Dáil Éireann díospóireacht -
Tuesday, 11 Dec 2012

Vol. 785 No. 5

Shannon Airport: Motion

Minister for Transport, Tourism and Sport (Deputy Leo Varadkar)

I move:

That Dáil Éireann approves the following Order in draft:

State Airports Act 2004 (Shannon Appointed Day) Order 2012,

a copy of which Order in draft was laid before Dáil Éireann on 5th December 2012.

When I was appointed to the transport, tourism and sport portfolio in March 2011, I made the aviation sector one of my key priorities. One of the issues that needed to be addressed was the unusual situation that characterised the relationship between the three State airports since the enactment of the State Airports Act in 2004. While the 2004 Act provided for the establishment of two new public limited companies - namely, Shannon Airport Authority and Cork Airport Authority - for the purposes of owning, managing, operating and developing these two airports, in reality these functions were never transferred from the Dublin Airport Authority, DAA. While both companies were established in 2004 and have their own boards, they have very limited autonomy from the DAA, which remains responsible for all significant commercial decisions with regard to both airports.

The onset of the economic crisis in 2008 created severe turbulence in the aviation sector. This is because of the close correlation between trends in the national economy and trends in the aviation sector, which means that the key indicators of both sectors mirror each other with a short time lag. As the economic situation worsened, there emerged a particular concern for the future viability of Shannon Airport, given the quite dramatic fall in its passenger numbers in recent years.

Last week, my colleagues the Minister for Public Expenditure and Reform, Deputy Howlin, and the Minister for Finance, Deputy Noonan, delivered the budget for next year and announced expenditure cuts and revenue-raising measures amounting to €3.5 billion, designed to reduce the general Government deficit to 7.5% next year, down from a projected 8.2% in the current year. The target is to reduce the deficit further, in stages, to 2.9% in 2015. We will continue to face up to the challenges this involves in as sensitive and as fair a way as possible.

Members might ask what is the relevance of this to our State airports, particularly Shannon Airport. While we have mapped a clear road to the recovery of our economic sovereignty and to the economic recovery of this country, the scale of our current difficulties requires that every part of the State's business, whether in the commercial sector or not, contributes to this goal. For example, we are undertaking the most comprehensive reform ever of the public service, with the aim of reducing public expenditure and staff numbers while at the same time endeavouring to maintain key services and social supports. This is far from easy, but we have to do it and we must succeed. We simply have no choice. Our efforts cannot be confined to Exchequer finances.

The commercial State sector must also play its part in full. In the current circumstances, this is an economic and financial imperative. Our three State airports operate in the commercial sphere and can play a vital role in our economic recovery. I say "can" because unless they are actually contributing, they could hold back economic development and hinder recovery. Shannon Airport is currently in this unenviable position. It is loss-making and its passenger traffic has fallen dramatically since 2007. It is being supported by the DAA and is not delivering its potential for the mid-west region. Regardless of where ownership of Shannon Airport lies, this cannot continue. The stark facts are that passenger traffic at Shannon more than halved, from 3.6 million to 1.6 million, in the period 2007 to 2011 and is expected to fall further, to less than 1.5 million, this year. Clearly, this trend could not be allowed to continue without putting the very future of Shannon Airport at risk. There was a need for some intervention to put the airport on a more viable footing. This, in turn, required a thorough examination of all the options.

Having discussed the matter with the three airports, I commissioned Booz & Company, a leading firm of aviation consultants, to identify and analyse all likely options regarding the ownership and operation of Cork and Shannon airports and to make recommendations with regard to the optimal ownership and operational structures for those airports. After consulting widely, Booz found Cork Airport to be performing well under DAA ownership and management and as such, they concluded that the benefits of any fundamental change in its ownership status in terms of increased traffic and revenue for Cork would be marginal. Accordingly, the Government decided that the existing ownership of Cork Airport by the DAA would be maintained for the present. Cork and Dublin airports will need to continue to need to address their costs and look for opportunities to increase the size of their businesses as part of a renamed DAA.

The Government decided that it needed to focus on halting and reversing the serious decline of Shannon Airport. The basic conclusion of the Booz report regarding Shannon Airport was that its decline and financial situation as a loss-making entity would continue unless there was a fundamental change in strategic direction for the airport. Having carefully considered the matter, the Government agreed in principle last May to a new strategy designed to reverse the decline in Shannon Airport and put the airport on a new strategic footing. This new strategy, which takes account of the Booz recommendations, involves the separation of Shannon Airport from the DAA, the merging of a restructured Shannon Development with Shannon Airport to form a new entity with a commercial mandate in public ownership, and the development of a suite of aviation-related industries located in the lands contiguous to the airport. The Government also decided to rationalise the tourism and enterprise support agencies in the region. Shannon Development's tourism functions are being transferred to Fáilte Ireland and its enterprise support functions will be transferred to IDA Ireland and Enterprise Ireland. These initiatives will serve to eliminate the historical duplication of resources and deliver a better service to the region.

The Minister for Jobs, Enterprise and Innovation, Deputy Bruton, and I established a high-level steering group to develop proposals for the implementation of the Government decision and to assess the feasibility of creating an international aviation services centre of excellence at Shannon Airport. The steering group was assisted by two task forces. The aviation business development task force was charged with seeking out and evaluating aviation-linked business opportunities that could be associated with the merged Shannon entity and introducing proposals to address issues relevant to the merger for consideration by the steering group. The change management task force was formed to develop transitional arrangements for Shannon Airport and Shannon Development prior to the merger, including matters relating to information technology, human resources, finance and accommodation. The task force also considered issues related to the transfer of Shannon Development functions to the IDA, Enterprise Ireland and Fáilte Ireland and the development plans of these agencies for the region. Both task forces concluded their work last month and their reports have been published on my Department's website. The report of the aviation business development task force strongly supports the potential for the establishment of a broadly-based aviation industry cluster in and around the airport with the potential to achieve global recognition while also providing a strong employment stimulus in the Shannon region. Areas of the aviation sector that will be targeted for this purpose include aircraft maintenance, repair and overhaul, flight crew and other aviation-related training, and the development of aviation logistics and cargo facilities, among others.

It is a prerequisite for airport separation that the Minister for Public Expenditure and Reform and I are satisfied as to the state of operational and financial readiness, including business planning, of the three State airports. Detailed business plans for the proposed new Shannon entity, which includes Shannon Airport, and for the DAA post-separation from Shannon were prepared, and these were subject to independent expert evaluation by KPMG on behalf of the steering group and my Department. I am seeking the approval of the House for this motion because the Government is confident that Shannon not only is ready to stand on its own but will perform far better on its own, free of constraint and control by the DAA.

In this regard, it has been suggested the passenger projections for Shannon Airport seem fanciful. While the business plan is confidential, in the next five years the Shannon plan projects passenger numbers to grow from approximately 1.5 million this year to 2.3 million in 2017 and 2.5 million in 2021. Shannon traffic peaked at 3.6 million passengers five years ago. I do not deny that it will be a challenge to meet these targets, but they are achievable. Moreover, the alternative of accepting that passenger numbers at Shannon cannot be improved is much worse because that would spell the continued decline of the airport. In that eventuality we would soon be seeking to downgrade or even wind down the structures at Shannon. That is not the future I want for the Shannon area. As I announced last week, the Government has confirmed its decision on Shannon Airport and we are working on implementing it. I am delighted with the news that commitments for the creation of 850 jobs have been secured by the task force from two companies as part of plans for an international aviation services centre to be located at Shannon. The longer term potential of this centre is projected to create and maintain up to 3,500 new direct jobs within five years, not including construction jobs.

While on the most important subject of jobs, I understand the concern that may be felt by the staff in both Shannon Airport and Shannon Development at this time of significant change. I acknowledge that, as with any new initiative, there are challenges ahead for the airport and the new Shannon entity being formed from the merger of the airport and the restructured Shannon Development which we will call NewCo for the time being. However, it also offers a great opportunity for Shannon and the region. The terms and conditions of the DAA employees working in Shannon Airport will not be diminished in any way when they become staff of the Shannon Airport Authority. This was agreed following intense negotiations with ICTU in 2004 while the State Airports Act was being enacted and their protections are enshrined in that legislation. The terms of the Croke Park agreement apply to the staff in Shannon Development and, when the State-owned NewCo is established in due course, they will transfer to that company with their current terms and conditions. The workers in both Shannon Airport and Shannon Development are vital to the success of the airport and the vision for NewCo. Together with management, I am convinced that they can and will work together to ensure not just the survival but also the renewed growth and success of the airport. I am aware that some in the unions are unhappy with how these policy initiatives have been progressed to date and feel excluded from that process, notwithstanding the arrangements for consultation in place. I have invited ICTU to nominate a representative to join a steering group of key Departments which the Minister for Jobs, Enterprise and Innovation and I will establish to oversee implementation of the Government decisions on NewCo. I also want to ensure the workforce in the Shannon Airport Authority can have representation at board level as soon as separation is effected on 31 December. In this regard, I have also invited ICTU to nominate an employee representative for appointment to the board of the SAA on a temporary basis pending agreement on the arrangements for NewCo.

The Government's decision represents an historic new beginning for the Shannon region, with Shannon Airport playing a central role in the drive to develop a world-class aviation industry. In addition, the decision grants Shannon Airport the long awaited freedom to determine its own future in the best interests of the airport and the region. The decision will give the board, management and staff of Shannon Airport the scope to bring a fresh approach to its future development. Its merger with a restructured Shannon Development provides an opportunity to open up access to the extensive land bank at Shannon to facilitate the development of the international aviation centre of excellence.

Some in the Shannon region maintain that Aer Rianta International should be transferred to Shannon Airport from the DAA. From the time separation of the State airports was mooted in 2004, it has been the intention of successive Governments that while the debts associated with the business of Shannon Airport would remain with the DAA,Aer Rianta International would also remain with it. Aer Rianta International is an integral part of the DAA group and the DAA's balance sheet, funding and credit rating are reflective of the group's business, including Aer Rianta International. Being part of a larger group allows Aer Rianta International to access funding necessary for its ongoing expansion by borrowing against the assets in Dublin. I would prefer the Shannon Airport Authority to use borrowing to develop Shannon Airport rather than overseas businesses. Even if it was desirable to transfer Aer Rianta International out of the DAA, it would damage the latter's viability if it was done as part of the Shannon Airport separation process. In short, if the DAA's financial viability was compromised as a result of separating Shannon Airport, separation could not happen. Both Shannon Airport and the DAA post-separation must be viable. That is the law.

I have been particularly struck by the degree of support for an independent Shannon Airport across a wide spectrum of interested parties, including business interests, chambers of commerce, and local authorities. Airport users, service providers, and prospective new airport customers, including airlines and aviation companies, have expressed an overwhelming desire to deal directly with Shannon Airport on an independent basis. The State Airports Act 2004 provides the legal mechanism for the separation of Shannon Airport from the DAA. In particular, section 5 (1)(b) of the Act provides for the making of an order to specify the 'Shannon appointed day', to be the day on which the assets and business of Shannon Airport will be transferred from the DAA to the Shannon Airport Authority.

