A Chathaoirligh, I appreciate that you have many calls and claims on the time allocated to the Adjournment and I am pleased you recognised that this is a matter of such significant importance that it may be raised this evening.
The situation in Shannon as a result of the Government's decision to change the transatlantic status of the airport is significant and there is much concern in County Clare and in the mid-west region regarding the fallout of that decision. I am pleased that the Minister is here this evening to answer a number of questions I will be raising in relation to the issue.
Since the decision there has been an examination locally in relation to the fallout in the region. There is particular concern with regard to the effect this decision will have on industrial development and industries in the area, not only in County Clare but as far south as County Kerry, as far as County Tipperary and indeed up to Loughrea in County Galway. There is concern in relation to the effects lack of direct flights around the entire year may have on the industries in these areas because they have relied in the past on the New York flight in the morning arriving at Shannon to provide them with material. What is the future for those factories and similar industries who might have decided to set up industry in the region if the transatlantic status had remained?
Will the Minister and his colleagues in Government undertake an impact study on the economic and social fallout of this decision in County Clare and in the entire region? I am seriously concerned about this matter, that the Government undertook this decision solely in respect of the criteria relating to Aer Lingus and did not consider the overall situation in the region. The economics of the region were not considered in coming to a decision in relation to the status of Shannon. Arriving at the decision the Government was severely handicapped, as it had not considered the overall problem when it decided to change the status. That is unfortunate and it now behoves the Government to undertake an impact study on the potential fallout of its decision.
Another matter that arises is the overall impact of the change in the system occasioned by the 50/50 proposal under the amended bilateral agreement. Under this agreement, 50 per cent of scheduled flights are supposed to operate direct to Dublin and 50 per cent to Shannon and similarly with charters. There is concern in relation to this issue because automatically there will be an immediate loss to Shannon when this agreement is implemented. I gather the agreement can be operative immediately and will definitely be operative from the beginning of the next season commencing in April 1994.
Shannon has been getting direct flights, termed international flights. The airport and Aer Rianta, on arrival of a plane at Shannon, were paid international charges or international dues. As a result of the change, many of the flights now coming back through Shannon will be classified as domestic flights and there will be a reduction in the landing fees of over 80 per cent on 50 per cent of them. That will mean substantial loss of revenue to the airport resulting in deep concern in relation to the revenue accruing to it.
In addition there is grave concern in relation to the catering services and the flight kitchens in Shannon which have been providing the catering facilities for transatlantic flights. There is now a question mark over their future, where they stand and what the situation is for those working in flight catering kitchens. Equally there is much concern in relation to the reduction in transit passengers in the shops at Shannon. There is a fear that there will be a serious fallout for these shops. On a general note, therefore, there is great concern in the airport regarding potential job losses in the immediate area of catering, shops and in baggage handling by Aer Lingus staff on the ground.
Regarding the flights themselves the Minister must clarify a number of issues, I especially refer to the bilateral agreement. A flight operating directly to Dublin, then to Shannon and from there to Boston or New York or wherever is known as a round robin system. Could the half leg from Shannon on to the USA be classified as a direct scheduled flight and could that half leg fall into the category of the 50 per cent? There is need for urgent clarification of this issue.
The biggest charter airline operating into Ireland last year brought in approximately 27,000 people, 20,000 of whom were brought to Shannon and 7,000 to Dublin Airport. If that airline charter facility is to continue it will operate under the new system and there would have to be 50/50 throughput between both airports, 13,500 people to Shannon and 13,500 to Dublin. Huge difficulties can arise in the charter business if this situation is implemented. Is the Minister in contact with the authorities in the USA to further review the system, especially in relation to charters, because I do not believe that the present proposal is viable? Furthermore, I do not believe that even Aer Lingus is happy that charter flights are getting this same facility or that this is being directed as a 50/50 operation. Effectively, by allowing charters the 50/50 facility there will be further competition against Aer Lingus to the Dublin route and that is highly unsatisfactory. The situation needs to be clarified. We must know, for instance, if there will be a 30 per cent reduction in the number of people who will arrive into the mid-west region under the current proposal.
One of the issues of serious concern to the people in the mid-west is what type of monitoring system will be introduced by the Minister and his Department to ensure that there is a fair crack of the whip in relation to the arrival of flights. This matter has been raised with the Minister at a number of meetings, and I am raising it again this evening. The mid-west region does not rely on — and cannot depend on — the type of system that currently operates. There is a need for the Minister to establish an independent body to operate and monitor the type of scheduled and chartered flights that arrive in Dublin and Shannon to see that there is a fair crack of the whip. We are especially concerned that a promotional programme will be engaged in which could result in Shannon being bypassed. This is of great concern in the mid-west region. The Minister, in conjunction with the Minister for Tourism and Trade, should specially direct Bord Fáilte to undertake an active and strong promotion in relation to tourism to the west. It would be unfortunate if semi-State operations, such as Bord Fáilte and Aer Lingus promoted Dublin and the Dublin region to the diminution of the mid-west and the County Clare region. That is a matter of great concern and I ask the Minister to give an assurance that a special tourism promotion will be undertaken and that he will exhort Bord Fáilte and Aer Lingus to implement an active promotion. It is also incumbent on the Minister, with the Minister for Employment and Enterprise, Deputy Quinn, to ensure that there is active industrial promotion of this region.
There is great concern in the mid-west region and there is now an opportunity for the Minister to assure people they are not forgotten and that constructive steps for active tourism and industrial promotion of the region will be taken to ensure no further jobs are lost. Further investment that would have been made should go ahead and there should not be a huge economic fall out from the Government's decision to change the transatlantic status of Shannon Airport.
