTC. Following the reports, the Irish Aviation Authority inspected the premises of the company on 4 October last. The new company was providing refresher training for an international non-EU client. The training does not meet the standard required for an Irish or EU pilot licence. Should the new entity wish to provide training meeting EU standards, it, like any other company, will have to apply to the Irish Aviation Authority for approval. To date, the authority has not received any such application.
The Irish Aviation Authority, a State organisation, granted the college a licence to operate. The authority was charged with ensuring the company had sufficient resources to provide training safely. The college never had the resources required for students to complete their courses. We now face a debacle in that a large number of people are left stranded abroad with huge debts. They are unable to complete their training and education. This is a serious issue for them. We met many of them outside Leinster House and they told us stories about borrowing money and of their being up to their eyes in hock. It is just unacceptable.
To what extent did the Irish Aviation Authority scrutinise PTC when it decided to grant it a licence? There is an onus on the State to address this because the authority is a State institution that needs to be made accountable for what happened.
It is important to state nobody has been stranded abroad.
People were stranded.
They were but they subsequently came home themselves or were repatriated at the expense of the Irish Aviation Authority on a no-prejudice basis, or on humanitarian grounds. I do not have the exact figures in front of me but I am informed that most of the trainees have resumed their training. Arrangements have been put in place in other colleges to allow the trainees to pay in instalments so they will not have to borrow large sums of money upfront. In addition, the Irish Aviation Authority made sure it got its hands on the trainees' records so training done to date will be recognised. There was a case previously in which this did not happen. Assistance was provided in so far as this was possible.
The PTC was audited by independent accountants and no issue arose in respect of the audit. Any inspections or reviews of the financial protections carried out by the Irish Aviation Authority showed the college had sufficient resources. Even if the authority had determined that the college did not have sufficient resources, all it could have done would have been to remove its licence. With the exception of a small number of people who paid fees in the weeks just before the college closed, everyone is in the exact same position. This would have been the case even if the Irish Aviation Authority had determined that there were insufficient resources.
As I stated, a licence is not a bond or guarantee. Perhaps there should be a bond, and we will examine this. A bond will come at a cost, and that cost will have to fall on the trainees.
The Ceann Comhairle was kind enough to allow me to raise a Topical Issue on this subject but, thanks to a mess-up in my office, I missed the debate. I apologise and appreciate the opportunity to raise the matter again.
The Minister referred to professional audits and qualified accountants. However, if he reads excerpts from the report, he will note it states the negative capital and reserves of the company were almost €2.2 million underwater as of 31 December 2010. It also states: "These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern." Furthermore, it states: "The financial statements do not include any adjustments that would result if the Company was unable to continue as a going concern." The latter is repeated twice. These three statements raise serious concerns that should have stood out significantly.
The Irish Aviation Authority, a State agency with regulatory responsibility, gave the college a clean bill of health. Enterprise Ireland, a semi-State body, granted €400,000 to the college on top of an earlier grant of €8,000.
It could be any Irish family but we are focused here on our constituents who spent their life savings so their children could fulfil their ambitions.
The full imprimatur of both the Irish Aviation Authority and Enterprise Ireland had been given to this company even though it is clear from its accounts that it was in serious difficulty. Families now hear about companies like Clearsky Pilot Training College Limited and the Shemburn Group, which allow the same directors to start again and possibly get a licence. Where is the justice in this? I know the Minister has met the families and knows the issue very well but I appeal to him to reconsider. The Irish Aviation Authority will be appearing before the Oireachtas Joint Committee on Transport and Communications next Wednesday morning. I ask the Minister to look at the transcript of that meeting afterwards. I appeal to him to reconsider because this is very unfair to dozens of Irish families who face serious hardship. I admire the Minister's approach to many of these matters so I ask him to reconsider the issue.
Deputy Dooley may ask a quick supplementary question.
Deputy Mac Lochlainn has covered the two issues I had in mind, which related to Enterprise Ireland and the audit committee. Has the Minister considered referring any report that either he or the Irish Aviation Authority might have produced to the Director of Corporate Enforcement? If there is a phoenix company-type situation arising in respect of a new company, there is certainly a requirement to refer the matter to Director of Corporate Enforcement.