As Members can see, the draft order for approval by this House is a straightforward one which simply sets 31 December 2012 as the appointed day for separation of Shannon Airport from the DAA. Once this order has been approved by each House of the Oireachtas, it provides the legal basis to progress with the plan that will secure the future of Shannon Airport. My hope is that through co-ordinating with all interests in the mid-west region and working together we can provide exciting and innovative opportunities that will benefit business, tourism and job creation in the region. The task now is to make these plans a reality. I thank Deputies for their attention and look forward to hearing what they have to say in reply.

Deputy Timmy Dooley

I move amendment No. 1:

To insert the following after "5th December, 2012":

"provided that Aer Rianta International is incorporated in the new, independent Shannon Airport Authority on or before 31st December, 2012."

I thank the Minister for outlining the Government decision to separate Shannon Airport from Dublin Airport. I could almost have expected to hear that same speech back in 2004. Much of the positivity emanating from it is the same kind of information provided by the Department and the Minister then, who believed a bright new dawn existed for Shannon Airport in a separated environment. Others in Cabinet at the time had serious concerns about the potential separation and the impact that would have on both Cork and Shannon airports.

At the time, the appointed day was left as a fluid date, to allow for business plans to be developed at Dublin, Cork and Shannon airports and a provision was put in the legislation requiring the development of business plans that were sustainable and viable. Unfortunately, during the very best of a boom, it was not possible to develop viable business plans at Cork and Shannon with an independent framework in place. A huge amount of work was done on this and independent boards were established at Shannon and Cork.

In his contribution, the Minister was almost contradictory and negative about the fact separation had not yet taken place, but yet he acknowledged that in 2007, passenger traffic peaked at Shannon Airport to a level of approximately 3.6 million passengers. At the time, I believed those numbers were unsustainable, because they were based on a deal with a particular airline that was unable to meet the targets they had set for themselves, despite the fact they were given an exceptionally good tariff and rates. Therefore, serious efforts were made then to see Shannon and Cork airports as viable entities in a separated environment. I am very pleased direct separation did not take place then, because if it had, Shannon and Cork airports would be cut adrift now. In the downturn we have experienced, they would not be viable and neither the Government nor the State would be in a position to invest in them. In the context of competition, EU rules on state aid would have precluded that. Had separation taken place, both airports would no longer be viable and the State would be left in a difficult position with regard to how it might reinvest in them.

I accept the separation proposal being put forward by the Government now is somewhat different. However, it seems to make assumptions based on a business plan that I do not believe is sustainable. The Minister has reiterated some of the figures here today. He has shortened his outlook from 2021 - the year he utilised last week - back to 2017 and has stated that by 2017, passenger numbers will be 2.3 million, as set out in the business plan. I ask him to look at the business plan in more detail. I accept the business plan is confidential, but the Minister has shared some of the numbers, so I will do the same.

There is an expectation or a projection that passenger numbers at the airport will have increased on current levels by 500,000, or 33%, by the end of 2014. While I hope that happens, I think it is fanciful to anticipate that it will. It is foolhardy to move on separation without putting in place some kind of secure backstop, in terms of a source of revenue for the airport at a time when this country is going through a very difficult financial crisis. Confidence is at a low ebb and people are not travelling to the extent that they did in the past. It is somewhat foolhardy to expect Shannon Airport to outstrip the general level of demand from a tourism traffic perspective and achieve a 33% increase. I ask the Minister to review the matter.

My amendment seeks to give Shannon Airport the kind of protection in the separated environment that it will need in the context of the losses it has been making. It would provide the airport with a revenue stream that would enable it to grow and develop as a counterpoise to Dublin Airport. That was the original intention of the separation proposal in 2004. The general perception at the time was that Dublin Airport was killing off effective competition from the two other State airports. It was believed that the two airports in question needed to be established on an independent footing so they could compete effectively. If they could draw some of the traffic through the airports in the west and the south, it would assist the approach of successive Governments to balanced regional development and increase economic activity in those areas. This Government, which is separating the airports in a different economic climate, is not providing for any support or fall-back in the event of the targets not being reached. As I have said, the targets are overly ambitious in the short term. The airports will not have an opportunity to receive the support one might have expected.

The Minister has made the case for Dublin Airport owning Aer Rianta International, in effect. As Deputy Carey and others will know, Aer Rianta International was established by the management of Shannon Airport to support activity at the airport. This international business was grown out of Shannon and for Shannon. The Dublin-centric approach of the Dublin Airport Authority over the years has meant that much of the profit associated with Aer Rianta International has been put to the use of Dublin Airport. Aer Rianta International's stake in Birmingham Airport was sold for over €230 million in 2007. Those funds were used as base capital, in effect, to secure additional borrowings for terminal 2. Over the course of a decade, approximately €600 million has been transferred from Aer Rianta International into the coffers of the Dublin Airport Authority.

I do not accept the Minister's suggestion that if this Fine Gael-led Government decided it was desirable to give Aer Rianta International to Shannon Airport, it would have some kind of impact on the capacity of Aer Rianta International to trade successfully internationally. My understanding is that the books of Aer Rianta International show that more than €100 million has been loaned to Dublin Airport. The Minister has said publicly that Aer Rianta International needs to borrow €60 million next year. Perhaps it should start by reclaiming the moneys in question from Dublin Airport. It is an ongoing bone of contention that a company which was established principally to develop Shannon Airport, generate revenues overseas, support balanced regional development, facilitate continued growth and underpin the loss-making infrastructure that was at Shannon Airport is being transferred out of the region without any appropriate support in its place.

When exceptional items are removed, Aer Rianta International made a profit of almost €30 million last year. Some Deputies in the region have made much of the suggestion that Shannon Airport is being separated debt-free. If one goes back through the financial transactions that have taken place between the Dublin Airport Authority, the old Aer Rianta and Aer Rianta International, one will find that Shannon Airport and Aer Rianta International, which I would argue was a constituent part of Shannon Airport, have been of huge benefit to the overall group of companies. That contribution has never been marked against the debts that have been assigned to Shannon Airport. Although there has been an element of commingling of the debt and the revenues that have been generated, there has not been an appropriate write-down of the portion of the debt associated with the investment in Shannon Airport that is linked to the profits of Aer Rianta International.

I would have accepted it if the Minister had come to the House and said this could be reconsidered, or perhaps that we could assess how the profits of Aer Rianta International could be set apart or consider the possibility of setting out Aer Rianta International as an independent company, letting each of the three airports have some stake in, control of or access to the profits that emanate from it. However, he talked about the considerable risks for Shannon and said, effectively, that as the airport is in a bad position at the minute, it cannot get any worse. Of course it can be worse if the targets are not attained.

If the Minister was prepared to take the same gamble on Dublin Airport as he is on Shannon Airport, we would see a very different outcome. In particular, he should be prepared to separate Aer Rianta International and utilise the revenues and profits that emanate from that business to shore up the balance sheet of Shannon. However, that is not happening, unfortunately. I am particularly disappointed that the Labour Party and Fine Gael interest in the region is not forcing the Minister to protect Shannon Airport in this instance. We hear a lot of talk in this House and outside about people's interest in the region. The Minister of State should not seem surprised. I have heard him say that he loves Shannon Airport, that he has used it and that it means a lot to him. If it does, he should stamp his foot around the table with his senior Minister.

Deputy Alan Kelly

I do.

Deputy Timmy Dooley

It is not working, no more than it worked last week in regard to the cuts the Labour Party allowed to be thrown on the most vulnerable people in Irish society. If the Minister of State was serious about protecting the infrastructure and the airport in the region and allowing for balanced regional development, at a minimum he would have sought that a percentage of the profits of Aer Rianta International would be ring-fenced, either by way of a shareholding or through a separation of Aer Rianta International, in order to support Shannon and Cork into the future.

The Minister of State is well aware that past projections indicated the airport would be viable, and this was based on the notion that somehow Ryanair's support for the airport would benefit the wider audience. While we heard figures at the time that suggested the wider region would see increased job creation and so on, it did not happen. During the better years, the principal activity at the airport consisted of people travelling outbound and, while this created additional revenues for the car park, it did not support enhanced tourism or enhanced activity and did not translate to the wider region.

The Minister referred to the necessity for the airports to contribute to the improvement in the economy and said that for this reason they must be a commercial success in their own right. He and I have had that discussion across the House in the past. If that is case, and if he is serious about the commercial reality of the three State airports, why not separate out Aer Rianta International in its entirety? Why not decide that this is a separate revenue source for the State? Why not sell Aer Rianta International and assist with the broader development of infrastructure? He has not done this. Instead, he has left it with Dublin Airport. I do not want to talk about a bias with regard to the east and the west coast, but this is an asset that was developed in Shannon with the aim of making Shannon Airport a commercial success right from the start. If one talks to people such as Liam Skelly who were instrumental in the development of that company, one will know they never saw it as a contribution to broader airport activity in this country. They acknowledged the changes that were coming in aviation and recognised that Shannon Airport would no longer be a transit point for refuelling. They saw there was a requirement to offer the kind of rates that would be attractive to bring airlines in and a necessity for an external revenue source. Therefore, they went ahead and developed a fantastic company that trades internationally. However, while that company has a significant value, it is now being transferred away and Shannon is losing out on the double. I am particularly disappointed that the Minister is trying to introduce a requirement for commercial viability when he is effectively strapping one arm of Shannon Airport behind its back. While that arm is strapped behind its back, he is removing the other limb, which was Aer Rianta International.

This is why I have proposed an amendment to the motion.

It will place an encumbrance on the Government to transfer Aer Rianta International to the new company at Shannon Airport as part of the divesting process. Having set out the economic reasons this should be done, I appeal to the House to support the amendment.

Deputy Dessie Ellis

My colleagues and I support the amendment to the motion. When the Government announced that Shannon Airport was to be separated from the Dublin Airport Authority, I gave the proposal a cautious welcome, bearing in mind the desire of local campaigners to have a prosperous and sustainable airport at Shannon. Those campaigners want Shannon Airport to remain publicly owned but are of the view that it being under the umbrella of the DAA has been a negative development, certainly in recent times. Their concern is that Shannon Airport has been relegated to being an auxiliary of Dublin Airport, which has made planning for a better, more efficient and profitable facility more difficult than it might have been if the airport had been afforded a greater level of independence. These are acceptable and understandable positions, but any plan to assign Shannon Airport greater independence must be based on the economic realities of the day rather than simply cutting the airport adrift to fend entirely for itself. Shannon Airport needs more independence, but it also needs a secure revenue stream in order to put its new model into practice and make a real drive towards achieving a more sustainable set-up.

