Dáil Éireann díospóireacht -
Thursday, 3 May 1990

Vol. 398 No. 3

Written Answers. - Soviet Trade.

Ruairí Quinn

Ceist:

24 Mr. Quinn asked the Minister for Tourism and Transport if he will outline the extent of activities between Aer Rianta and the Soviet authorities; the value of same to Aer Rianta; the extra jobs which have been created; and if he will make a statement on the matter.

Minister for Tourism and Transport (Mr. S. Brennan)

Aer Rianta have a long standing commercial relationship with the Soviet Airline, Aeroflot, which operates air services from the USSR to South America via Shannon Airport.

In 1979 Aer Rianta entered into an agreement with Aeroflot to construct a special aviation fuel storage facility at Shannon which enabled Aeroflot to import Soviet fuel for their aircraft using Shannon Airport. This led in 1983 to a barter arrangement whereby Aer Rianta receive Soviet aviation fuel as payment for airport charges in respect of the Aeroflot aircraft using Shannon Airport. This aviation fuel, as well as fuel purchased from Aeroflot, is sold by Aer Rianta to other airlines at Shannon Airport. These arrangements are of considerable importance for Shannon. Last year, Aer Rianta's revenue from the sale of Soviet aviation fuel amounted to £5.5 million.

In addition Aer Rianta established at Shannon in 1988 a facility for the painting and refurbishing of Aeroflot aircraft. This project has led to the creation of 50 jobs and had a turnover of almost £5 million in 1989.

Aer Rianta's joint venture activities with Aeroflot in the Soviet Union commenced in 1988 with the opening of duty free shops at Moscow Airport. Since then Aer Rianta's range of activities in the Soviet Union has expanded considerably and extends to: the operation of duty free shops at Leningrad International Airport which opened in mid 1989 — a bar was opened later in the year; the provision of in-flight duty free sales on all Aeroflot international flights out of Moscow; the management and sale of advertising space at Moscow and Leningrad Airports; and the operation of a downtown shopping centre in Leningrad.

I am informed by Aer Rianta that agreement has been reached on similar joint venture projects at other locations in the Soviet Union and a number of these will commence business in 1990. The joint venture projects in the Soviet Union generated turnover of just over £20 million in 1989 and gave rise to the creation of about 120 new jobs for Irish workers at Shannon and in the Soviet Union.

In addition to the direct employment created by all of these activities, there are other positive spin-off employment effects for Irish suppliers of goods and materials and also in the building and design sectors.