It is possible to read sections of accounts but, ultimately, the finding of the auditors was that it was a going concern and would continue as such. If it is the view that the Irish Aviation Authority somehow failed in its duties, it is open to the people concerned to take legal action against the authority. It is then, ultimately, for the courts to decide if that is the case. Based on its own advice, the Irish Aviation Authority, which is the statutory body responsible for this matter and not my Department, is confident that it was not negligent in any way.
The issue of phoenix companies causes huge anger and frustration but there is a reason why we have limited companies. If an honest businessperson has two businesses and one of them fails, it would not be right to allow the business that failed to bring down the good business. This is why we have limited liability - so that the failure of one business does not bring down other businesses.
I do not know if there are any issues here for the Office of the Director of Corporate Enforcement but if there are, I would expect the Irish Aviation Authority to make a referral to the relevant authorities. I am not aware of any referral.
8. Deputy Michael McGrath asked the Minister for Transport, Tourism and Sport if he will provide a progress report on the preparations for the gathering 2013; and if he will make a statement on the matter. [45190/12]
26. Deputy Tom Hayes asked the Minister for Transport, Tourism and Sport if he will provide an update on the Gathering 2013 project; and if he will make a statement on the matter. [44955/12]
27. Deputy Michelle Mulherin asked the Minister for Transport, Tourism and Sport if he will address the need to make provision for an additional funding allocation to support and enable persons and organisations to market and run events for the Gathering 2013; and if he will make a statement on the matter. [45097/12]
76. Deputy Michelle Mulherin asked the Minister for Transport, Tourism and Sport if he will address the need to make provision for an additional funding allocation to support and enable persons and organisations to market and run events for the Gathering 2013; and if he will make a statement on the matter. [45089/12]
79. Deputy Pat Breen asked the Minister for Transport, Tourism and Sport if he will provide an update in the Gathering 2013; the measures being taken to provide additional transatlantic capacity into Shannon Airport in order that the west of Ireland can capitalise on this initiative; and if he will make a statement on the matter. [44953/12]
I propose to take Questions Nos. 8, 26, 27, 76 and 79 together.
These questions relate to The Gathering 2013 project, the resources for same and the role for Shannon Airport in such. With regard to general progress on The Gathering, I refer Deputies to my earlier answer to Question No. 4 on this matter.
In terms of resources, this year my Department has allocated a budget of €5 million for the initiative. It is planned to provide a small amount of additional funding for Gathering events at county and local level in the near future. Details of this are being worked out at present and will be announced shortly.
With regard to additional capacity into Shannon Airport, it is a matter for all airlines and the airports themselves to maximise the opportunities presented by The Gathering. In this regard, the Deputy will be aware of the recent announcement by United Airlines of a new service linking Shannon and Chicago for next summer which will operate five days a week and provides a very welcome boost for tourism to the west.
My component of that has already been answered.
9. Deputy Seamus Kirk asked the Minister for Transport, Tourism and Sport if he will provide an update in his plans for the separation of State airports; and if he will make a statement on the matter. [45183/12]
31. Deputy Joe Carey asked the Minister for Transport, Tourism and Sport if he will report on the progress that has been made regarding the separation of Shannon Airport from the Dublin Airport Authority; and if he will make a statement on the matter. [44956/12]
41. Deputy Patrick O'Donovan asked the Minister for Transport, Tourism and Sport if he will provide an update on the separation of Shannon Airport form the Dublin Airport Authority; the progress that has been made at Shannon to attract new routes to the airport; and if he will make a statement on the matter. [44954/12]
58. Deputy Pat Breen asked the Minister for Transport, Tourism and Sport if he will provide an update on Shannon Airport, with particular reference to the status of proposals to separate Shannon from the Dublin Airport Authority; and if he will make a statement on the matter. [44952/12]
I propose to take Questions Nos. 9, 31, 41 and 58 together.
