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Dáil Éireann díospóireacht -
Wednesday, 18 May 1983

Vol. 342 No. 8

Return to Writ: Donegal South West. - Shannon Free Airport Development Company Limited (Amendment) Bill, 1983: Committee and Final Stages.

Section 1 agreed to.
SECTION 2.
Question proposed: "That section 2 stand part of the Bill."

Unfortunately due to circumstances I was unable to contribute on Second Stage but what I would say in general terms would be covered by section 2, which makes provision for an increase in the amount that the Minister for Finance may subscribe in taking up shares in the company and which therefore covers all activities or possible activities of the company.

This is the first debate in this House specifically on this company since early 1978 when we had a livelier debate than appears to have been the case today. I put forward some proposals which were the subject of very considerable criticism in this House and elsewhere, particularly in the region, and it is gratifying to me as a mere human to read some of the figures given by the Minister today which were achieved as a result of the policy change made in 1977 and 1978. That is now five-and-a-half years ago and it is time there was another major shake-up of this company. One of the reasons I felt it was necessary at that time was that the company had got into something of a rut. They had been doing the same thing for quite a long time, admittedly successfully enough. It is important that both small and large State companies should have to rethink their position or have somebody rethink it for them at suitable decent intervals like five or six years. This is a suitable decent interval.

Although it was not adverted to today by the Minister of State, I understand there is something of a shake-up going on and this time it is self-generated by the company. This is a good thing. It is a pity the Minister of State did not go into this matter in more detail. I simply advert to the fact that it is happening and it is causing certain tensions within the company. That, in my experience, is a good thing. It will get that company back to looking at realities again in a vivid way and I feel they will respond on this occasion as they did in 1977 and 1978.

There is a danger always with State companies that the company itself, its very existence and the welfare of those who are in it will begin after a period to become superior to the purpose for which it was founded. We have all seen it happen in other companies and it is good that it is not the case in this company.

If there is any one objective to which this company should address itself at this stage of its existence and in the circumstances of the region it services it is the whole question of the Shannon Estuary and its development. It is tragic that the estuary is as relatively underdeveloped as it is. The airport has existed for close on 40 years but there is inevitably something slightly artificial about the airport. It has been preserved and will be preserved, but there is a certain artificiality about it from which one cannot get away. There is no artificiality about the finest deep water natural harbour in western Europe. God put that estuary there; Seán Lemass or whoever put the airport there. Seán Lemass's work could be undone by circumstances but God's work will never be undone. If I were Minister for Industry and Energy at present I would tell the company — and if necessary bring in enabling legislation — that their task is to tackle that estuary, develop it and make it in practice what it is by nature, the finest deep water port in Europe. If we as a nation fail to develop that most valuable asset, we have only ourselves to blame for a lot of the problems we face today.

Unhappily there are many jurisdictional disputes going on in relation to the estuary. We had the standard pat reply from the Minister of State today when he said that it is really a matter for the Department of Transport. It does not matter a damn what Department are supposed to deal with it. Are we so insular in our thinking that we have to keep fobbing off a problem or, in this case, an opportunity from one Department to another, each saying that technically it is the responsibility of another Department? We will make no progress if we continue to think on those lines.

As a first step towards the development of that estuary I made an effort over a couple of years to get the various harbour authorities to co-operate and there is a long, sorry history to it. I failed to get one of them to co-operate. I got other able people to try and they failed too. There is only one way that the development will come about and that is by the Government as a whole, not just one Department or one Minister, taking the problem by the scruff of the neck and saying "Look, if you do not agree we will bring in legislation and it will be law whether you like it or not and you had better agree". That is what I put to them in 1981 but a general election was held and the Government changed and they breathed a sigh of relief. When I was back in Government I was not there long enough to do anything towards bringing the matter to fruition.

That is the approach that should be agreed across the floor of the House, that irrespective of which of us are in Government in the next three or four years we will see this thing through, that some small parochial objection will not be allowed to stand in the way of a major national development that will benefit not just the region but the entire country. It will bring business and traffic into the country to an extent not known up to now and it will generate an enormous number of jobs and very considerable commercial and industrial activity. I think we could agree that simple matter across the floor of this House and not allow some very small local, unelected body to stand in the way of that type of progress.

There is a somewhat unhappy history of the efforts made by numerous people to bring about unity in the estuary, which looked like coming to fruition in March 1977 when a Bill was published. Unfortunately the Bill which was published by the then Minister for Transport and Power did not reflect the agreement that had been reached after laborious negotiations during several previous years between the parties involved. In particular, it sought to undermine the position of one of the authorities concerned and as a result, that authority has been reticent — one might almost say obstructive — since then. It is not fair to blame that authority as if there was no background to the whole business. The authority were badly treated. People gave their word to them and they entered into an agreement, but people other than those at Foynes broke their word. That is why Foynes has been so unenthusiastic in recent years. It should be explained to those people that there will not be a repeat of what happened at the beginning of 1977, that agreements reached will be honoured, that a Minister will not change an agreement behind closed doors as a result of certain local pressure and that a Bill, as agreed, will be implemented. That would be an important stage, but only one stage.

