Vol. 405 No. 1
17 Mr. Byrne asked the Minister for Tourism, Transport and Communications if, in view of the conflicting opinions expressed regarding the impact for the Shannon region of any change in the compulsory stop-over policy in regard to flights from the United States, he will consider commissioning an independent expert report to look at the entire issue; and if he will make a statement on the matter.
20 Mr. Shatter asked the Minister for Tourism, Transport and Communications if he will outline the current Government policy in relation to the compulsory stop-over at Shannon Airport for trans-Atlantic flights; and when the review under consideration by him will be completed.
22 Mr. Kemmy asked the Minister for Tourism, Transport and Communications his views on whether any adverse change in the designated trans-atlantic airport status of Shannon Airport would seriously undermine the efforts to develop new sources of traffic for Shannon and would also damage the economic future of the west of Ireland, particularly in the light of the industrial and tourism recession caused by the Gulf War.
I propose to take Questions Nos. 17, 20 and 22 together.
Current Government policy is that Shannon Airport is Ireland's sole trans-Atlantic gateway for scheduled air services. All scheduled trans-Atlantic air services must operate via Shannon Airport in both directions. Similarly, charter flights from North America to Dublin are required to stop at Shannon, but in one direction only, on either the inbound or the outbound journey at the operator's discretion. The Shannon stop requirement no longer applies, however, to charter flights from North America to either Cork Airport or Connaught Regional Airport.
I have received a number of submissions in recent months from many organisations and individuals arguing both for and against a change in the Shannon stop policy. My Department are at present studying these submissions, having particular regard to their implications for Shannon Airport and the west of Ireland generally, and I have agreed to meet shortly representatives of both the "Fly Dublin Direct Committee" and the "Shannon Status Committee" to hear at first hand their views in the matter.
I have no plans at present to commission an independent study to address the issues raised in these submissions but I will, of course, keep that option open.
I have had extensive contacts with major international airlines in recent months with a view to encouraging them to inaugurate new services from North America to Ireland. I am anxious to explore all possibilities to open up new gateways from North America into Ireland and to secure an expansion in existing services in order to generate additional business and tourism traffic into Ireland. In this context, Deputies might like to know that I have recently granted to Aeroflot fifth freedom rights for services between Shannon and Miami and Shannon and Gander.
In relation to the status of Shannon generally, I can assure the House that the Government are fully committed to the further development of Shannon Airport and the Shannon region as a major centre for economic growth.
I am sure the Minister will agree that these two documents, one produced by the Davy, Kelleher McCarthy group and the one on Shannon mid-west from the Envision group, have been commissioned by business interests in the mid-west Shannon region and in the east with a view to attracting as much business as they can to their respective regions. Will the Minister agree that it would be appropriate at this stage to have a full, open and thorough debate on the pros and cons of this 40 year stop-over at Shannon in view of its delicate nature and the dire — and potentially disastrous — state of the national airline, and Ryanair by implication, because of the difficulties as a result of the Gulf war, and the falling number of North American tourists coming to Ireland? As it was envisaged that Aer Lingus would establish a direct route to Los Angeles, will the Minister agree that it is of tremendous importance to take a decision, one way or the other, given the fact that in the mid-west there has been a decline in investment in hotels because of the Minister's indecision in regard to the stop-over? Will he agree that it would be advantageous——
Please, Deputy Byrne, this has gone on for too long.
Will the Minister agree that it would be advantageous, to break the deadlock, to grant Aer Lingus direct flights from Dublin to North America via Los Angeles?
The Deputy has made his point adequately.
I will, of course, keep open the option of an independent study and I have taken careful note of the Deputy's interest in it. I have come to one conclusion in regard to this issue; the word "independent" does not easily apply to most of the professional advice available to a Minister in this area. There are very few independent people when it comes to this issue as everybody has a very hard and definite view.
I welcome the Minister's statement, which should clear the air, at least in the short term. Will the Minister agree that this is a very bad year in which to contemplate a change in the status of Shannon in the light of the Gulf war, the fall off in tourism and the likely reduction in Aeroflot flights to Cuba and indeed in Aeroflot business generally at Shannon Airport?
It is an appallingly difficult year in aviation. I have met most of the chief executives of the American airline companies and their boards and I get a very clear message that Ireland is not high on their agenda because of aviation fuel costs and the near panic in some of the major international airlines. There is a need to get more airlines in here and I stress that that is the bottom line. We can all argue about Shannon and Dublin and where the planes will land but, at the end of the day, we will not have any landings if we cannot persuade the various international major airlines to fly in and out of Ireland. I must confess that I am less worried about where the aeroplanes land than the fact that we might not have them at all. I am more and more concerned about that aspect of this whole aviation business. Airports are not a problem in this country, airlines are.
(Limerick East): I thank the Minister for restating Government policy. In a recent radio interview the Minister clearly stated that it was not a matter of principle but a pragmatic decision as to whether an additional tranche of business would be attracted to Ireland if direct flights were allowed into Dublin. It is not a matter of principle, it is a matter of attracting extra business. The Minister stated in his reply that he had discussions with airline companies in North America. Will he inform the House whether any of the North American airline companies — either in the United States or Canada — have made a proposition to him to fly direct from any North American location to Dublin? If such a proposition has been made, will he state which company made it? Is he inclined to believe that this would provide extra tourists and business people to Ireland and would not simply divert business from one Irish airport to another?