The current plan, unfortunately, does not meet any of these requirements. It is based on a very rosy appraisal of the current economic climate and Shannon Airport's potential for growth in both the short and medium term. The reality is that passenger numbers have fallen by an average of 14% every year since 2007, including a reduction of 37.2% in 2010 and 7.4% in 2011. Clearly, something must be done to assist the airport in increasing passenger numbers and available routes and promoting itself as a real option for those travelling from the south and mid-west. Improved road infrastructure has facilitated travel from Dublin Airport, leaving Shannon Airport with an uphill struggle to claim its share of available business. I am not arguing that any publicly run airport should be competing against another publicly run airport, but Shannon Airport must be supported to claim its share of the market. Such support should be twofold, namely, ensuring a revenue stream and, second, affording the airport the independence to use that security to push forward and grow.

The major problem with the Government's plan is that the stripping of Aer Rianta International from the airport could potentially leave Shannon Airport in serious trouble. Aer Rianta International was started at Shannon, has always been based there and is making a profit in excess of €30 million a year. It is an essential component of any strategy to make Shannon Airport sustainable and turn the tide back in its favour. Its removal in favour of a very optimistic plan which hinges on the achievement of large growth in a short period is not good enough and is effectively setting Shannon Airport up for a fall. I have read the claims that the airport could be operating to a much higher potential in regard to its non-aeronautical business interests, with the fact that Shannon free zone outlets are operating at only 44% occupancy cited as potential for growth. There certainly is potential in this regard, but we must acknowledge that the low occupancy rate is a reflection of the incredible difficulty for small businesses in seeking to survive in a state in which their customer base is being hit again and again with cuts to their living standards. Hard graft and plans are not sufficient to make economic realities disappear.

The Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, has indicated that there is no way debts can be cancelled and Shannon Airport allowed to hold on to Aer Rianta International. That is nonsense. Shannon Airport would never have been able to pay these debts in any case and cancellation was merely a recognition of that reality. Removing Aer Rianta International as a trade-off will seriously damage Shannon Airport's chances of survival and serves no useful purpose. There is no real justification for its removal and the Minister has offered none.

I do not wish to make little of the efforts of those involved in planning for the future of Shannon Airport. The plan for Shannon is laudable in its ambition and I very much hope it is successful. However, I fear it would be jeopardised by the removal of Aer Rianta International and the funds this brings to Shannon. Any future for Shannon must ensure good conditions for the workers who have kept the airport on its feet and will continue to do so. The new airport authority must work with unions and employees to ensure they are not mistreated in the changeover. Unions need to have more of a say but to date they have not received receive proper consultation in the process.

I am thankful that plans to privatise Shannon Airport have not been put forward. Some have argued for competition between our airports but these people do not argue in the interest of the people of Ireland, rather in the interests of their own profit margins. However, judging by previous comments made by the Minister, Deputy Varadkar, I know he leans towards privatisation, as does this Government. It is hard to believe the Labour Party is going along with the privatisation agenda.

Deputy Alan Kelly

Why does the Deputy say that?

Deputy Dessie Ellis

This can be seen in the removal of Aer Rianta International, which I see as the setting up of Shannon for a fall that will lead ultimately to it coming into private hands. Shannon is not just an airport, but a town and a community which have thrived because of the airport's links to the rest of the world. We should be mindful of this and of the need to support this community as it begins its uphill struggle to win prosperity. I support the amendment to the motion.

An Ceann Comhairle

We will allow Deputy Wallace to share time, as requested.

Deputy Mick Wallace

I refer to the separation of Shannon Airport and the DAA. The Government claims that doing nothing is worse than doing something but that is not always the case. I hope the ambition to create 3,500 jobs as a result of this move will be achieved in the long term - it would be brilliant if this happens. I certainly hope it will and I wish the project well. However, it is pushing it somewhat to believe this plan will work. The projected passenger figures, moving from 1.5 million to 2.5 million in the coming years, are very optimistic. I agree with the two previous Deputies about Aer Rianta International. It will be difficult for life to work at Shannon without the benefit of Aer Rianta International, which is sure to make a few bob.

I am afraid this could be the beginning of the end for Shannon as a serious airport although I hate to think that. Perhaps in some years time Shannon may become just a regional airport. I wonder if it is being cut loose. Some companies are to come in within the new amalgamated group, but perhaps we are watching the facilitation of the arrival of the last few vultures to pick on the carcass that is Shannon. It was interesting to note that the Kerry Group, which, to its great credit, set up a new research and development centre in Ireland rather than go offshore like so many others, has set up in County Kildare. According to the group, it needed the connectivity of Dublin, in particular Dublin Airport. What does that company think of the future of Shannon Airport? How optimistic is it that Shannon is a viable long-term project, given that it did not decide to set up in Kerry, or at least in the Munster region to which it has shown loyalty over the years?

The Minister, Deputy Varadkar, stated that part of the new Shannon strategy will include attracting further military stopovers. He noted that the number of US troops using the airport has dramatically declined as the American presence in Iraq and Afghanistan has decreased.

Obviously, any new business is welcome, but such business must be conducted within certain rules. It is unfortunate that the spectre of it being used to facilitate rendition flights still hangs over Shannon Airport. It would be great if the Government had the courage to deal with this matter. The previous Administration lacked such courage and one of its Ministers admitted that some aeroplanes which landed at Shannon Airport might have been used to pick up people who were then brought to different destinations where, in many instances, they were tortured or imprisoned illegally without trial. In the context of Shannon Airport, the programme for Government states, "We will enforce the prohibition on the use of Irish air space, airports and related facilities for purposes not in line with the dictates of international law". I am sure the Government is well aware that the United Nations has some serious concerns about-----

An Ceann Comhairle

I am afraid the Deputy is straying outside the parameters of the motion before the House which relates to the separation of Shannon Airport from the DAA.

Deputy Mick Wallace

If Shannon Airport is to be separated from the DAA and it is to have a long-term future, I would like to see it survive and operate within the rules set down under international law. I am merely making the point that the United Nations has some serious reservations about this matter and has stated it is concerned about allegations that Irish airports have been used as transit points for so-called rendition flights of persons to countries where they risk being subjected to torture or ill-treatment. It has also indicated that the state party should "establish a regime for the control of suspicious flights and ensure all allegations of so-called renditions are publicly investigated". Laws may be in place, but they are not always implemented. An inspection regime must be put in place in order that we might rest assured that what the Americans are doing and informing us that they are doing falls within the rule of law. The testimony provided by Bradley Manning last week was frightening.

An Ceann Comhairle

I ask the Deputy for his co-operation. He can table a separate motion on that matter.

Deputy Mick Wallace

I will do so. Mr. Manning's treatment emphasises the fact that we should not take the Americans at their word at all times.

Deputy Luke 'Ming' Flanagan

What is happening might have the potential to be good news for Shannon Airport, but I am obliged to wonder why it is being done at the expense of Knock Airport. The Minister appeared to be explicit in this regard. Knock Airport is situated in County Mayo, some 20 miles from where I live, and one of the few success stories in the area. It is a beacon of hope for those who of us who live in the area because we would like a tourism industry to be developed. Obviously, a thriving airport would be of major assistance in that regard. Knock Airport is located within a very short driving distance of many golf courses and fully stocked fish sanctuaries which are empty for most of the year. It is in the perfect place in developing the west.

I was very concerned when I heard the Minister state the Government was going to develop Shannon Airport and that this would be done by damaging Knock Airport. The chairman of Knock Airport, Liam Scollan, issued an excellent statement on this matter in which he stated:

The decision to intervene so generously in one airport while ignoring other airports amounted to an unfair, wasteful and possibly illegal use of scarce resources, which would not serve the interests of national aviation. They could trigger the terminal decline of an efficient, growing airport like Knock, which has begun to compete successfully with the State owned Shannon at a fraction of the cost. It was also a financially disastrous policy for hard pressed taxpayers.

As I said in my budget speech, Governments are normally either pro-people or pro-business. This Government is not pro-anything; its motto is "Let's find a handy solution and throw it out there without considering whether it will work." The statement continues:

This decision is connected to Knock’s emergence as a credible international airport. Today it has circa 700,000 passengers and 28 overseas destinations and with Europe’s largest airlines Ryanair and Lufthansa together with Aer Lingus and Flybe. The Airport currently has 45% of the UK Seat Capacity market in the West of Ireland including Shannon.

One would imagine that such a business would be encouraged rather than faced with the possibility of a kicking. It continues: "The decision avoids any attempt to benchmark and look for value for money." I thought this was a Government policy.  "Knock’s commercial growth meant that in 2012, it managed to fund 92% of its total operating costs with just 8% coming from Government."  The airport does not need rendition flights to make it viable. The statement continues:

By contrast, Shannon Airport has losses now reaching €8m per year, even after additional subsidies. The funding of losses at Shannon Airport costs €6.10 per passenger while the comparative figure for Ireland West Airport Knock is just €0.87.  

I am not saying Shannon is not worth it, but the corresponding figure for Knock airport is just 87 cent. The statement continues:

A series of Government statements has indicated that its aviation strategy was focussing on and supporting just one airport. In one such statement it was highlighted that a change in Government policy would be required to stop Knock catching up with Shannon.

Knock Airport is surviving pretty much on its own yet the Government is trying to stop it. The statement continues:

On 31st March 2012, quoted in the national media, Minister for Transport Leo Varadkar TD said: 'If nothing was done for Shannon the airport stood in danger of being passed out by Knock airport in passenger numbers, despite a current gap of over 900,000 passengers. ... I think if the trends continue as they are it will happen because Shannon’s numbers are already down 20 per cent this year and Knock is still growing. It is only a matter of time without a change in policy.'

The Government decided it had better change its policy or Knock would keep growing. God forbid Knock would keep growing. Then again, the Government does not want any growth in these areas. Its policies have destroyed these areas, as stated officially by the Minister for Transport, Tourism and Sport. The statement continues:

This parochial decision by Government to blindly pump cash into one State airport, in the absence of any attention to its impacts on a competing airport like Knock, ignores warnings from the Government’s own aviation advisers at Booz and Co. In their report to Government earlier this year they stated that the Government should not proceed with a support package for Shannon before developing a coherent policy towards airports for the country as a whole.

That seems like a sensible policy but, then again, we have given up on the Government in this regard. The statement continues: "Such an approach would have meant looking at the efficiencies of an airport such as Knock and allocating investment where it could get the best return for the tax payer." This sounds like another good idea. It continues:

However, by announcing its package for Shannon ... the Government has made a clear nonsense of its second announcement ... to commence the preparation of a national aviation strategy.

Over the past 18 months, [Knock airport] presented Government with a series of innovative proposals which would lead to 1000’s more tourists and 100’s of jobs in both tourism and aviation related industries.

We have a business that is doing well. Why would the Government want to stop it doing well? It is an amazing admission on the part of the Government. It is an even more amazing admission given that four out of five Mayo Deputies are members of Fine Gael.

