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State Airports.

Dáil Éireann Debate, Tuesday - 4 July 2006

Tuesday, 4 July 2006

Questions (458, 459)

Trevor Sargent

Question:

469 Mr. Sargent asked the Minister for Transport if he will commit to funding the €53 million economic plan drawn up by the Mid West Regional Authority in consultation with others in response to the ending of the Shannon stop-over and the beginning of open skies; when he will commence funding the plan; and the amount his Department will commit to the plan over the next five years. [26219/06]

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Written answers

In announcing the agreement reached with the US authorities last December in relation to a transitional arrangement for Shannon Airport in the context of the proposed EU/US ‘open skies' I indicated that I would prepare, in consultation with my colleagues, the Minister for Arts, Sport & Tourism and the Minister for Enterprise, Trade & Employment, a tourism and economic development plan for Shannon and the West of Ireland.

Preparation of this plan is at an advanced stage and I have received a number of inputs to the process. The Deputy refers to one of these inputs from a local liaison group under the chairmanship of the Clare County Manager. The Deputy will appreciate that at this stage of the process it would not be appropriate for me to comment on any specific aspects of the plan.

Trevor Sargent

Question:

470 Mr. Sargent asked the Minister for Transport further to comments (details supplied) by the chairman of the Dublin Airport Authority that Shannon Airport is losing money, the way in which he, with the DAA and the SAA, will overcome the problems outlined by the person in a presentation to the Joint Committee on Transport on 20 June 2006 on Shannon becoming independent; and his views on whether separation of the airports can occur before May or June 2007. [26222/06]

View answer

The State Airports Act, 2004 provides the framework for the establishment of Shannon and Cork as independent airports. Pending these changes, Dublin Airport Authority (DAA) will continue to own and operate all three State airports. As part of the airport restructuring process the boards of Shannon and Cork airports are charged with preparing to assume full responsibility for the management and development of their airports and certain airport functions have already been delegated to them by the DAA, on an agreed basis.

Under the 2004 Act, both the Minister for Finance and I will have to be satisfied as to the state of operational and financial readiness of the three airports, before any vesting of assets can take place.

Accordingly, all three Airport Authorities are currently working on the production of business plans for the post-independence era. Recognising that the authorities will require coordinated strategies for the achievement of operational and financial readiness, the DAA is overseeing the consistency of the assumptions and strategies in each business plan.

Since its establishment, Shannon Airport Authority, in conjunction with the DAA, has focused on promoting traffic growth through the airport and in this it has been quite successful. However, one of the issues that must be addressed if Shannon Airport is to develop as a successful and sustainable business is the airport's very high cost base.

It has been recognised for some time that costs in Shannon are high relative to comparable airports. This issue is currently the subject of talks between management and the airport unions under the auspices of the Labour Relations Commission.

As I have said before, the plans for establishing Shannon and Cork as independent airports must have regard to the capacity of each airport to contribute to its own capital investment programme.

These are complex issues that the airport authorities must consider carefully and, as I have stated previously, I have not imposed any artificial deadlines for the completion of this process. My Department will continue to liaise with all three authorities on the business planning timetable taking account of the key issues that I have mentioned.

Question No. 471 answered with QuestionNo. 445.
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