I do not have any hard and fast definite offers from any airline to fly from North America to Ireland at present. I have conveyed to all airlines the desire of the Government — and, I am sure, of the House — to have additional airlines flying in and out of Ireland. They know of the Government's interest in that happening and I do not have any formal proposal from them. I have had a number of reactions, in a general sense, from them but they were very informal and I do not have a formal offer.
(Limerick East): Does that apply to Air Canada as well as to the United States airline companies?
Yes, it does.
I have three specific questions. When does the Minister envisage that the process of meetings and the review will be completed? This year? Shortly? When? Is it the Minister's personal view that, if there was a change, it would generate extra traffic? The Minister is aware of the Aer Rianta proposals to develop the American Express hub service at Shannon. Does he feel it is a valid proposal which will work?
I am meeting those two groups shortly. I want to make one thing clear. I am not conducting a review in regard to which there is a definite date when a report will be issued. There is a policy in place and I am keeping an eye on it.
That is not a review?
Mind that it does not fly away.
I am watching it very closely but I am not prepared to be drawn into a formal review with the aim of issuing a report by a definite date because that would lead to continuous demands from everybody as to when it will be finished. I would be negligent if I did not watch this issue very carefully and if I did not talk to people in airlines and Deputies from all parts of the country. Indeed, that is what I am doing; I am not conducting a formal review which will finish at a particular date. There is no time-scale.
In regard to American Express, I have given Shannon Airport all the support I can to make sure that that project works for them. They will have further support from the Department and myself to make sure that their Atlantic Express concept works for them. It is a very difficult concept and I know that they are having a lot of trouble getting it started but they have our support.
In view of the Minister's reply to my question and his affirmation that the outlook for tourism this year is dire, will he consider using his influence with Bord Fáilte to enlist the aid of such well known world figures as Richard Harris, Terry Wogan, Seán Kelly, Stephen Roche, Mick McCarthy of the Irish soccer team and, indeed, Seamus Heaney, the international poet, to boost tourism in Ireland this year? Drastic ills need drastic remedies and I think the Minister will agree that if commercial companies use those people to boost their products we can also use them. Will the Minister agree that last year, after our good performance in the World Cup, there was a big increase in the number of tourists to this country, especially from the Continent?
Bord Fáilte have used international personalities in the past — and still do — to support the tourism drive. I will pass on those names to them, especially the Limerick name.
Everybody in this House seems to be agreed that there is now a crisis in the trans-Atlantic tourist business. Will the Minister take an imaginative step — a quantum leap — and abolish, once and for all, this compulsory stop which is hindering the development of tourism in Ireland?
It is not a compulsory stop.
It is a compulsory stop.
Can the Minister tell us if he has had discussions with Bord Fáilte on this matter and what their view on it is?
We have discussed it with all of the airlines as well as Bord Fáilte and Aer Rianta. Indeed, everyone involved at one time or another has expressed an opinion on it. Bord Fáilte support Government policy in the matter.
I feel we have dwelt adequately on the question. Nevertheless, I will hear Deputy Noonan and Deputy Byrne for brief and final questions.
(Limerick East): Is the Minister aware of Aer Lingus's bias against all airports outside of Dublin and, despite the complaints made to his Department in connection with the inability of our young emigrants to fly home at Christmas, that the recent fare structure advertised by Aer Lingus will allow young emigrants in London to fly to Dublin next Christmas at a fare of £133, whereas those wishing to fly to Cork or Shannon will have to pay £185? Will the Minister investigate this matter in view of all the complaints made last year?
A lot of extraneous matter is being introduced.
I am not aware of an Aer Lingus bias against airports other than Dublin but if there is any evidence of this I will certainly look into the matter for the Deputy. In relation to the fare structure, a balance has to be struck between the needs of tourist and business interests and the solvency of the airline.
(Limerick East): There will be £55 of a difference.
A final question from Deputy Bryne.
I would like to point out, and I am sure the Minister is aware of this, that there are 74,000 people on the live register for the Dublin region and that it is therefore a disadvantaged region. Can the Minister tell the House if, in his contacts with Aer Lingus, particularly on the Los Angeles route which was due to open on 1 January this year, they told him that because it costs £8,000 to land at Shannon the Los Angeles route is not viable? Given that this would be a new service, would the Minister accede to the request for direct flights between Dublin and Los Angeles so that tourists and customers from North America can be brought to Dublin?
I think the Deputy knows that the opening of the Los Angeles route has been postponed——
Is the stop-over one of the reasons?
The airline planners may have taken some cost into account for that stop-over but when they announced the route they were aware of the stop-over. I can only conclude that when they subsequently cancelled the route they did so for reasons other than that.
Would the Minister assist them in opening the route for the benefit of the nation?
Question No. 18, please.
On a point of order, the Minister did not answer my question. Deputy Carey answered it. Would the Minister please answer it?
Shadow Minister Carey.
I apologise to the Deputy. It was not my intention not to answer it. The Deputy asked me if I was going to make the change right now and the answer is no.