At the next general election they will not be able to ask voters to vote for them on the grounds that a Government Deputy will be able to do something for them. They will be able to do something all right, namely, manage the lowering of the number of passengers to Knock Airport in order to facilitate Shannon Airport. I have no problem with Shannon Airport and hope it thrives, but it needs to work in tandem with Knock Airport and the whole region, rather than having a desperate stand-alone policy to try to save a few votes for a few Government Deputies in the area.

I understand the Knock Airport group which includes Mr. Liam Scollan appeared before the Joint Committee on Transport and Communications last week. It stated it had serious concerns about the quality and level of engagement with the Government. Mr. Scollan stated:

We have met Minister Varadkar and his officials on numerous occasions, but our representations have not been afforded fair consideration. In fact, the Minister is clearly on the record in both national and local media that Knock Airport was the problem for Shannon and that he intended to develop policies to rectify that.

What does that mean? The meaning is obvious - the Government is going to attempt to destroy one of the most successful entities in Connacht. Mr. Scollan has stated: "Hopefully he [the Minister] may soon commence to see that his and the Government’s policies are a cause of great concern for the airport and the community of 800,000 it serves."

The Government has failed at trying to keep people in the country. Knock Airport is not just for tourists as it provides the only opportunity men and women who must go to work in London during the week have to see their families at the weekend, yet the Government wants to damage and banjax it. Well done.

Deputy Joe Carey

I wish to share time with Deputy Patrick O'Donovan.

Let us remember the great innovators and business pioneers associated with Shannon Airport. What would they have made of the Government's vision for the airport and region, as announced last week and outlined in the motion? They would have applauded the new structures and been enthused by the business plan. Shannon Airport has always embraced and been empowered by a pioneering spirit. It has always adapted to and driven change in the aviation industry and can do so again under the proposed plans. In the past decade the airport was allowed to wither slowly, accelerated by political ambivalence and legislative failure. It was a State airport in name only. After the Open Skies policy, in particular, it was left to its own devices, without assistance or direction from Dublin. Coupled with this, its hands were tied by the bureaucratic and centralised Dublin Airport Authority, DAA, an agency more interested in minding Dublin Airport than facilitating Shannon Airport.

My Government colleagues and I in County Clare were elected with a clear mandate to take action in regard to Shannon Airport. Extensive consultations and expert advice, including a detailed submission made by many to Booz & Company last November, highlighted a clear desire that we take back ownership to have some influence over the airport. I am pleased to say I submitted an in-depth report that is strongly endorsed in the proposals adopted by the Government. We now have an independent Shannon Airport, free from the shackles of the DAA, but it is still State-owned. Crucially, we have dealt with the debt issue and ensured Shannon Airport will begin the next phase of its commercial life without the burden of historical debt. The achievement of debt-free status should not be underestimated. Fianna Fáil, when in government, failed to take this decision during the so-called good times. The Government will ensure the €100 million debt is no longer a drag on Shannon Airport. I very much welcome this and I am particularly pleased the ensuing interest on the debt is no longer a charge with which the new Shannon Airport will have to be concerned.

It is disappointing that some local public representatives have failed to acknowledge this great advancement. The new board at Shannon Airport has a once in a lifetime chance to make this new initiative succeed and it will drive the establishment of an international aviation services centre. Already we have a commitment to the creation of 850 jobs from private companies which see merit in the proposals made. Should the airport develop as envisaged, the job numbers are likely to multiply.

As often happens with significant change such as this, there is an element of uncertainty and fear. I know workers have concerns. I have met some of them and listened to them express their concerns directly. However, doing nothing in regard to Shannon Airport was the most certain way of threatening the livelihoods of the workforce. Workers are protected by the terms of their employment and I believe that in time the developments taking place will enhance their security. Let there be no doubt that the future prospects of the airport are very much dependent on having a satisfied and appreciated workforce. It is important, therefore, that clear and constructive lines of communication are established and maintained in the new structures. We need the workforce's expertise, endeavour and proven ability to adapt to changing work environments.

Disappointment has been expressed that Aer Rianta International will not form part of the new Shannon Airport. In part, this is a legacy issue, as the option of setting up Aer Rianta International as a subsidiary of Shannon Airport was blocked by the Dublin Airport Authority years ago. Therefore, the only commercial option at this point is to leave Aer Rianta International as part of the Dublin Airport Authority if Shannon Airport is to begin life debt free. In time a prosperous Shannon Airport will see this decision as a necessary one and initiatives similar to Aer Rianta International can be established under the new structures.

In recent days some elected representatives have tried to maximise this issue for political gain. These are the very ones who stood idly by as Shannon Airport fell further and further down the pecking order of the political agenda. I am not interested in political games. I want all key stakeholders in the region to get behind this plan for Shannon Airport and the mid-west. As the Minister has outlined, without serious action, there would be a question mark over the viability of Shannon Airport in remaining as a 24-hour a day international transport hub. The time for empty rhetoric and unrealistic demands is over.

Deputy Timmy Dooley

It is a sell-out.

Deputy Joe Carey

Shannon Airport needs action and a concerted effort if it is to truly prosper. I genuinely look forward with optimism to it recovering the pioneering spirit which has stood to it so well over the decades. I wholeheartedly support the motion.

Deputy Patrick O'Donovan

It is important to state I represent a constitutency, with Deputy Niall Collins, in which the Shannon story started in a much different format with sea planes and flying boats. Since then under many Governments the airport has received the political support of political parties of all colours. The vision of the early pioneers who built Shannon Airport at Rineanna and the political support it received from some quarters at the time should be acknowledged. Some spoke about rabbits running around the runways. The Minister for Transport, Tourism and Sport has taken this initiative to make sure that prophesy does not come to pass - that rabbits will not be running around the runways. In recent years the people of the mid-west have seen the sad decline of the airport. Every time one goes there - it is one of the finest facilities in the country - one notes fewer cars parking places are occupied. Therefore, something had to be done. The establishment of an independent airport that can compete on a level playing field with other airports in the west is something these other airports in the west should welcome and embrace. They should examine how Shannon Airport and they can work together. It is a long drive from Castletownbere to Malin Head and it should be noted that there are four functioning airports in the west. There is an opportunity for them to come together to develop a strategy that would support and meet the needs of all the people in the region.

The proposal brought forward by the Government, as the Minister said, relates not only to Shannon Airport but also to Shannon Development.

I have said previously in the context of the new Limerick local authorities being established that there needs to be an examination of the lands owned by Shannon Development in advance of this new company taking ownership. In County Limerick alone, Shannon Development has 250 acres in Plassey, 300 acres in Raheen, 220 acres in Askeaton and 15 acres each in Kilmallock and Newcastle West.

Deputy Timmy Dooley

There will be no planes landing on those sites.

Deputy Dessie Ellis

They will all be privatised.

Deputy Patrick O'Donovan

There might be no planes landing anywhere unless something is done.

There is no doubt there is a perception in County Limerick that we have been at a disadvantage by virtue of the fact we are outside the IDA Ireland loop in attracting foreign direct investment and with these lands being held in another State company's ownership. To improve the attractiveness, not only of the Shannon Free Zone but for the counties covered by Shannon Development, the Government needs to review these land banks which stretch from south Offaly to north Kerry and decide what will be best for the individual communities to use these lands to attract foreign direct investment or local small and medium-sized enterprises.

Regarding Shannon Airport's strategic location, there are opportunities for expansion. For a long number of years, the airport has had a strong attachment to transatlantic routes. In the recent past, there has been further development of these. All Deputies will appreciate that for tourism in the west, be it for Donegal or for Kerry, it is absolutely essential that transatlantic visitors land at Shannon as a first resort rather than bringing them into the eastern seaboard which has reached saturation point with overseas visitors. Any Deputy representing Connacht, the mid-west and even Kerry will agree that it would be far better to get overseas visitors into Shannon Airport rather than into Dublin Airport. The marketing of the airport, and how aggressive that will be, by Fáilte Ireland and the structuring of landing and overall charges by the airport will be critical in making it a choice destination. The engagement of the new airport authority with the National Roads Authority, Clare County Council and Galway County Council is critical in ensuring the motorway between Limerick and Galway is finished. Shannon Airport, in the centre of this network, would then be allowed to spread its tentacles even further.

I worked in the Shannon Free Zone for several years in an industry very closely related to the airport. I could see the impact transatlantic, domestic, British and European routes had on the local economy, as well as the entire mid-west region which extends down into north Cork and north Kerry. It is essential we get this authority right for the business community, hoteliers, their employees and those who elected us.

All parties will acknowledge that the region has been disproportionately affected over the past several years in the structures of its local governance, local authorities and a whole clatter of other structures. It is not a political statement but reality. We need to turn over a new leaf. With the establishment of the joint Limerick local authorities and the separation of Shannon Airport, there is now an opportunity to do more to address this. There is even a possibility that the airport will develop a much stronger link with the new Limerick local authorities so that when people fly into Shannon, they will know the nearest city is Limerick. We can see it tangibly every weekend with Munster rugby and so forth how important the airport is.

I support this motion. I am a Deputy from the mid-west region and it is critical Shannon Airport is given the independence it so badly craves.

An Ceann Comhairle

I call on Deputy Niall Collins who is sharing time with Deputy Calleary.

Deputy Niall Collins

I am grateful to have the opportunity to contribute to this debate which is of immense importance to the future development of Shannon and the mid-west region, including my constituency, Limerick. The importance of Shannon Airport as an economic driver for the region is well and truly documented. One only has to look back over the history of the growth and development of Shannon Airport to see how it has been an employer, as well as leading to spin-off associated industries.

It is fair to say that the policy of successive Governments incentivised the establishment and creation of economic activity in the area. I will be up-front about this. I have said publicly that I welcome the decision but I have reservations about it, which I will articulate. Any decision that gives Shannon Airport a competitive edge should be welcomed, but I have reservations about the detail.

The position articulated by our spokesperson, Deputy Timmy Dooley, is perfectly reasonable. He put forward a proposition for Aer Rianta International which has been well aired and it has been well received within the region. He has been painted as a lone dissenter from the decision. However, he is on record, as am I, as saying that we welcome anything that will help the region in a positive fashion. We are taking a constructive approach to it but we will not go along with a herd mentality. Unfortunately, in the past ten days or two weeks we have seen a great deal of herd mentality. I have listened to many of the local contributors to the debates. They have said that this is great and that it is what they have been seeking for years. That is fine as a headline item, but what if one drills down to the next level? I was particularly taken by some of the editorials in the local newspapers over the weekend. The regional newspapers have a keen interest in Shannon. They took the same sceptical view of the proposal as we took. They have been critical of previous Governments and of some of the aspects of the stewardship of Shannon Airport, but they have also cast a critical eye over the viability of the business plan, and that is a fair point to make.