These questions relate to the separation of Shannon Airport from the Dublin Airport Authority. As the Deputies will recall, following the Government decision in principle in May to separate Shannon Airport from the Dublin Airport Authority and merge it in a new entity with a restructured Shannon Development, a steering group of senior officials from five key Departments was established to bring forward proposals for the implementation of that decision.
As part of the restructuring of Shannon Development, the latter's functions in respect of enterprise supports, both for domestic companies and inward investment, will transfer to Enterprise Ireland and the IDA respectively while the agency's tourism functions, including the regional tourism offices, will transfer to Fáilte Ireland. In this regard, last month the Government approved proposals from the Minister for Jobs, Enterprise and Innovation to amend the IDA Act 1986 to enable Enterprise Ireland and IDA Ireland to carry out enterprise development functions in the Shannon Free Zone. These changes will bring a more integrated, streamlined and focused discipline to the delivery of both enterprise support and tourism services in the region.
The steering group is being assisted by two task forces which were established in June. The aviation business development task force is seeking out and evaluating aviation-linked business opportunities that could be associated with the new Shannon entity while the change management task force is developing proposals for transitional arrangements and for the appropriate corporate, managerial and operational structures of the new entity, including matters related to IT, HR, finance and property. This latter task force is also drawing up proposals for the transfer of Shannon Development functions to the IDA, Enterprise Ireland and Fáilte Ireland.
I understand that these groups are well advanced in their examination of the range of issues that must be assessed in some detail in order to arrive at the best way forward for the new entity at Shannon. I also understand that the timescale for the task forces to submit their proposals remains mid November. When those proposals have been evaluated by the steering group, both myself and the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, will revert to Government before the end of the year with detailed proposals, including an implementation strategy for the establishment of the new entity.
In the meantime, Shannon Airport is continuing its business operations including maintaining its existing airline customers and attracting new business where possible. This includes a range of schemes on offer to incentivise airlines to increase services and passenger numbers at the airport. In addition to the usual schemes, a new growth incentive scheme was introduced last year by the DAA at the three State airports which is due to run until 2014. This scheme is one element of the three pronged strategy announced last year by Government as part of the jobs initiative to encourage inbound tourism. In this regard, the recent decision by United Airlines to operate a new Chicago-Shannon service five times a week next summer is very welcome.
I thank the Minister for his comprehensive reply. He has indicated that the steering groups are on schedule to bring forward a business plan, which was probably part of the original legislation. The Minister spoke about the breaking up of Shannon Development. This very important agency has been of strategic importance to the mid west region and I am very disappointed that this Government has decided to dismember it. The Minister has not spoken about Shannon Heritage, which is really the pool of assets owned and controlled by Shannon Development and consists of the tourism attractors. Examples would be Bunratty Castle and Folk Park and a number of other castles and tourism attractions in the region. Could he identify where he expects those assets to ultimately reside?
Aer Rianta International is a very significant asset. It was created in Shannon and has provided huge revenue to Shannon Airport initially and latterly to the Dublin Airport Authority through the way the three airports were pulled together. What does the Minister intend to do with Aer Rianta International? It is hoped and expected that he will ultimately decide to assign Aer Rianta International to the new independent State airport at Shannon. It would act as a very significant contributor to meeting the bottom line cost to ensure the airport will be able to get through the transition period involved in moving from the protection of the group of airports to going it alone. It would be helpful if the Minister could clarify that matter.
I do not know what the final proposal of the steering group will be with regard to Shannon Heritage. There are three options. It can either become a company in its own right that is totally separate from everything else, a subsidiary of the new Shannon entity or a subsidiary of Fáilte Ireland. Shannon Heritage Limited does a very good job and runs the sites very well so wherever it ends up, it will do a good job.
The general consensus emerging from people I speak to about this is that it would not be appropriate for it to be a subsidiary of Fáilte Ireland because Fáilte Ireland is moving out of tourist attractions. It will either be separate in its own right or, more likely, a subsidiary of the new Shannon entity where it probably belongs. In practical terms for the people working there it will not make a huge difference.