In a region as divided in terms of counties, local authorities and harbour boards as is the mid-west region and the Shannon Estuary what is needed is a slightly independent body to act as a catalyst and SFADCo are the ideal catalyst in this situation. There is a limit to what that body can do in the airport, with regard to industrial development in the estate and in relation to the development of small industries, although they have not reached that limit by any means. They need a task to which there is no foreseeable limit, which will be a major benefit to the country and which will confer enormous advantages to the entire nation. That task should be given to them. It should not be looked at in a compartmentalised, departmentalised way by Departments. It should be looked at by the Government as a whole, who recognise this outstanding natural asset and who want to develop it for the benefit of the country. I suggest to the Minister of State that this is an opportunity that should be taken. We can indicate agreement across the floor of the House, that, irrespective of whatever changes in Government may take place in the months and years ahead, a programme of the kind broadly outlined by me will be followed through. It will inject tremendous vigour into the area and will re-inject vigour into the company which is the subject of this debate. It will give them a real worthwhile national challenge to pursue.

On the question of urban renewal, which was dealt with by the Minister and which is paid for under moneys authorised in section 2, I am pleased at the success of the work undertaken by the development company in Limerick city. This was done jointly with the corporation at my suggestion some years ago and I am happy to have seen it come to fruition. The work which has been done in the Granary is worth inspection by any Member of this House who wishes to see what can be done with the restoration of an important old building, not just as a museum piece but as a living commercial entity. I would like to think that the Kilkenny Design Workshops, particularly after the passage of recent legislation, might be in a position to help more positively.

The Deputy is moving away from the Bill. He should stay in his own region.

I am about to seek to install this worthy body in my own region and to suggest that they take up the 10,000 square feet reserved for them in the building I mentioned in Limerick city. The taking of other space is contingent on the Kilkenny Design Workshops going ahead with their original proposal to take a lease of a significant part of that property. Perhaps I am better aware than most of the reasons why the Department of Industry and Energy and the Department of Finance should have considerable reservations about the Kilkenny Design Workshops entering into retailing, but I think circumstances have changed and at present such a venture would be justified. The Dublin shop is now profitable and the capital situation of the organisation has been properly restructured by the recent legislation.

Without dwelling too much on it, I should like to come back to the perennial problem so far as Shannon Airport is concerned, namely, Aer Lingus. The latest news I have with regard to the transAtlantic situation is that at the end of this week Aer Lingus are terminating their cargo service from Chicago and Montreal to Shannon, which is very regrettable. It puts the always difficult situation at Shannon into even greater difficulty. It is a pity that the national airline does not utilise this airport to a greater extent. I have heard all the arguments for and against trotted out time and again in this House in the past decade or more. Essentially they have not changed, but neither have my views on the matter. Aer Lingus can hardly claim that by their action they are making or saving money because their losses on the Atlantic route seem to get greater with every year that passes. It is very disappointing that the cargo operation at Shannon is so limited. It is very disappointing to hear, as I did over the last year or so, instances of industries in the west using Gatwick as their air base.

The Deputy is getting further and further away from the Bill.

I am talking about Shannon.

I can see us in New Zealand shortly.

Using Gatwick rather than Shannon, even though those industries are in the west of Ireland, because the services are inadequate —

I appreciate the Deputy's concern for the airport but this is SFADCo.

SFADCo are responsible under the principal statute of 1959 for the development of traffic at Shannon Airport, so I think it comes within the scope of the Bill and the section we are discussing. It is a pity that the cargo operations are so limited, that the opportunities seem to be diminishing rather than expanding and that the service to industry is limited to the extent it is. There are other matters I would like to refer to but I will not trespass further on the time of the House at this stage. I would like to thank the Chair for its tolerance in this matter.

Deputy O'Malley, being a former Minister responsible in this area and representing the region like I do, has made a very significant speech in regard to the further role of SFADCo in discharging their responsibilities under section 2. I want to make some comments regarding the difficulties they will have in areas other than those which have been touched on in realising their full potential in the next few years in the same way as they have done, as shown by the Minister's figures, in the last few years. The Chair must be aware, living like myself in Nenagh on the perimeter of the region, that the climate for industrial development at this stage is very unhealthy. The role of SFADCo has always been to promote the small indigenous industries in the region. I am all too aware unfortunately — as the Chair must be — that in North Tipperary, particularly in our home town, that the indications clearly are over the last few months that far from there being developmental activity in the region we are now witnessing closures instead of openings and we are not seeing anything to encourage the entrepreneurial activity and the spirit which was essentially the role of SFADCo in their extended activity throughout the region.

We can give all the money we wish through extra share allocations to SFADCo, and even give them extra powers, but unless the climate for industrial development in the region and throughout the country is healthy, I am afraid SFADCo will not be able, even with the extra capital we are voting to them, to do anything like as much as they have done in the last few years under the Fianna Fáil Government. The unfortunate fact is that what we are witnessing in the Chair's and in my home town at this stage is quite the opposite. I wish it were not so. The Fianna Fáil record, through the development of new industries, whether by SFADCo or the IDA, has been one of consistent progress. The record of the Coalition, on the other hand, has been negative. I hope a group as committed to development as SFADCo are will at least be able to generate more hope than is currently in the region and throughout the country. Words, votes and new developments alone will not solve this if the climate nationally is for industrial development where the entrepreneur will not be able to feel for one reason or another he is a self-employed person who is only interested in lining his pocket at the expense of other taxpayers. That is a view which is conveyed all too freely at this stage.