The growth of Aer Rianta International, where the idea was conceived and where the company was registered are well documented. It is a fair proposition to seek for some of the cashflow and profits to be ring-fenced as an insurance policy and a backstop for the future of Shannon Airport. The Minister has stated that the business plan is confidential, but I believe the public is entitled to expect some reasonable critiques of the assumptions. We have not been given too many of the assumptions in the business plan. Suffice it to say that passenger numbers are expected to grow by somewhere between 33% and 50% in an unrealistic timescale. The business community is asking for some of the detail of the business plan to be put into the public domain to allow a proper debate on its viability. The ring-fencing of some of the cashflow and profitability that flows from Aer Rianta International is a reasonable proposition to act as an insurance policy should the assumptions contained within the business plan not hold. This insurance policy will ring-fence the airport's viability in future. Unfortunately, given the current climate, we must consider the worst-case scenario. All we hear about in terms of the business plan is the target figures that must be hit. What if the targets for passenger numbers are not hit? What if there is a shortfall of 25% or 50% in the projected growth of passenger numbers in the region? These are all legitimate questions.

We have not heard from the Minister although I listened to him over the audio on my way to the Chamber. Who will be the head of corporate affairs in the airport? We have not heard from the Minister about his plans to recruit a chief executive of international repute. If we are to retain Shannon Airport as a leading international airport serving the region then we will need to recruit a leading chief executive for the region. We have heard about steering groups and interim boards, but it is important that the message is sent out from the Minister that he will put all his energy into recruiting an individual of significant reputation and standing to drive the airport forward in future as needed.

There have been several job announcements on foot of memorandums of understanding, but the public is entitled to hear a little more detail. As a former MEP who served the Limerick area, the Minister of State, Deputy Kelly, will know that we are on the back foot with regard to job creation under this Government.

An example is PayPal's decision to locate in County Louth. The Minister of State, Deputy Kelly, was involved in the campaign in respect of Dell, the facility of which is now idle. We all know that PayPal considered two facilities for location of its operation, the Dell facility and another in County Louth, and opted to locate in County Louth. While there have been many promises of jobs there have been no substantive announcements of same. The announcement of jobs at Shannon Airport are jobs on the never never. The public is entitled to know, when an announcement of jobs is being made, if in reality jobs are in the pipeline for the region and through whom they will be provided.

While I welcome this proposal in principle I have reservations about it. It is hoped that what is proposed will work. However, we are living in the real world and Shannon Airport is losing €8 million per annum. The realistic assumptions that must be arrived at to substantiate those losses are not contained in what we are hearing.

Deputy Dara Calleary

I thank Deputy Collins for sharing time with me. I have serious concerns about this proposal on the basis of its affect on the future of Ireland West Airport at Knock. It appears once again that the Department of Transport, Tourism and Sport is determined to proceed with protecting the monopoly that is the current State airports at the cost of airports which are community-owned and have been in the past 30 years, in particular in the case of Knock Airport, driven by community-owned partnership. I acknowledge that substantial Exchequer support has been provided to Knock Airport. However, when this is compared with the type of support given to Dublin, Cork and Shannon Airports, it is minimal.

Some 700,000 passengers travelled through Ireland West Airport Knock this year. The 110 people employed there support 900 jobs in the region. This is the type of progress being made at an airport which 30 years ago was considered a waste of time, ironically by the same parties now in Government. The reason Knock Airport has done so well is that it has been responsive to passenger need and demand, to the just-in-time turnaround for the low cost airlines and to the opening up of new markets across the Continent. It has tried, without much support, to break into new markets in the transatlantic sector. Its success was evident in its first year of operation in terms of passenger numbers. While service issues have arisen these will be followed up if the airport is lucky enough to secure another transatlantic operator.

The business plan for Shannon Airport has not yet been published. However, we are told that one of the targets in that plan, in terms of growing passenger numbers, is for it to recover lost passengers from Kerry and Knock Airports. Does the Government really expect me to support this? I am astonished that a Cabinet would support a business plan that involves the cannibalisation of other airports and threatens jobs in other airports to support the State monopoly. Anything that creates jobs is welcome. However, we are being sold this notion on the basis that there are job announcements in the pipeline, in particular hundreds of jobs around aircraft maintenance and so on. Ireland West Airport Knock identified the potential in this regard some years ago. It also proposed the use of Knock Airport as a hub for development aid. While the innovation came from Knock Airport the ball is now being carried by those who lacked that innovation but who have State support.

The people of Mayo are not against the development of Shannon Airport. What they want is recognition of Knock Airport as an international airport and an intrinsic part of our aviation policy. It is an airport deserving of that. In moving this motion now ahead of a national aviation policy, we are putting the cart before the horse. We are dismissing the role of other airports in the country to has-beens even though passenger demand indicates they are very much part of the future of Irish air travel. I am astounded that a Cabinet which comprises a Taoiseach from my constituency would endorse this proposal and would not engage in any meaningful way with the management and board of Ireland West Airport Knock. I gather there is to be a meeting next week. However, the horse will have bolted by then.

The Minister, Deputy Varadkar, stated earlier this year that unless Government policy changed Knock Airport would outgrow Shannon Airport. Government policy has changed. Shannon Airport has the golden ticket, debt write-off and substantial funding to enable it cannibalise the other airports in the region. That is not right. Rather than support job growth, this will discourage it. This will not encourage any new airlines into the airport, rather it will encourage the displacement of airlines from existing airports. It will not open up any routes, rather it will encourage the displacement of existing routes. The Minister of State can shake his head all he wants. He is a good man for making promises on the ground.

Deputy Collins referred to the empty Dell facility.

Deputy Alan Kelly

That happened under Fianna Fáil's watch.

Deputy Dara Calleary

The Government has not done a great deal with it since taking office.

Deputy Alan Kelly

Who is responsible for it being empty?

Deputy Dara Calleary

The reality is-----

Deputy Timmy Dooley

There were a lot of promises made about filling it.

Acting Chairman (Deputy Paudie Coffey)

The Deputy is interrupting his colleague.

Deputy Dara Calleary

-----that this Government is proceeding with a plan with no specifics, no targets and nothing against which progress can be measured. It is all confidential yet we are being asked to vote for it today. That is not a good way to proceed.

Deputy Kieran O'Donnell

I am delighted to take part in this historic debate. I have listened to the debate thus far. I think everyone is agreed that Shannon Airport could not continue as is for a number of reasons. It is impossible for anyone to compete with their employer. Shannon Airport was competing with the Dublin Airport Authority. The priority of the Dublin Airport Authority for some time has been terminal 2. It was important Shannon Airport was given independence in respect of its operations. While we may differ on many issues, I think we are all agreed on that core principle.

Shannon Airport has been in limbo for many years. This is no longer the case. The key focus now must be delivery of the infrastructure required to make this a resounding success. Deputy Calleary referred to a lack of targets. There are targets in terms of the creation of 3,000 to 3,500 jobs in the aviation sector and in respect of growth in passenger numbers by 1 million.

Deputy Dara Calleary

At whose expense?

Deputy Kieran O'Donnell

The target is to bring in 1 million passengers using international airlines, including Transair, which has been mentioned in the media, and to be able to fly passengers from Shannon Airport to America, which will be new business for Ireland. That is a rising tide which will lift all boats. The Minister of State, Deputy Kelly, Deputy Dooley and I are Deputies from the western seaboard, which has always been exposed in terms of balanced regional development. There must be a counter pole to Dublin along the western seaboard. For this to happen, an international airport is required. We have such an airport in Shannon.

Deputy Dara Calleary

We have two of them.

Deputy Kieran O'Donnell

Shannon Airport has the longest runway in Europe, a history in terms of transatlantic flights, preclearance for passengers and many other advantages, which we must exploit. I do not believe these could be exploited under the current model of the Dublin Airport Authority. If the attention of the DAA is on filling terminal 2, Shannon Airport will not receive the attention it requires.

Plans are always extremely important. How they are implemented is vital in terms of achieving success. From 31 December 2012 Shannon Airport will be independent of the Dublin Airport Authority. A Shannon Airport board will shortly be appointed, the first task of which will be to recruit a CEO. It is vital that CEO is highly qualified and has experience of managing a large operation.

We then move to implementing the change vis-à-vis Shannon Development and its integration with NewCo. Shannon Development did fantastic work in the region for many years. It delivered many jobs and was the forerunner in establishing the Shannon free zone. We must, however, move to a new phase and Shannon Development will bring its expertise in various areas, particularly in aviation, to NewCo. We need an integrated plan because Shannon Airport is vital to economic development in the region. Passenger numbers are critical and we must remain focused on the fact that we are seeking to reach passenger numbers of 2.5 million. This plan is realistic and what is required is strong management and adequate resources to ensure Shannon Airport will continue to contribute to the region. It is vital for communities all along the western seaboard that the opportunities provided by the airport are exploited fully.

The report makes reference to a 24 hour, 365 day a year service at the airport which will give Shannon a comparative advantage in international aviation and allow it to further develop the transatlantic market. That is why I am excited about the prospect of allowing airlines to touch down at Shannon Airport and from there fly passengers to transatlantic destinations, rather than their country of origin. The ability to offer pre-clearance to passengers provides enormous opportunities and Shannon Airport can be extremely competitive in this regard. Side by side with this is the matter of aviation services. The idea of an aviation services centre of excellence at Shannon is not new. Shannon Airport has been a pioneer in this area, with Guinness Peat Aviation, Shannon Aerospace and others located there in the past. The aim is to build on the existing level of expertise. There are 1,600 people already working in that sector at Shannon, with 230 working in the airport.

As a Deputy from Limerick city, for me Shannon Airport has always been synonymous with the region and Limerick, in particular. Historically, areas such as Caherdavin on the north side of the city have had large numbers of locals employed at the airport and expanded on that basis. The airport must regain its premier place as an international airport and a provider of employment in the region. In that context, aviation services, in particular, are being targeted. I welcome the commitment made in the budget that tax incentives will be provided for the aviation services sector and hangar providers and I look forward to seeing the details.

We have the expertise, infrastructure and workforce talent to have an independent Shannon Airport and show what the mid-west and western regions can do on their own. Deputies have referred to the fact that people have concerns about the plan. I can understand this from the perspective of the workers. However, when one examines the plan in detail and analyses the structures being put in place, one will see that a stronger, more vibrant future is possible for Shannon Airport as an independent entity rather than as an airport tied to the hind tail of the DAA. The lack of independence meant that the airport did not know where it stood and was continually looking over its shoulder in fear that flights would be diverted to Dublin. Often flights were pulled simply to fill a hangar and occupy Terminal 2 at Dublin Airport.