It is the case that Aer Rianta International started in Shannon but it is now almost entirely an international business and much of its investments are linked to the group rather than to one airport in the group. It is intended that Aer Rianta International will remain part of the Dublin Airport Authority which will be renamed. It is also intended, if possible, to allow the new Shannon body to be debt free. Shannon Airport's debts are entirely its debts and they would be much higher were it not for Government measures in the past. If Shannon Airport's debts were to stay with the DAA, they would probably be similar to if not greater than the value of Aer Rianta International if it were sold. One must bear in mind Aer Rianta International has very few assets. It operates concessions but does not own very much.
The Government has made Shannon and the mid-west a priority and I compliment the Ministers, Deputies Varadkar and Bruton, on their work to date. I welcome the fact the work of the task force is on schedule. This work will result in the dawning of a new era for Shannon and it is important that is brought to a conclusion as soon as possible. Does the Minister have plans in place to appoint a board and to appoint a chief executive officer? Will he indicate a timeframe for this? What is the Minister's view on how Shannon Airport will work? Is he optimistic about separation?
Send on the CV.
I agree with Deputy Carey. I am very keen to bring this project to a conclusion. Like most things I have started in this job, it has taken longer than I thought for various reasons, and there are always complications, but we are on target for mid-November. If all goes to plan, it would make sense to appoint a board and begin the search for a chief executive officer sooner rather than later.
Given the work done by the aviation development task force, I am increasingly confident that separation will work. There is genuine and real interest from industry in investing in Shannon. The infrastructure is in place and it does not involve building runways or hangers or involve support from Government. All it requires is the right business deals. The reports I have received on the work of the task force are very encouraging.
I call Deputy Kieran O'Donnell who represents the Limerick interest.
Limerick and the mid-west.
Just do not claim the airport.
Many Limerick people have worked in the airport over many years. It has been a very positive reciprocal arrangement.
I welcome the comments made by the Minister, Deputy Varadkar. I compliment the work of the aviation business development task force led by Rose Hynes and the change management task force led by John Fitzgerald. With regard to separation, from a regional perspective it is very important Shannon Airport is put on a sustainable financial footing by being debt free and being able to promote the airport as a destination. The ancillary activities are crucial and we must never lose sight of the fact it is an airport. I ask the Minister to be conscious of this.
I welcome the fact the Minister expects to receive reports from the two task forces in mid-November. When does he expect that he and the Minister, Deputy Bruton, will bring the reports to Cabinet for approval to progress with separation? When does he expect a formal announcement to be made on appointing a board and chief executive officer? When does he expect to make an announcement on corporate governance and the financial structure?
I represent the constituency of Limerick city, which includes a portion of County Clare, and I am very glad to represent it. The people of the mid-west are looking forward to having an airport for the region. We want a good take-off and the two elements required for this are corporate governance and a proper financial structure.
The Deputy has made a very valid point. The new Shannon company needs to be on a sustainable financial footing. Quite evidently there is no point in doing it otherwise. However, it also needs to be commercial. Quangos and State agencies are on a sustainable financial footing because they receive money from the Government. I do not want this to be a quango or a State agency. I want it to be a successful company which is on a sustainable financial footing from day one and which, from then on, will have to make a go of it. If it is successful, it will succeed, grow and improve each year. If it is not it will not, and this is the risk that arises with any commercial venture.
The Minister, Deputy Bruton, and I expect to bring the conclusions of the working groups to Cabinet in November and all things going to plan, assuming we will have Cabinet support, I expect to proceed with appointing a board by the end of the year, which will then recruit a chief executive officer. Asking me how long it will take to recruit a chief executive officer is a different question and I cannot answer it. Something else I have learned is that it can take a bit of time to do this.
When does the Minister expect it will be made known in the public domain that the formal corporate governance structures have been put in place? When will the final Cabinet proposal for the future structure of Shannon Airport in its separated form be known?
