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Seanad Éireann debate -
Wednesday, 6 Feb 2002

Vol. 169 No. 1

Adjournment Matters. - Aviation Report.

I am getting tired of putting down matters on the Adjournment and the Ministers with responsibility, in this case the Taoiseach, not turning up for the debate. I would like an explanation as to why the Taoiseach is not here this evening.

The Chair has no control over these matters.

The Taoiseach as usual is running for cover because he—

The matter was not addressed to the Taoiseach but to the Minister for Public Enterprise.

It was obviously re-jigged somewhere along the line. This was specifically addressed to the Taoiseach because it relates to him specifically. Obviously the Department of the Taoiseach changed it and sent it over to the Department of Public Enterprise. It is despicable behaviour on the part of the Taoiseach and his Department that they have not come to this House to account for themselves in relation to the actions they have taken in the past seven weeks on aviation matters.

An interdepartmental group was set up following the 11 September tragedy to investigate and report because of the fall out in relation to Shannon Airport where there will be 700,000 fewer passengers this year. This will have a massively negative impact on the tourism industry and other industries along the west coast. The Taoiseach has cynically used this tragedy to get his agenda completed which is to proceed with pier D in Dublin Airport. The interdepartmental group was pulled together and they reported, just as the Taoiseach wished them to, with recommendations that he specifically required. When this report was put to Aer Rianta it was found not to be a viable economic proposition, given that there was surplus terminal capacity at Shan non Airport. Aer Rianta had proposed to go down that route in relation to low cost airlines.

The Taoiseach, not satisfied with that and having been refused by Aer Rianta, went a step further. It was his Department, not the Department of Public Enterprise, that employed the aviation expert in the person of Professor Rigas Doganis, a London based aviation expert of Greek origin who was sent to make the report. It is interesting to note from his report that what he was given was the recommendations of the interdepartmental group upon which he was asked to comment, summarise and assess. It was geared in a specific direction to conclude with a recommendation to go ahead with pier D at Dublin Airport.

I wish the Taoiseach was here to answer questions. Why did he not accept the expert advice from the aviation section of the Department of Public Enterprise? It was clearly reticent about proceeding with pier D. Why did he reject the advice of Aer Rianta, the body responsible for managing the three State airports? Why did he and his Cabinet not accept Aer Rianta's advice to use Shannon Airport as a hub for low-cost airlines? Does the Taoiseach feel he has a divine right to ram through Cabinet anything on his wish list? That is how it appears. The Taoiseach has only to click his fingers and his Cabinet will row in behind him. As the Government is facing an election he can do what he likes.

This decision by Government is not in the national interest and it is appalling that the west should be so badly affected. The Taoiseach and his Government have made a decision that will bring further numbers to Dublin and expand its airport's capacity. That will lead to greater congestion and mayhem than already exist, leaving the west denuded of tourists and Shannon Airport operating at half capacity. That is not in the national interest.

One might be cynical in suggesting that the Taoiseach is serving a vested interest. The vested interest he appears to be serving is that of Michael O'Leary and Ryanair. It is interesting that Michael O'Leary and his cohorts attended the Taoiseach's fund-raising dinner in rather large numbers some time ago. It is now payback time from the Taoiseach's point of view, but it is a despicable way to proceed. It is appalling that the Taoiseach has not come here this evening to address this issue and to face and answer honestly the questions I have. He does not have the courage to do so. He is facing an election, therefore he decides to keep the corporate sector happy so that it will support his party with contributions and he will get re-elected. That is obviously his ambition, but it is a very cynical exercise. It is appalling that such a decision can be made against regional and national interests. I hope he will have the courage at some future date to come before this House to answer the questions I have asked this evening.

Undoubtedly, the Minister of State, Deputy Moffatt, for whom I have the highest respect, has been sent here with a script which has been directed from the Taoiseach's Department to the Department of Public Enterprise. From the way that the Minister for Public Enterprise acquitted herself last night on television, anybody could see she was none too happy with the way she was over-ruled by the Taoiseach on this issue and with the way the advice of her Department was ignored. There are questions to be answered. I go further and say that this matter should be properly investigated by a committee of the Oireachtas.

I thank Senator Taylor-Quinn for raising this matter on the Adjournment. The Minister for Public Enterprise regrets that she cannot be here to reply.

The Taoiseach should be here.

Having said that, I reject out of hand what the Senator has said with regard to the Taoiseach. It is unworthy of her.

The record of Fianna Fáil in regard to the regional airports, in Government with others, speaks for itself.

Shannon Airport is an international airport.

The Government, at its meeting yesterday, decided to publish the report prepared by Professor Rigas Doganis on Irish aviation and tourism issues for an interdepartmental group chaired by the Taoiseach's Department. The report was placed on the website of the Department of Public Enterprise yesterday afternoon and is available publicly. The interdepartmental group was established last year to examine the possibilities of encouraging additional travel by air and of increasing visitor numbers following the terrorist incidents in the USA last September. Apart from the Taoiseach's Department, the group included representatives of the Department of Public Enterprise, the Department of the Marine and Natural Resources, the Department of Tourism, Sport and Recreation, the Department of Finance, the Department of Enterprise, Trade and Employment and the Office of the Attorney General.

