Pat Breen
Ceist:42 Mr. P. Breen asked the Minister for Transport the current position regarding the bilateral talks between the US and Ireland. [20275/04]
Amharc ar fhreagraWednesday, 7 July 2004
Ceisteanna (26, 27)
Jan O'Sullivan
Ceist:52 Ms O’Sullivan asked the Minister for Transport the position in regard to the Shannon stopover; the decisions that were reached on this issue at the meeting of EU Transport Ministers on 10 and 11 June 2004; the discussions he has had with US officials on the subject; and if he will make a statement on the matter. [20403/04]
Amharc ar fhreagraFreagraí ó Béal (9 píosaí cainte)
I propose to take Questions Nos. 42 and 52 together.
EU Transport Ministers discussed this issue at the Transport Council held on 11 June 2004. At that time there was a proposed air transport agreement between the EU and the US on the table which would have included open skies between the EU and US. Transport Ministers felt that the deal on offer was unbalanced in favour of the US and asked the European Commission to continue urgent negotiations with the US, particularly in view of the then upcoming EU-US summit on 26 June 2004.
Despite those last minute efforts by the Commission, it was not possible to bridge the gap in time for the EU-US summit. Accordingly, the negotiations are now paused for the summer. I understand that contacts between the EU and US sides will recommence possibly in September with full negotiations commencing possibly by the end of this year on the few items that are left to be agreed.
During the discussions at the Transport Council, Ireland once again made it clear that while we are in favour of reaching an EU agreement with the US, Ireland's agreement is contingent on an acceptable arrangement on Shannon Airport being agreed between Ireland and the US, and that deal being reflected in the EU-US agreement.
On 4 and 5 May 2004, my officials travelled to Washington to discuss this issue with the US. I also spoke to the US Transportation Secretary, Norman Mineta, about this issue when I met him at various meetings on a number of occasions in the months leading up to the Transport Council. No agreement was reached at any of these meetings. However, I am satisfied that had an EU-US deal emerged from the Transport Council, an arrangement for Shannon Airport would have been reached between Ireland and the US in the run-up to the signing of the EU-US deal at the summit.
Currently, there are no EU-US negotiations taking place. However, that does not mean that Ireland or the EU can stand still. There is no doubt that an EU-US agreement is inevitable once the difficult issue of market access for both EU and US carriers is solved. I am therefore maintaining contact with the US side.
Does the Minister think that a ten-year lead-in period for change in the current bilateral agreement would be better than the much shorter period he is proposing? Deputy Naughten noted that the Minister is long-fingering development of the western rail track, but he is certainly fast-tracking his airport policy. A ten-year lead-in period would ensure that the infrastructure, such as the rail and road links and so on, is in place which would give Shannon a chance to get new business. The Minister knows that satisfactory talks were held with US officials in Dromoland Castle and he could negotiate a ten-year agreement. It is important.
Regarding the proposed sale of Aer Lingus, if the Government becomes a minority shareholder, will the current bilateral agreement be null and void?
It is not up to the Irish Government. The bilateral situation cannot continue indefinitely. I know that the Signal group in Shannon has put a figure of ten years on it, and I would be happy to get as many years as possible. It is a matter for negotiation in the sense that access to the US by Aer Lingus, for example, is important. I am told that up to 20 cities in the United States have indicated to Aer Lingus that it could have access if it had the aircraft to fly into them. It currently flies into five cities in the United States. I am told that up to 20 cities have approached Aer Lingus to indicate they would like services. While that is not to say Aer Lingus will operate from those cities or has the aircraft to do so, the indication is there.
When the EU-US talks recommence, particularly when the United States election is out of the way, there will be fairly quick agreement and we will get open skies. My job is to ensure, in the context of open skies between the United States and Europe, that we get a deal for Shannon that gives it time and space to put plans in place and to further develop the airport. I am totally opposed to any sudden shocks for Shannon in this area and totally supportive of getting the most appropriate and maximum space for it in the context of the open skies policy generally, which in the long term will be of benefit to Shannon as well as to the country. I am determined I can deliver for Shannon the best possible deal and assure the House I am on Shannon's side in this debate.
The Minister keeps saying he is on Shannon's side and wants to see the west develop, which is fine. However, let us hear what he is actually trying to achieve. The Minister says he wants to ensure an acceptable arrangement for Shannon. What, in his view, is an acceptable arrangement in terms of the phasing out of the dual gateway policy? Would the Minister not accept that whatever the critics of the stopover say, it has been the only meaningful instrument used by Government over many years to achieve some kind of balance in regional development? If the Minister is on the side of Shannon, has he any proposals for when the stopover is completely phased out in terms of improving access to the airport so that passengers can reach it more easily than they can currently gain access to Dublin Airport, and ensuring the achievement of other spin-offs? What does the Minister regard as an acceptable arrangement in terms of phasing? How will he compensate for the loss of business due to the ending of the stopover?
Much is going on in the Shannon region. A significant amount of money is being invested in infrastructure, Ennis has been by-passed, the motorway to Galway has been privatised to create access to the airport and a study of the rail link from Ennis to the airport has been sanctioned. In addition, the Irish Aviation Authority and Enterprise Ireland are being moved to Shannon. The investment in the infrastructure of the region shows that the Government is fully committed to it.
On the aviation side, I will accept the best number of years I can get to allow the Shannon Airport Authority to attract other airlines and United States cities, and more direct business from the United States, the UK, the EU and generally. I am sure that whatever package we can put together will be acceptable to the people of Shannon as a practical road forward. I will work day and night to bring about that acceptable deal.
Is it not a fact that the European Commission has no problem with any internal arrangements Ireland has with the US and that the senior aviation official in the European Union is on record as saying this? If Aer Lingus is sold or the Government becomes a minority shareholder, is it not the case that the current bilateral agreement becomes null and void?
The bilateral agreement has nothing to do with Aer Lingus as such. It applies to all airlines. Whoever owns the airline — Americans, Chinese or otherwise — airlines coming from the United States have to abide by the bilateral agreement.
We might have to rely on the Chinese.
It does not matter whether it is Aer Lingus, Delta or Continental — they must all adhere to the agreement. The answer to the Deputy's question is that the agreement is not affected.
Written Answers follow Adjournment Debate.