The year of The Gathering is 2013; Limerick city will be the National City of Culture in 2014 and a feasibility study is being conducted of a proposal for a national Diaspora centre in Limerick. However, critical to any plan to have a national Diaspora centre in Limerick is an international airport on the city's doorstep that will be a gateway to the city and the wider region. An independent Shannon Airport can provide the flexibility, direction and energy to ensure we will meet the targets for jobs and passenger numbers. The measures proposed by the Minister are welcome and I hope the Opposition will agree, whatever about the details of the plan, that Shannon Airport needs to be independent of the DAA in order to take its rightful place in the aviation industry. From my perspective as a representative of Limerick city, we are entering an exciting period. This will prove to be a monumental decision on the part of the Government.

Deputy Jerry Buttimer

I wish to share time with Deputy Michelle Mulherin.

I welcome the debate, to which I wish to bring a different perspective by referring to Cork Airport which has not been mentioned by other Deputies. In the year to date 2.25 million passengers have passed through Cork Airport and that figure is expected to reach 2.4 million by year end, which shows that Cork Airport is the hub and gateway to the south. Seventeen new routes have been introduced at Cork Airport in the past two years, although the airport has also lost others and staff have expressed concerns about the future direction of the airport. Concerns have also been expressed about the loss of the slots at Gatwick Airport. The importance and potential of Cork Airport cannot be underestimated and I know the Minister of State at the Department of Transport, Tourism and Sport, Deputy Alan Kelly, as a Tipperary man, understands its strategic importance. Cork Airport is a hub and a gateway and acts as a counterbalance to Dublin Airport and Shannon Airport. It is important, notwithstanding the interests of Deputies on all sides, that we recognise that Cork is the capital of the south. It has a large metropolitan area and is the location of a large proportion of the farming industry. It is only two and half hours by road from Dublin and is even closer to places such as Portlaoise, Tipperary, Waterford and Kerry. The importance of Cork Airport, therefore, must be acknowledged.

Deputies have spoken about the importance of aviation services. Cork has lost its ferry link with Britain. The Gathering is expected to drive local economies next year. The issue of transatlantic traffic at Cork Airport has been tinkered with for a long time and we know what happens when tinkering takes place. We saw what two previous Ministers for Transport, the late Seamus Brennan and Martin Cullen, did when they tinkered with aviation policy. We now have a Minister and a Minister of State who are prepared to take decisions. In saying this, however, it is important that the Booz & Company report and the report of Ernst & Young on Cork Airport are placed in the public domain. It is imperative that there is a counterfoil for Dublin Airport in terms of aviation policy and Cork Airport is that counterfoil.

When the Booz & Company report was commissioned, I held a special one day clinic to discuss the airport. I also made a submission to the consultants who were commissioned to prepare the report. Everybody who spoke to me highlighted the necessity of developing Cork Airport, the importance of short haul flights and new investment and the need to give the airport autonomy within the DAA. I welcome the Booz & Company report and the decision by the Government to retain Cork Airport within the DAA but it is important that it is given autonomy in deciding its future despite the huge debts that are crippling it, thanks in the main to the party opposite. That same party must also answer for crippling our country.

Deputy Timmy Dooley

Did the Deputy not want the investment in Cork?

Deputy Jerry Buttimer

Deputy Dooley is singing an old hymn. It is important to listen to the people.

Deputy Timmy Dooley

Read the facts.

Deputy Jerry Buttimer

If he consulted them he would realise that his party did not get it right.

Deputy Timmy Dooley

How did the debt arise?

Deputy Jerry Buttimer

I know the facts about Cork Airport better than he does. I will debate the topic with him anytime.

Acting Chairman (Deputy Paudie Coffey)

I ask the Deputies to speak through the Chair.

Deputy Jerry Buttimer

For Cork Airport to reach its potential, it needs to have space within the DAA umbrella. The plans set out by the Government will help that to become a reality but bold and difficult decisions will be required in regard to the DAA and how it does its business. Deputy O'Donnell spoke about terminal 2 at Dublin Airport. He is correct that we must look beyond Dublin. I look forward to the expansion of Cork Airport and the introduction of additional routes. I wish the new chief executive, Mr. McCarthy, well in his new role and hope that the Government will work with him in developing the airport.

Deputy Michelle Mulherin

The sentiments expressed by the Deputies from the mid west who spoke in this debate can be epitomised by the word "hope". The Government's plans for Shannon Airport are giving great hope to the mid west that the problems which have seen the airport haemorrhaging €8 million per annum in running costs alone, in addition to its burden of capital debt, will be addressed so that it can continue to play a significant role in the region. I welcome that hope for the sake of the people of the region but, just as Deputy Buttimer spoke on behalf of Cork, I speak on behalf of the people of the west and north west. It is not right that hope given to one area should be at the expense of developing another part of the country. From what can be gleaned from the plans for Shannon, it appears they will dash the hopes of the area from which I come.

Ireland West Airport Knock is an international airport and its runway has international capabilities. It has flourished from a seedling not by virtue of great corporate investments but because the people of the area got behind it. The area was ravaged by emigration and previously never had international connectivity. Monsignor James Horan captured the imagination of the people when he asked why they should not be connected. The facts speak for themselves, with 700,000 passengers passing through the airport on 25 international routes and five major airlines. They would not use the airport if they did not get a good deal. Knock Airport's efficiency was acknowledged by the Minister in his plans to deal with the State airports. Even though Knock does not enjoy the benefits accruing to State airports, it is none the less a true airport for the people. It is run by a trusteeship and all but one of the trust's members serve on a voluntary basis. The airport is integral to the future development of the west and north west region. We have great plans for tourism but we are peripheral and we need to be accessible. Multinational companies are attracted by the connections offered through Knock.

The plans for Shannon, in failing to consider the island holistically, diminish Knock's prospects. It has been suggested that an independent Shannon Airport will be great. I applaud the ambitions that have been set out for Shannon but I remind the House that it did not develop in the same way as Knock. It will be given a package to allow it to be self-financing and sustainable into the future. The Minister's comments suggest that passengers will be drawn away from airports like Knock which have operated on a shoestring budget. That is not the way we should approach our business. It has also been suggested that Knock and other airports should work with Shannon. This is a ridiculous suggestion, however. Who sets out the policies for the airports in this country in terms of how they operate vis-à-vis each other and the parameters for their future development? We need a national strategy because we cannot focus on one region in isolation. This Government and Parliament serve all the people.

Deputy O'Donnell spoke about balanced regional development. This decision attacks competitiveness and the free market. Knock Airport almost exclusively operates in the free market other than the capital grants and running cost grants it receives from the State, which are minuscule in comparison to the amounts paid to the State airports. We need a reality check on Knock. Unless an overall strategy is developed, decisions will be made in isolation to the detriment of other regions. While other airports, such as Cork and Dublin, remain in State ownership, they can hope for rescue packages should they need them. It is not acceptable that Knock should be left on its own simply by virtue of the way it came into being.

Deputy Richard Boyd Barrett

I am opposed to this motion because it will put Shannon Airport under further pressure to maintain itself by facilitating the US military war machine. By removing the most profitable component of Shannon, Aer Rianta International, the airport will be forced to increase its dependence on military traffic from the United States in order to maintain its viability. The Government is aware of this fact. The motion is also another stepping stone on the way to privatisation and undermining the conditions of workers and employees. The absence of consultation with staff and unions is indicative of what is going on.

I note that Michael O'Leary is opposed to the changes because he wants full privatisation of the airport.

Sadly, Michael O'Leary's concerns are ill-founded because, like with many of these quangos or established semi-State operations, moving them a little further away from direct State control into some sort of quango is a stepping stone towards privatisation. All the commercial pressures that drive companies towards privatisation will now begin to operate on Shannon because its most profitable component has been removed and because the hopes for a major expansion in passenger numbers are absolute fantasy, particularly against a global background of falling passenger numbers and economic crisis in this country and in Europe.

The idea that Shannon Airport will be able to increase civilian passenger numbers significantly is pie in the sky. What will happen is that Shannon Airport will be pushed into further dependence on US military traffic. This process has been apparent for quite a while, but it will accelerate now. If one were a conspiracy theorist - I am not - one would wonder whether matters such as this were discussed by the Government with US Secretary of State, Hillary Clinton, during her visit last week. There is certainly no doubt about the key role Shannon Airport has played in facilitating the US war machine nor about how important the US Government considers Shannon to be in propping up its war machine. It was no coincidence, for example, that when President Obama was visiting Moneygall he made a point of saying how important Shannon Airport was and how grateful the US Government was for the facilitation of the US military there. With the economic viability of Shannon Airport seriously under question, undermined and under pressure as a result of the Government's proposal, the pressure to expand its facilitation of the US military machine will increase significantly.

It is worth pointing out what the terrible cost of this has been for a country that is supposed to be militarily neutral and which has asserted in its Constitution that we should in no way play any part in facilitating military conflict on the international stage or participate in wars. For ten years now, since the horrors of the 9/11 obscenity that took place in New York and the war on terror that ensued, we have seen the barbaric war in Iraq claim 1 million lives or more, tens of thousands of lives claimed in Afghanistan and the abomination of the US rendition programme, where the most powerful and supposedly most democratic and civilised state in the world engaged in routine kidnap and torture of alleged terrorist suspects and maintained places like Guantanamo Bay, where people are left for years without trial. The fact that Shannon Airport is part of that architecture is appalling. Our current President has been very forceful on this over the years and has called for an end to it. The Labour Party, prior to the election, said it was utterly opposed to the use of Shannon Airport to facilitate the US war machine, yet here we are about to adopt a measure that will put further pressure on Shannon Airport to depend on this traffic in order to sustain itself as a viable entity.

With the austerity, the economic crisis and all the other terrible things happening in society, this matter will pass under the radar for most people. In some ways this is understandable, but it is vital to register opposition and protest against this move and its implications in terms of deepening Ireland's involvement with the US military machine as it continues to engage in its brutal war mongering in Afghanistan. This comes at a terrible cost to the people there. We know economic crisis and military conflict go together historically. Sadly, given the deepening global economic crisis and the huge instability we see in areas like the Middle East, it is quite probable we will see further military ventures conducted by the United States over the coming years. Again, Ireland will be involved in those as it is becoming a kind of outlying military base for the United States war machine. This motion, to separate Shannon Airport from the Dublin Airport Authority will move it even further in that direction.

I oppose this motion strongly and appeal to the Government to understand that what airports should be is part of our vital civilian infrastructure. They deserve to be subsidised - this goes for Knock and other small airports - because they are part of our vital infrastructure. They should not be dependent on the toings and froings of the global market and certainly should not be dependent on the war machine of the United States or anywhere else.

Acting Chairman (Deputy Paudie Coffey)

I call Deputy McNamara, who will share his time with Deputy O'Mahony. Is that agreed? Agreed.

