Dáil Éireann Debate, Wednesday - 16 January 2013
392. Deputy Michelle Mulherin asked the Minister for Jobs, Enterprise and Innovation the amount of Shannon Development's and of Shannon Airport's respective pension liabilities and whether or not same will be transferring to the new company; and if he will make a statement on the matter. [1008/13]
View answerThe Government decided in November to proceed with the separation of Shannon Airport from the Dublin Airport Authority (DAA) and to merge it with a restructured Shannon Development to form a new commercial entity in public ownership. Following from this decision, an Order was made last month by the Minister for Transport, Tourism and Sport which separated Shannon Airport from the Dublin Airport Authority and put Shannon Airport in the ownership of the Shannon Airport Authority, pending the creation of the new company.
In accordance with the Government decision, my Department will be working closely with the Department of Transport, Tourism and Sport to oversee transitional arrangements in both Shannon Development and the Shannon Airport Authority and to ensure the full implementation of the Government decision in relation to the establishment of the new company and the transfer of the assets and staff of Shannon Development to the new company in accordance with that decision.
As the Deputy will be aware pension liabilities are difficult to estimate precisely as it is not always clear when staff members will retire. However, it may be helpful to the Deputy to note that Shannon Development pension payments in 2012 were as follows:
Pension at Retirement: €2,540,950 (excluding admin costs of €54,000).
Retirement Gratuities: €839,000
Post Retirement Pension Increases: €894,993
Supplementary Pension: €198,036
Following the enactment of the Financial Emergency Measures in the Public Interest Act, 2009, the costs of retirement pensions and retirement gratuities are borne by the Exchequer. However, as Post Retirement Pension increases and Supplementary Pensions costs are currently funded by Shannon Development, the issue of funding for the future payment of these costs is currently being addressed in discussions between my Department and the Department of Public Expenditure and Reform.
In relation to the Shannon Airport Authority, I am informed by the Minister for Transport, Tourism and Sport that pension arrangements in the commercial State sector are a matter for the members and participating companies in any pension scheme and for the relevant Trustees. The State airports, including Shannon Airport, operate to a commercial mandate under the aegis of the Minister for Transport, Tourism and Sport.
