I thank you, a Chathaoirligh, for allowing me to raise this important matter on the Adjournment this evening as I know that there are many other demands. I am delighted to see the Minister of State, Deputy Treacy, present. As the Minister is aware this is an important issue which has been repeatedly raised in this House because of the great concern in the west and mid-west regions.
Figures recently released by Aer Rianta show an 8 per cent drop in traffic to Shannon Airport in the first nine months of this year. The figures have confirmed the worst fears of the people in the west and mid-west regions. The widespread fear and apprehension is further compounded by detailed studies and reports by Aer Rianta about the future of Shannon Airport. The projected figures show that traffic through Shannon will be down by 7 per cent in 1995 and total traffic will be reduced by a further 2 per cent in the following year. The Aer Rianta surplus from Shannon of £4 million in 1993 will be cut to £1.8 million in 1994 and to £1.5 million in 1995.
The Shannon task force stated in its report that unless this trend can be promptly arrested and reversed the only outlook for Shannon is one of inexorable decline. It goes on to say that the knock-on effect of the decline could set in motion a cycle of falling investment and employment in both industry and tourism throughout the airport's hinterland. Such strong statements by the task force must give cause for serious and grave concern and highlight the need for urgent action.
I welcome the fact that the Minister visited Shannon recently and announced the establishment of the Shannon Airport marketing group which was recommended in the task force report. However, it was a pity he did not provide the funding recommended by the task force for the new marketing agency — a conservative annual budget of £3.5 million. There was great play made of the fact that £2 million was being allocated to this agency. However, we must realise that the Government is not providing an additional £2 million subvention to this agency or to the mid-west region. I understand that this funding will consist of £800,000 from SFADCo and £500,000 from Aer Rianta which will be taken from their current budgets. Between £200,000 and £500,000 will be provided by direct subvention from the Government. This is a long way from the £3.5 million recommended by the task force report.
We are tired of the Minister, Deputy Cowen, visiting the area and making statements urging the people of the region to support our airport and our region in order to provide the prosperity and jobs to which we all aspire. The people of the west and mid-west have been doing this but the Government has acted directly against our interests. It is time the Minister provided leadership on the issue of Shannon Airport. It is time he exuded confidence about its future by investing in local infrastructure in the airport and by directing the national airline, Aer Lingus, to provide additional flights to London at a competitive cost vis-á-vis those being provided from Dublin to London. In addition, he should direct the national airline to provide direct flights from Shannon to Manchester and Birmingham.
Why has no flight been put on the Shannon-Stansted route which was operated by Ryanair until quite recently? Over 60,000 people were carried on that route, yet Aer Lingus has not been urged by the Minister to provide a service on it. The onus is on the Minister to act on these matters rather than to plan for an opt out on Shannon. He should give leadership and confidence to the region.
It is time a proper national aviation policy was put in place. The policy should take into account not just the interests of the airline but also the interests of the airport — an aspect that is fundamentally lacking in current aviation policy. On previous occasions we have discussed the concept of making Shannon a hub for Aeroflot flights and flights from other airlines in the CIS states. I again urge the Minister to expand Shannon as a wayport providing access to Aeroflot to direct flights from Shannon into New York on pick-up traffic. This was strongly recommended by the task force but, unfortunately, the Minister to date has not acted on it. It is an important policy that could be developed in the future and through which much traffic could come through Shannon.
Many recommendations are made in the task force report. To date the Minister has only attempted to act on one of them, and he has not fully implemented it. A number of other recommendations in the report fall within the Minister's ambit and the onus is on him specifically to deal with them. My greatest concern at this stage is the overall attitude of the national airline, Aer Lingus, which is the responsibility of the Minister. We have observed, repeatedly and consistently, a pro-Dublin policy being promoted by Aer Lingus. It can be seen in its advertising at both national and international level, and particularly in its advertising directed at passengers travelling from the United States to Ireland. The Aer Lingus promotional video on the transatlantic flight is very pro-Dublin: a substantial amount of its content deals with Dublin while other parts of the country receive a small amount of coverage. That must be addressed.
The situation is not helped by the cost of fares. The Minister should get his officials to conduct a survey on the flight costs from Shannon to London and from Dublin to London. There are serious discrepancies between the two. I have received a number of representations on this matter. I received the first last May when I was told that a man from the Shannon region tried to book a flight from Shannon to London for November 1994. At that stage the cheapest fare quoted to him was £256 and he was advised that he would get a much cheaper flight from Dublin. After further inquiries he was quoted a substantially cheaper price for a flight from Dublin. There is no way Shannon can compete while the national airline is not giving equal treatment to both airports. This matter must be addressed. There are counter-arguments but the reality is what people experience. This matter is within the Minister's ambit and he must address it.
The task force is clear about what must be done within Shannon Airport. It states clearly that Shannon Airport is the only national airport that does not have a proper lighting system. There is an urgent need to have the lighting of the runways in Shannon upgraded. I urge the Minister to do this quickly. I understand that Aer Rianta has put money aside to do this work. Unfortunately, however, it has not been done to date. Other recommendations in the report do not come specifically within the Minister's ambit. However, other specific action must be taken. I hope the Minister in his reply will address the various recommendations of the task force report, will outline what action is being taken in relation to them and when we can expect a positive input from him and the Government on these issues.
It is clear from the serious statements made in the report what the future of Shannon will be if action is not taken by the Government:
Unless this trend can be promptly arrested and reversed the only outlook for Shannon is one of inexorable decline.
We are experiencing that already in the tourism industry in County Clare. We have been told that increasing numbers of people are travelling through Shannon but the official figures from Aer Rianta show that there was an 8 per cent decline. The Minister can make the excuse that it is due to a reduction in transit traffic. The reality, however, is that hoteliers and guesthouse owners have experienced a very difficult tourist season. On 15 July about 35 hoteliers held a crisis meeting in the mid-west to address the huge reduction in the number of American tourists through Shannon Airport and in their hotels. This is a real problem. The figures compiled by the hotels and those compiled by Aer Rianta do not tally. The position is serious.
Because of emigration along the west coast, much of the traffic through Shannon consists of emigrants coming home or their relatives travelling to visit them. There is an onus on the Minister to do a more detailed analysis of the types of passengers coming through and their reason for travelling to see whether they are purely tourists or if they have a family connection. Family tourists will stay with relatives but true tourists will go to hotels and guest houses. I thank you again, a Chathaoirligh, for affording me the opportunity to raise this matter in the House.
