Vol. 398 No. 3
8 Mr. Allen asked the Minister for Tourism and Transport if, in view of the recent McCarthy report regarding transatlantic flights, he will consider allowing indirect flights to and from Cork Airport from the United States; and if he proposes to make changes in the requirement to land at Shannon Airport, in view of reports and comments in this regard and also in view of the recent statements made by the chief executive officer of Bord Fáilte.
9 Mr. R. Bruton asked the Minister for Tourism and Transport whether he has studied the recent report on the impact of the Shannon stopover on the development of Dublin Airport; and if he will indicate the grounds for artificial restrictions on transatlantic air traffic.
15 Mr. Quinn asked the Minister for Tourism and Transport if his attention has been drawn to a report (details supplied) concerning the provision of a direct air connection between Dublin and the United States; the steps, if any, he has taken to discuss the matter with the Dublin Chamber of Commerce; and if, in light of the expressed needs of the Dublin International Finance Centre, he will make a statement on the matter.
20 Mr. McCartan asked the Minister for Tourism and Transport the current Government policy on the Shannon stop requirement on transatlantic air traffic in the light of his decision to allow direct charter flights top Cork and Connacht Regional Airports; and if he will make a statement on the matter.
I propose to take Questions Nos. 8, 9, 15 and 20 together.
I am aware of the report to which the Deputies refer. I am also aware of the views of the Dublin Chamber of Commerce and others in relation to the issue of transatlantic air services and the Shannon stop. Deputies will be aware that, in the light of an ongoing review of charter policy, I announced recently that charter flights from North America may now operate direct to and from both Cork Airport and Connacht Regional Airport, without a requirement for a stop at Shannon Airport. That decision was taken with the objective of encouraging the further development of charter services from the United States in the interest of increasing the number of US visitors to Ireland. It will enable the airports concerned to play a more active role in developing charter services from North America, bringing benefits to the local tourist industry in the southern and western regions.
I am continuing to review the charter business in regard to Dublin and should complete this review within a few months. I am not reviewing the scheduled business.
In relation to scheduled services, Shannon Airport is Ireland's sole transatlantic gateway and all scheduled transatlantic air services must operate via Shannon in both directions. As I made clear in my recent announcement, this policy remains unchanged.
Would the Minister not agree that Dublin is the only EC capital where direct transatlantic flights are prohibited? Would he further agree that the fact that scheduled flights have to land at Shannon adds four hours and £8,000 to the cost of the flight and is, therefore, a direct way of undermining the ability of the capital to attract tourism? Would he not further agree that deregulation throughout Europe has proved that all those in the aviation business have gained from it and that, therefore, such restrictions are no longer appropriate?
Let me take the Deputy's questions in order. I understand Dublin is the only capital in that situation. Secondly, £8,000 is a figure in an independent report. I cannot confirm it but I suppose it is as good an indication as any. I do not have more detailed costings myself. Obviously it costs more to land than to keep going so that is common sense. Thirdly, in the context of doubling tourist numbers and being on target to do that, I think our tourism record is moving well. Finally, in regard to deregulation, throughout the United States deregulation is nearly completed and it has its advocates and its critics. In Europe at the Council of Transport Ministers we are agreeing to liberalise transport very substantially, particularly in regard to access, fares, capacity and those types of issues. Yes, deregulation and liberalisation is the order of the day in the aviation industry.
Is the Minister aware the members of the workforce in Shannon consider his recent announcement a breach of faith by the Minister in the context of previous statements and assurances given to them in relation to the future of Shannon Airport? Secondly, does the Minister accept the conclusions of the DKM report on the matter of flying over Shannon as valid and sound economic conclusions? Thirdly, does the Minister see any expansion of Shannon and expansion of the services into Shannon taking place in the near future?
I would be sorry if the union saw it as a breach of faith. I would like them to consider that by standing over the situation in regard to scheduled flights I am ensuring the status of the airport. If they reflect on it they may see it that way. I can understand if they feel otherwise. I did point out that I was not reviewing the status of Shannon, nor am I doing that. I do not believe the charter situation affects the status of Shannon. As I am not reviewing the situation in regard to scheduled flights, I do not have any public views on the DKM report. Finally, I think Shannon has an excellent future. It is much more than just an airport. Shannon has 1,000 jobs coming onstream from GPA. It is developing a new product called Shannon Express where it will try to mop up business from the centre of the UK that would otherwise have to try to go through Heathrow. Instead, it will seek to win business in the centre of the UK to fly to Shannon, clear Immigration in Shannon and fly on to the United States from there. The Shannon Express manager tells me that would save about four hours for somebody travelling from the centre of England to the US. I wish them well with it and I will give them every help to promote that product.
Deputies are also aware of the very substantial Aeroflot involvement in the Shannon Airport region and I am also aware that the airport now proposes to seek to do additional business with the UK and also to seek additional carriers to come to Shannon from the United States. I want to point out that the number of charter flights involved here is less than 10 per cent of the total business that went through Shannon last year so it gives an opportunity to Cork and to Knock, not to take business from Shannon but to do more business themselves. I appreciate Deputy Mitchell's support which he expressed for my decision to allow charters into Knock and Cork.
I am disappointed with the Minister's reply that he is not extending the little concession he made towards the liberalisation of aviation policy. I put it to him that the present situation at Shannon is parochialism of the worst kind.
I suppose anybody speaking for his constituency could be accused of that.
Given the dilution of the status of Shannon but recognising its potential for growth in other fields, will the Minister not agree it is time to honour the request by SIPTU for a meeting — although the last speaker referred to it as a parochial issue? I am sure the Minister will agree that the workforce have given a tremendous performance and the State has benefited tremendously from their performance. Would he not agree that, in partnership with the trade union movement, he should sit down and plan the future development of Shannon, in whatever shape or form that should take?
I very much share the Deputy's salute to the workforce in Shannon. They have been magnificent and I join with the Deputy in paying tribute to them. I want to make clear what we are doing: we are separating the charter business from the schedule business. As I said in my reply, I am continuing to look at the situation in Dublin with regard to charter flights.
Given that the Minister has agreed that removing artificial regulations can help all those involved in the aviation industry and that direct flights into areas can help local tourism, how does he justify the continuing disallowance of direct scheduled flights into Dublin?
I think the Deputy appreciates the difficulties. That side of the House had this difficulty for a number of years and presumably that Government had opportunities to look at the issue. I am doing what is practical. I am permitting other airports to compete for the tourist business by allowing charters to fly direct into two airports at present and I am continuing to look at the situation.
I asked the Minister to explain his policy.
It is the same as your Government's policy except that I have liberalised it to some extent, which I think is an advance.
In view of the minimal liberalisation which the Minister has just referred to, may I ask whether he expects increased pressure from the US authorities and airlines — I am aware that the pressure has been building for the past ten years in particular — in relation to the situation at Shannon? Given that the Minister has, in effect, changed the policy for overflights to Shannon for the first time, does he expect the pressure from the US to increase?
The Deputy is quite right. There has been for at least that period of time representations — pressure may be too strong a word — from US airlines who want direct access to Dublin. They regularly make the point to successive Ministers that they would like direct access but they are regularly told that Government policy is to have scheduled flights stop at Shannon. As I have previously said, I am trying to be practical. I have reviewed the charter policy and have taken action on it. I am continuing to review the charter policy in relation to Dublin but at present I am not reviewing the scheduled flights.