The intention is to publish the plan for all to see and begin implementation in November, and if not in November by the end of the year. We are in limbo and huge patience has been shown in the region on this point. I do not want us to be in limbo for much longer. The plan is to have everything done and dusted and agreed by Cabinet by mid-November, or at the end of the year by the latest, and then to begin implementation immediately. The legal work on separation and the business plans could take time, but for all intents and purposes the company could be established with its own board and be running itself in the new year.
I thank the Minister for his response. The steering group is very important, as are the growth incentives and the recent announcement made by the Minister on the five flights between Shannon and Chicago. It shows we can look for new routes and find them. A debt exists and I am not clear on how appointing a new chief executive officer or directorship will deal with it. Will the State take some responsibility for the debt? Are we still considering selling off State assets? I am concerned that Shannon Airport would be one such asset. It has given phenomenal service to the mid-west and the country over the years.
There is no question of the State taking on the debts of any airport. There is potential to work out the debt whereby the debt would stay with the DAA which would continue to pay interest on it but it would no longer have to cover the operating losses which exist at Shannon Airport. It could be done in such a way that it would not seriously impact on the balance sheet of the DAA, or what will be the new DAA which will have a new name, taking into account that it will not just be a Dublin body. This must be worked out, but there is certainly no question of the Exchequer taking on the debts of any airport.
There are no plans for the sale of Shannon Airport to a private buyer, nor has there been any expression of interest. If someone was willing to invest in the airport, one could not turn a blind eye, but it has not arisen and there are no plans in that regard.
I thank the Minister for his frankness, but he and I differ significantly as regards airports. He believes that they should be commercial ventures. While I accept his point about putting them on a secure financial footing, he has also stated previously that, after being given the best chance, they either take off or crash land. If we are serious about balanced regional development, which has been a hallmark of successive Governments, one cannot view an airport, which is critical infrastructure, as a commercial venture no more than one can view the tunnel connecting counties Clare and Limerick under the River Shannon in the same way. My colleague, Deputy O'Donnell, will appreciate that. While the airport is such a venture to some extent, the State underpins it and underwrites the losses.
A question, please.
Will the Minister review the Government's policy position on airports such Shannon and Knock, the former in particular, given its strategic access to the region? It should not need to be positioned as a commercial venture.
Having recently been briefed by Ms Rose Hynes, I was encouraged by the work of her steering group. I compliment her in that regard. Passenger traffic will be the airport's core activity, but I wish to discuss new business. I do not know how much the Minister can say today, but it would be helpful if he could tell the Dáil about the new types of activity he envisages for the airport and the business and jobs such activity might generate.
To advise Deputy Dooley, it would be a major mistake to start a new company by telling it that it would be underwritten and that it would have a pile of money as a safety net if something went wrong. One way to ensure that a commercial venture fails is to tell it that it does not need to succeed. We must put it up to Shannon Airport to succeed on a commercial basis. It can do it.
The Deputy mentioned balanced regional development. The Shannon Foynes Port works on a commercial basis in the region, as does Galway Port. The west is not such a basket case that it cannot be a commercial success. We should aim for commercial success as a starting point. There is a risk in even suggesting otherwise or in giving people licence not to succeed by putting in place safety nets, subventions, etc.
I compliment the task force on its work. I appreciate the phenomenal pro bono work of Ms Hynes and Mr. John Fitzgerald, the chairpersons.
Shannon Airport is predominantly a passenger airport and will continue to be so. We hope to regain some lost business in terms of passengers and aviation firms, but the discussions with the businesses in question are commercially sensitive and I cannot go into them in detail.
I have come to this debate late, but could Shannon Airport be a location for the Air Corps? It could be a base to help in the policing of fishing fleets and so on off the west coast. We could think laterally.
It would protect Government Deputies.
The Air Corps could move from Baldonnel.
Decentralisation mark 2.
That is a question for the Minister for Defence. Deputy Mathews can ask him about the matter. As we have a small airforce, moving to Shannon Airport would mean closing Baldonnel. The Coast Guard is doing well operating out of Shannon Airport. I would need to pass the Deputy's suggestion on to the Minister for Defence.
It would get the rendition flights.