Professor Doganis, an internationally renowned expert on aviation matters, was engaged by the Taoiseach's Department to provide an independent, expert view to the interdepartmental group in its consideration of possible strategies to reduce the impact on the Irish aviation and tourism sectors following the downturn in these important sectors as a result of the terrorist attacks. In its consideration of possible strategies, the group and Professor Doganis had regard to the position of all three State airports, including Shannon Airport.

In its decision yesterday the Government noted the principal conclusions and recommendations of the Doganis report on aviation and tourism issues and the endorsement by the report of the independent airport charges regulatory regime – already in operation – established by the Minister for Public Enterprise under the Aviation Regulation Act 2001. It agreed that the following actions should be taken. The Minister for Public Enterprise is to ask Aer Rianta to proceed immediately with the provision at the earliest possible date of a rapid turn-around facility at Dublin Airport, having particular regard to the planning permission already secured for the proposed pier D, to meet the specific needs of all carriers operating at the lower fares end of the market. The Minister is to monitor closely this project to ensure that Aer Rianta provides the facility at the lowest possible cost, takes full account of the needs of the low fares carriers and has the facility operational in good time for the 2003 season. The Minister for Tourism, Sport and Recreation is to ask Tourism Ireland limited to report to him on the existing consultative arrangements with the air carriers with a view to ensuring a greater degree of co-ordination and co-operation in marketing existing and new services to airports among it, the carriers and Aer Rianta. The Minister for Tourism, Sport and Recreation is to continue to highlight the need for accommodation providers and other tourism industry interests to improve price competitiveness to boost prospects for the 2002 season.

In relation to facilities at the State airports, the Government noted that Dublin Airport has the capacity to cater for a resumption of normal traffic growth and that, while facilities at Cork Airport are already stretched, Aer Rianta is proceeding rapidly with its plans for a new, expanded terminal to deal with traffic growth. Shannon Airport, on the other hand, has ample terminal capacity, but has been more directly affected by the events of 11 September. Recovery of traffic levels at Shannon will depend largely upon the return of confidence among American travellers, a greater focus by the airport on security, more business travellers and a greater emphasis by the airport on securing business from the United Kingdom and continental Europe.

The Government decision reflects the views expressed in the Doganis report that our tourism authorities, as well as Aer Rianta, have an important role to play in the drive to boost incoming tourists numbers. In this regard, the Minister for Tourism, Sport and Recreation will continue to highlight the need for improved price competitiveness among accommodation providers and other tourism sector interests. The Minister will also seek to ensure a greater degree of co-ordination and co-operation in marketing activities for existing and new air services at the State airports, including Shannon Airport, among Tourism Ireland, the carriers and Aer Rianta.

In conjunction with marketing and promotional efforts abroad by the relevant authorities, Professor Doganis expressed broad support for Aer Rianta's expanded incentive scheme for the development of new routes at Shannon and Cork Airports. As the Senator will be aware Aer Rianta is offering zero airport charges for four years to carriers who develop new routes from Shannon and Cork and the company will also provide marketing support for route development promotional activities. Professor Doganis believes this scheme may encourage carriers to launch new services earlier than otherwise planned.

Aer Rianta has recently announced a range of new services from Shannon which are scheduled to start this year. These include a new Air Canada service from Toronto to Shannon and Dublin to start on 1 June, a Skynet service from Shannon to Dublin and Warsaw starting on 16 April and a Ryanair service from Shannon to Paris which will commence on Thursday of next week.

The Minister for Public Enterprise has asked me to emphasise again that Government policy in relation to transatlantic services at Shannon Airport remains unchanged. Indeed the Government confirmed the continuation of the policy in relation to transatlantic services at Shannon in the context of its consideration of the difficult financial situation at Aer Lingus.

There are 68 flights out of Shannon per week.

Order, please.

The Government is committed to maintaining a viable Shannon Airport as well as a viable Aer Lingus. The Minister for Public Enterprise is confident that, despite the current difficulties in the aviation sector, the future viability of Shannon Airport is secure and that it will recover from the recent setbacks following the events of 11 September and grow and prosper, continuing its valuable contribution to balanced regional development.

A Chathaoirligh, I am entitled to ask a question.

You are not entitled to ask a question, Senator, but I will allow you to make a brief comment.

I cannot allow the Senator to widen the debate—

I would not dare.

—because she has received a very comprehensive reply on the position of Shannon Airport and the report has been published.

It is about the reply. The Minister has selectively quoted from the Doganis report and I want to ask him if he is aware that at No. 2 of the summary, on page 17, there is a clear statement that would indicate that the Taoi seach is acting in the interests of Mr. Michael O'Leary of Ryanair. Perhaps the Minister will check that.

That is disingenuous of the Senator. If she knows so much about it, I wonder why she came in here to put down the question.

The Seanad adjourned at 8.55 p.m. until 10.30 a.m. on Thursday, 7 February 2002.

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