Deputy Michael McNamara

I thank the Chair for the opportunity to speak on this important motion for the constituency I represent, Clare. I understand the Opposition spokesperson, who is also from the constituency, Deputy Dooley, has outlined his opposition to this measure. I do not wish to characterise unfairly what he has said and I understand his opposition is two-fold, first he is concerned that the plan is overly ambitious and second, that Aer Rianta International will remain with the Dublin Airport Authority. I note the Deputy assents to that characterisation of his opposition.

Deputy Timmy Dooley

The second part, not the first.

Deputy Michael McNamara

I will deal first with the criticism that the plan is too ambitious. I make no apologies for the fact the plan is ambitious. I recognise there is a risk. There is always a risk when one tries to do something. Abraham Lincoln said that when one tries, there is always the danger one will fail, but if one does not try, it is certain one will fail. I am very much heartened by the fact the Government has an ambitious plan for Shannon Airport. This plan seems to be successful to date and I hope it will be successful into the future.

Like me, Deputy Dooley will know there is not unanimity in any party on any issue, be it a budget or be it the separation of Shannon Airport from the Dublin Airport Authority. He will also know that the mayor of Clare, a decent man, speaking about the planned separation, said recently:

Any airport that relies on a single airline for a large proportion of traffic leaves itself open to a collapse of business if that operator pulls out. We have seen this happen in Shannon in the past, but I believe recent service announcements by Delta, Aer Lingus and United Airlines herald a new beginning at the airport.

I thank the mayor of Clare for putting his constituency and the future of Shannon Airport above narrow party interests.

Deputy Timmy Dooley

The Deputy will be aware that all happened under the current regime.

Deputy Michael McNamara

I also thank the mayor of Ennis for doing likewise, when he urged everyone to get behind plans for the independent Shannon Airport, saying it is critical for the local economy and employment in the town.

With regard to Aer Rianta International, I wish to cite a recent article by Mr. Liam Skelly, a former director of Shannon Airport. He lives in the same parish as I do and he knows Shannon Airport intimately. Speaking about the debate which took place on the State Airports Act, a long time ago when Deputy Dooley was a Senator, he said the solution proposed and to be voted on was as follows: Dublin Airport was to get immediate autonomy with enhanced status. Shannon and Cork airports were to get a kind of satellite status and the Aer Rianta International division of Shannon Airport was to be gifted to Dublin Airport, now called Dublin Airport Authority, the accumulated profits at 2004 amounting to €104 million, to be included.

He said the Dublin Airport Authority was to be gifted the deeds of the Great Southern Hotels and the Aer Rianta International investments in Birmingham and Hamburg, both of which were to be sold a few years later for €355 million. He believed any reasonable person who tried to analyse what was happening could only come to the conclusion that the real agenda being pursued was geared to the enhancement of Dublin Airport. It was clear to him that Shannon and Cork airports were seen as no more than a sideshow in the whole affair and that if either of them had anything of value, it would be taken from them. Mr. Skelly said "the treatment meted out to Shannon through the State Airports Act was nothing short of appalling."

Deputy Timmy Dooley

He was right.

Deputy Michael McNamara

He was.

Deputy Timmy Dooley

That is why it never happened.

Deputy Michael McNamara

The Deputy voted for it. It happened on his watch.

Deputy Timmy Dooley

It did not. It will come to fruition today when the Deputy and his colleagues vote for it.

Acting Chairman (Deputy Paudie Coffey)

Will the Deputy, please, resume his seat?

Deputy Timmy Dooley

On a point of order-----

Acting Chairman (Deputy Paudie Coffey)

I will not take a point of order.

Deputy Timmy Dooley

On a point of order to Deputy Michael McNamara-----

Acting Chairman (Deputy Paudie Coffey)

I have asked the Deputy to resume his seat.

Deputy Timmy Dooley

Is it open to me to offer Deputy Michael McNamara a point of order and give him an opportunity to accept it?

Acting Chairman (Deputy Paudie Coffey)

No, it is not, unfortunately. The Deputy has had his 15 minutes to contribute.

Deputy Timmy Dooley

Deputy Michael McNamara can accept my point of order.

Deputy Michael McNamara

I have no objection to the Deputy raising a point of order with the Chair.

Deputy Timmy Dooley

Will the Deputy accept a point of order from me?

Deputy Michael McNamara

It is not for me to accept a point of order. It is a matter for the Chair.

Acting Chairman (Deputy Paudie Coffey)

Please, Deputies.

Deputy Michael McNamara

Deputy Timmy Dooley is correct when he says the State Airports Act was an abomination for Shannon Airport.

Deputy Timmy Dooley

The Deputy and his colleagues are implementing today what Mr. Skelly was concerned about in 2004. The Deputy is helping to put it through.

Acting Chairman (Deputy Paudie Coffey)

I ask the Deputy Dooley not to interrupt.

Deputy Michael McNamara

It did not happen on the Government's watch. The Government's ambitious plan for Shannon Airport has been welcomed by the mayor of Clare and the mayor of Ennis. I want the plan to succeed. We are not here to talk about the State Airports Act which was passed a very long time ago.

Deputy Timmy Dooley

We are giving effect to it.

Deputy Michael McNamara

We are here to talk about the future. I look forward to the future of Shannon Airport with hope.

Deputy Timmy Dooley

Given that the Deputy is a lawyer, I am surprised by his lack of knowledge about how legislation works.

Deputy Michael McNamara

Like my colleague, Deputy Carey, and everybody else on the Government benches, I will happily face the electorate and be judged on the success of Shannon Airport and every other issue on which I vote in this House.

Deputy Timmy Dooley

I want to correct the record. The Deputies must understand that the State Airports Act 2004 will-----

Acting Chairman (Deputy Paudie Coffey)

Please, Deputy.

Deputy Timmy Dooley

The State Airports Act 2004 will come into effect today when Deputy Michael McNamara presses the "Yes" button.

Deputy Michael McNamara

I have mentioned what Mr. Liam Skelly thinks.

Deputy Timmy Dooley

The Government is giving effect to what he was concerned about.

Deputy Michael McNamara

The Deputy voted for it.

Deputy Timmy Dooley

It is unbelievable.

Deputy John O'Mahony

I hope I can bring some reason to the debate to which I am glad to contribute. The Shannon and mid-west region welcomed last week's announcement by the Government that Shannon Airport was to be separated from the Dublin Airport Authority, that Shannon Airport was to receive support and incentives and that its debt would be written off. This is being done to arrest the decline of the airport which has lost over 100 million passengers since 2007. Any such development anywhere on the island would have to be welcomed as long as it led to the creation of jobs, etc. However, it should not be done at the risk of undermining or destabilising any adjacent airport. In this instance, the two closest airports are Cork Airport and Ireland West Airport Knock. I will bow to Deputy Jerry Buttimer's knowledge of Cork Airport, the virtues of which he has espoused.

I want to concentrate on Ireland West Airport Knock. If certain things are not done, the airport could be undermined or destabilised. The Minister and the Government need to take a number of actions to ensure this does not happen. An overall plan for aviation is needed. The Booz & Company report recommended that this be done before the separation of Shannon Airport from the Dublin Airport Authority. We are familiar with some previous aviation decisions that were badly thought out. For example, the last Government built terminal 2 for passengers who never arrived. I ask the Government to engage in a meaningful way with Ireland West Airport Knock in order that a long-term plan can be agreed and supported and the airport's potential can be fully explored and exploited. In this context, I was glad to facilitate last Wednesday the appearance before the Joint Committee on Transport and Communications of the management of Ireland West Airport Knock, at which meeting the officials outlined their plans for the airport. Similarly, I welcome the Taoiseach's agreement to meet the board and management of the airport in the near future to listen to their plans and respond to them.

Everybody understands that in current economic circumstances, the Government is not in a position to write a cheque for €100 million for Ireland West Airport Knock. If the authorities at the airport are to proceed with confidence and create further jobs in the environs of the airport, it is important for them to know there is a definite plan that will be supported. Ireland West Airport Knock employs 100 people and supports a further 900 jobs in the wider region. It would be inconceivable if an airport which has been praised by many stakeholders in aviation and government circles were to be punished in any way for the success it has achieved up to now. Ireland West Airport Knock is in a good place, but it needs certainty and a plan that will allow it to develop on the basis of its recent growth. Passenger numbers increased by 11% in 2011, which is in contrast to all other airports in Ireland. In 2012 almost 700,000 passengers will use the airport which will enjoy 5% growth. It has been referred to as a model lean, mean airport, with a small management team that is ready to deliver on the huge potential of the north-west region.

People might accuse me of approaching this issue from a parochial perspective simply because I represent the Mayo constituency in the House. Ireland West Airport Knock is as important to the north-west region as Shannon Airport is to the mid-west region. My mission is to ensure the airport is supported and allowed to grow in order that it will reach its potential by accommodating 1 million passengers in the not too distant future. The Minister, Deputy Leo Varadkar, and many involved in the aviation industry have referred to it as a lean low-cost airport, with a small managerial hierarchy. Its operational subvention per passenger is 87 cent, which is in contrast to subsidies of €6 or €8 per passenger paid to the State's regional airports. The aviation industry is of significant importance to the future of the country. Ireland West Airport Knock is of substantial importance to the north-west region because it provides the accessibility needed if the potential of the region is to be developed. It is very important for us to secure its future by drawing up a definite plan that will be supported by the Government.

Minister of State at the Department of Transport, Tourism and Sport (Deputy Alan Kelly)

I thank all the Deputies who contributed to the debate on the motion. Some of those who spoke were passionate. I am glad that there is so much interest in the success of Shannon Airport. It is important not only to the people of the mid-west but also to the people of the entire western hinterland. I will respond to some of the points made by various Deputies.

Like everyone else who has commented genuinely on this matter, I appreciate the historical achievements of Aer Rianta International which has been a success story for many years. It was always the intention that Aer Rianta International would remain within the ownership of the Dublin Airport Authority. It can maximise its potential by benefiting from the funding, borrowings and balance sheet capacity of the authority. Aer Rianta International's retail business is integrated with that of the Dublin Airport Authority. It benefits from the group's buying strategies, expertise and purchasing power. This integrated business model also delivers significant corporate management expertise to Aer Rianta International, including in the areas of information technology, treasury, finance, legal risk and governance. Aer Rianta International is an integral part of the Dublin Airport Authority group at this stage. If the financial viability of the Dublin Airport Authority were to be compromised as a result of its separation from Shannon Airport, that separation could not happen. That is why it was always intended that Aer Rianta International would stay within the authority.

In fairness to Deputy Timmy Dooley, his comments are well received. He knew what was envisaged when he voted for separation in the context of the 2004 legislation, as Deputy Michael McNamara said.

Other Deputies raised the issue of the impact of this decision on other airports, particularly Knock Airport. I was surprised by some of the comments, although I accept the views are genuinely held. I do not believe this should be an either-or situation. Competition is healthy. This is about increasing the total passenger numbers, particularly into the airports along the west coast.

I fail to see why a number of Deputies did not recognise the fact that the State contributes a lot to Knock airport in particular - over €40 million since 1993.