We witnessed some exciting developments over the last few years in North Tipperary when we extended the role of SFADCo. One of the significant things was the natural competition between SFADCo and IDA in the region. The region has benefited from that. You must always have an incentive to keep everybody on their toes. I have seen in relation to the developments which have taken place, particularly in Nenagh and in North Tipperary, what has come about by way of industrial development either through the IDA or SFADCo arising from the fact that they were both vying with each other to demonstrate what can be achieved. I am afraid that even that kind of competition is not likely to give rise, in the current depressing economic climate generated by this Government, to any development of new jobs to take up the unemployment in what is regarded as a wealthy, prosperous region such as the mid-west.

There are a few other points I want to make in relation to the development of SFADCo and what might be achieved. I agree entirely with what the former Minister said. I would like to make a point, following on what the Leas-Cheann Comhairle said in relation to our natural indigenous industries in the region, particularly food processing, which is essential if we are to come through the recession, that marketing is one of the weaknesses of the food processing industry although the Co-op society have demonstrated that they can branch out into new markets. They are a great credit to all concerned. We have seen some examples of that recently in relation to the prize which the Leas-Cheann Comhairle presented to the Nenagh Co-op creamery. This shows the marketing expertise they are developing.

We have other food processing industries in the region, such as Erin Foods, which could do with a great injection of management expertise, particularly in the marketing area. Under the new policies which were proposed at a time when I had some involvement in Europe, one of the areas seen as essential was management training for small industries from the Social Fund allocations. Hitherto this was channelled mostly through AnCO. I would like to see it being channelled from AnCO to shop floor employees. We need to keep management abreast of new techniques and developments, especially in relation to marketing, accounting, which many of them find to be complex provisions, such as we will find in the Finance Bill, which are more than they can cope with. We need to support management in dealing with these areas. I hope SFADCo will be given very significant encouragement to strengthen that element of their activities.

This section extends the capital to SFADCo. That said, let it be clearly understood that if the Government say or do anything to dampen the spirit of enterprise and fail to encourage investment then not even SFADCo with the extra money they are being given will be able to correct the decline we have seen in our constituencies. There is no point in asking them to achieve the impossible. We must create an environment in which they can discharge the role we are encouraging them to undertake.

I listened with interest to the Minister of State's reply but did not get a clear answer as to what the Department's attitude might be to extending the role of SFADCo to pioneer the development of the food industry. Perhaps he might be able to respond if he feels it is a worth-while idea to appoint a Minister with a single responsibility. He might convey that idea to the Minister and to the Government. This is a nettle which has not been grasped. We need action in this area. I made moves in that direction when I was Minister.

Perhaps the Minister would let the House know the present position regarding the cross-Border study for free port development between north-east Donegal and the Derry region? I understand the Government would back it. There are non-quota funds available for the project from the EEC. It probably only remains for the British Government to back it. What stage is it at now? The study was initiated a few years ago.

First of all I shall deal with the point about a uniform harbour board for the Shannon Estuary. I am not against the innovation and accept the philosophy of Deputy O'Malley. However, one must also understand that self-help is best help. If the people of the region are not willing to see their future in the context of a unified harbour board it makes it more difficult for the Government to be of assistance to them. When the three-year review being carried out by the consultants and when the 20-year plan are completed if any suggestions regarding innovations in the area are made we will consider them. If there is dissension locally it will make it more difficult for moves in that direction.

Deputy O'Malley suggested that Aer Lingus are to terminate the Chicago-Montreal cargo service. My information is that SFADCo are not aware of the termination. Flying Tigers, a cargo airline, have recently commenced a weekly cargo flight from Shannon to the United States. As regards the Kilkenny Design Workshop, I am not familiar with the details of this but I will make inquiries and contact the Deputy.

As regards Deputy Reynolds's query about the food industry, as former Minister he is aware of the debate which was going on. There was no conclusion to it but I see the sense of having a single Minister in charge of the food processing industry and will bring this matter to the notice of the Minister. In relation to the cross-Border study I do not have the information sought by the Deputy. I will convey his query to the Minister and have him contact the Deputy directly. Deputy O'Kennedy referred to the environment for industry. An environment for industry is not created by a Government in six months. This Government are not in power for six months and cannot be blamed for our adverse industrial climate. I do not wish to be political but nobody on the other side of the House is entitled to blame the Government for our industrial climate. However, we can deal with that on another day.

The budget and some elements of the Finance Bill do not help.

Question put and agreed to.
Sections 3 to 7, inclusive, agreed to.
Title agreed to.
Bill reported without amendment and passed.

I thank Deputies for their constructive approach to the Bill. The Leas-Cheann Comhairle was very liberal.

Bill to be sent to the Seanad. This Bill is certified a Money Bill in accordance with Article 22 of the Constitution.

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