Deputy Dara Calleary

That is the wrong figure.

Deputy Alan Kelly

We can go into that. In fairness, if the management wants to talk to the Department, the Minister or myself in regard to that subsidy and how it should work, or the various different subsidies the airport has received through the years, the doors will be open for it to do that. Comments have been made in this House and outside that this could in some way be against state aid rules. That is absolutely not the case.

Deputy Dara Calleary

The Minister of State should check the PSO.

Deputy Alan Kelly

Some Deputies, although not as many as I would have thought, made reference to the issue of the workers in this scenario, particularly those from Shannon Airport and Shannon Development, whose current terms and conditions are to be transferred - although, to be fair, this was enshrined in the 2004 Act. Discussions have taken place with ICTU, which will have representation on the implementation steering group that is being established, as it will also have on the future board. It is important to acknowledge the workers in both organisations who have contributed much to the region and to broader policy in the country. I know this as I live and work among them, and many of them live quite close to me. It is important that the terms and conditions are transferred over.

There are great possibilities for the mid-west with the changeover in regard to the future work of Fáilte Ireland and Enterprise Ireland in the region. There have been some positive developments in the budget with regard to enhancing this decision on the future of the airport - for example, many of the budget activation measures and the aviation incentives with regard to capital schemes to construct hangars and other ancillary facilities and to finding other funding sources for the airport. These will be expanded on by the Minister for Finance in the near future.

A number of Deputies made reference to the projected passenger numbers, which are ambitious, although I make no apology for that. We cannot continue on as we are, with 1.5 million passengers this year. I also point out that there have been a number of recent announcements about the airport, such as that from United Airlines, and also from Aer Lingus in regard to Faro. These announcements are positive for the airport and will have a huge impact on the mid-west, although I note they will not have an impact on Knock. While the passenger numbers are ambitious, they are achievable.

What we are aiming for is the creation of an international aviation services centre that can generate non-passenger revenue. We have MOUs for 850 jobs, which I presume everyone in the House welcomes. We are also looking to develop more than 3,000 jobs in the next five years, and I am sure the Deputies opposite will be quite visible in welcoming those jobs when they materialise.

There is great capacity at Shannon Airport, which is a unique airport and one of which I am very supportive. It has the longest runway in Europe, it has pre-clearance and it has lands available to it. We have to leverage those competitive advantages, which is what this strategy is all about.

Deputy Ellis said the Labour Party was in favour of privatisation. I genuinely do not have a clue what he is referring to. If he can find one such utterance in regard to Shannon Airport, he might show it to me, as I do not believe it is there.

Deputy Dessie Ellis

We will see it in the future.

Deputy Alan Kelly

Deputies Niall Collins and Timmy Dooley referred to the impact on the mid-west, and particularly to PayPal. If we have a stronger airport into the future, which we will have under this process, we will have a greater opportunity to attract inward investment.

Deputy Timmy Dooley

It is a big "if".

Deputy Alan Kelly

I am sure the Deputy will accept that. Unfortunately, I do not have time to address the other contributions. I very much support the motion. This is a great policy for the airport. We cannot stand still or just continue on as previous Administrations did. We need to put a plan together. This is a fantastic plan and one that will be successful. I ask the House to support the motion.

Amendment put:

The Dáil divided: Tá, 36; Níl, 85.

Tá

• Adams, Gerry.
• Boyd Barrett, Richard.
• Browne, John.
• Calleary, Dara.
• Collins, Joan.
• Collins, Niall.
• Colreavy, Michael.
• Cowen, Barry.
• Daly, Clare.
• Donnelly, Stephen S.
• Dooley, Timmy.
• Ellis, Dessie.
• Ferris, Martin.
• Flanagan, Luke 'Ming'.
• Halligan, John.
• Healy, Seamus.
• Healy-Rae, Michael.
• Kelleher, Billy.
• Kirk, Seamus.
• Kitt, Michael P.
• Martin, Micheál.
• McConalogue, Charlie.
• McDonald, Mary Lou.
• McGrath, Finian.
• McGrath, Mattie.
• McGrath, Michael.
• Moynihan, Michael.
• Ó Cuív, Éamon.
• Ó Fearghaíl, Seán.
• O'Brien, Jonathan.
• O'Sullivan, Maureen.
• Ross, Shane.
• Smith, Brendan.
• Tóibín, Peadar.
• Troy, Robert.
• Wallace, Mick.

Níl

• Broughan, Thomas P.
• Bruton, Richard.
• Burton, Joan.
• Butler, Ray.
• Buttimer, Jerry.
• Byrne, Catherine.
• Byrne, Eric.
• Carey, Joe.
• Coffey, Paudie.
• Conlan, Seán.
• Connaughton, Paul J.
• Conway, Ciara.
• Coonan, Noel.
• Corcoran Kennedy, Marcella.
• Coveney, Simon.
• Creed, Michael.
• Daly, Jim.
• Deenihan, Jimmy.
• Deering, Pat.
• Doherty, Regina.
• Dowds, Robert.
• Doyle, Andrew.
• Durkan, Bernard J.
• English, Damien.
• Farrell, Alan.
• Feighan, Frank.
• Fitzgerald, Frances.
• Fitzpatrick, Peter.
• Flanagan, Charles.
• Flanagan, Terence.
• Hannigan, Dominic.
• Harrington, Noel.
• Harris, Simon.
• Hayes, Tom.
• Heydon, Martin.
• Hogan, Phil.
• Humphreys, Heather.
• Humphreys, Kevin.
• Keating, Derek.
• Keaveney, Colm.
• Kehoe, Paul.
• Kelly, Alan.
• Kenny, Seán.
• Kyne, Seán.
• Lawlor, Anthony.
• Lyons, John.
• Maloney, Eamonn.
• Mathews, Peter.
• McCarthy, Michael.
• McEntee, Shane.
• McFadden, Nicky.
• McNamara, Michael.
• Mitchell O'Connor, Mary.
• Mulherin, Michelle.
• Murphy, Dara.
• Murphy, Eoghan.
• Naughten, Denis.
• Neville, Dan.
• Nolan, Derek.
• Ó Ríordáin, Aodhán.
• O'Donnell, Kieran.
• O'Donovan, Patrick.
• O'Dowd, Fergus.
• O'Mahony, John.
• O'Reilly, Joe.
• O'Sullivan, Jan.
• Penrose, Willie.
• Perry, John.
• Phelan, Ann.
• Phelan, John Paul.
• Quinn, Ruairí.
• Rabbitte, Pat.
• Reilly, James.
• Ring, Michael.
• Ryan, Brendan.
• Shatter, Alan.
• Shortall, Róisín.
• Stagg, Emmet.
• Stanton, David.
• Timmins, Billy.
• Tuffy, Joanna.
• Twomey, Liam.
• Varadkar, Leo.
• Wall, Jack.
• White, Alex.

Tellers: Tá, Deputies Michael Moynihan and Seán Ó Fearghaíl; Níl, Deputies Paul Kehoe and Emmet Stagg.

Amendment declared lost.

Question put: "That the motion be agreed to."

The Dáil divided: Tá, 83; Níl, 36.

Tá

• Bruton, Richard.
• Burton, Joan.
• Butler, Ray.
• Buttimer, Jerry.
• Byrne, Catherine.
• Byrne, Eric.
• Carey, Joe.
• Coffey, Paudie.
• Conlan, Seán.
• Connaughton, Paul J.
• Conway, Ciara.
• Coonan, Noel.
• Corcoran Kennedy, Marcella.
• Coveney, Simon.
• Creed, Michael.
• Daly, Jim.
• Deenihan, Jimmy.
• Deering, Pat.
• Doherty, Regina.
• Dowds, Robert.
• Doyle, Andrew.
• Durkan, Bernard J.
• English, Damien.
• Farrell, Alan.
• Feighan, Frank.
• Fitzgerald, Frances.
• Fitzpatrick, Peter.
• Flanagan, Charles.
• Flanagan, Terence.
• Hannigan, Dominic.
• Harrington, Noel.
• Harris, Simon.
• Hayes, Tom.
• Heydon, Martin.
• Hogan, Phil.
• Humphreys, Heather.
• Humphreys, Kevin.
• Keating, Derek.
• Keaveney, Colm.
• Kehoe, Paul.
• Kelly, Alan.
• Kenny, Seán.
• Kyne, Seán.
• Lawlor, Anthony.
• Lynch, Ciarán.
• Lyons, John.
• Maloney, Eamonn.
• Mathews, Peter.
• McCarthy, Michael.
• McEntee, Shane.
• McFadden, Nicky.
• McNamara, Michael.
• Mitchell O'Connor, Mary.
• Mulherin, Michelle.
• Murphy, Dara.
• Murphy, Eoghan.
• Naughten, Denis.
• Neville, Dan.
• Nolan, Derek.
• Ó Ríordáin, Aodhán.
• O'Donnell, Kieran.
• O'Donovan, Patrick.
• O'Dowd, Fergus.
• O'Mahony, John.
• O'Reilly, Joe.
• O'Sullivan, Jan.
• Penrose, Willie.
• Perry, John.
• Phelan, Ann.
• Phelan, John Paul.
• Quinn, Ruairí.
• Rabbitte, Pat.
• Reilly, James.
• Ryan, Brendan.
• Shatter, Alan.
• Stagg, Emmet.
• Stanton, David.
• Timmins, Billy.
• Tuffy, Joanna.
• Twomey, Liam.
• Varadkar, Leo.
• Wall, Jack.
• White, Alex.

Níl

• Adams, Gerry.
• Boyd Barrett, Richard.
• Broughan, Thomas P.
• Calleary, Dara.
• Collins, Niall.
• Colreavy, Michael.
• Cowen, Barry.
• Daly, Clare.
• Donnelly, Stephen S.
• Dooley, Timmy.
• Ellis, Dessie.
• Ferris, Martin.
• Flanagan, Luke 'Ming'.
• Halligan, John.
• Healy, Seamus.
• Healy-Rae, Michael.
• Kelleher, Billy.
• Kirk, Seamus.
• Kitt, Michael P.
• Martin, Micheál.
• McConalogue, Charlie.
• McDonald, Mary Lou.
• McGrath, Finian.
• McGrath, Mattie.
• McGrath, Michael.
• Moynihan, Michael.
• Ó Cuív, Éamon.
• Ó Fearghaíl, Seán.
• O'Brien, Jonathan.
• O'Sullivan, Maureen.
• Ross, Shane.
• Shortall, Róisín.
• Smith, Brendan.
• Tóibín, Peadar.
• Troy, Robert.
• Wallace, Mick.

Tellers: Tá, Deputies Paul Kehoe and Emmet Stagg; Níl, Deputies Seán Ó Fearghaíl and Michael Moynihan.

Question declared carried.

Sitting suspended at 1.30 p.m. and resumed at 2 p.m.