Dáil Éireann Debate, Wednesday - 9 May 2012
1Deputy Timmy Dooley asked the Minister for Transport; Tourism and Sport when he expects to make a decision on the future of Shannon Airport further to the publication of the Booz Report; and if he will make a statement on the matter. [23064/12]
Amharc ar fhreagraDeputy Dooley's question relates to the timeframe for making a decision on the future of Shannon Airport. I am pleased to inform the Deputy that at its meeting yesterday the Government decided in principle that Shannon Airport will be separated from the Dublin Airport Authority and merged with parts of Shannon Development, including its property portfolio, to form a new entity in public ownership.
The Minister for Jobs, Enterprise and Innovation and I will revert to Government later this year with detailed proposals. These will include an implementation strategy for the establishment of the new entity and a plan setting out how it will contribute to strong regional development while ensuring the highest standard of enterprise support in the region. This decision is an exciting first step on a new road in aviation development in Ireland and it heralds a new era for the Shannon region.
The Minister, Deputy Bruton, and I will presently establish a steering group tasked with bringing forward detailed proposals on matters that arise from the Government decision. In particular the steering group will make recommendations on the optimum organisational structure of the new entity in regard to best supporting the future development of the Shannon area. Among other matters, the steering group will assess the feasibility of creating an international aviation centre of excellence at Shannon Airport. We look forward to working with the key stakeholders to progress the many issues that have to be addressed prior to going back to Government with detailed proposals later this year.
I welcome that the Government has at long last made a decision after procrastinating for the past 14 months. However, the decision puts the cart before the horse. The Minister outlined his plans to set up a steering group to bring forward detailed proposals but I would expect the Government to have a clear understanding of how to proceed with the development of Shannon. Today's statement contains nothing except a cut and paste of existing operations to other entities within the overall State structure. Dublin Airport Authority has been relieved of the burden of the €8 million which the region required.
When will the Government set out a clear strategy for growth in passenger and tourism activity at Shannon Airport? When will it set out proposals that show it is serious about regional development and not solely concerned with protecting the interests of the Dublin Airport Authority? When will it get real about the need to protect investment in the infrastructure that has played a vital role in the region's development and the 7,000 or 8,000 jobs that have been created there? This is a question for the Government as a whole because the Minister for Enterprise, Trade and Employment has taken a wrecking ball to Shannon Development, a State entity that has been responsible for the developing the region, creating jobs and allowing Shannon to pass through its different phases from light engineering to the knowledge economy.
The Government has set out a clear strategy for the region. We intend to recapture the pioneering spirit that existed at the foundation of Shannon Airport and the duty free zone. Shannon will become independent of the DAA and no longer will it have to carry its current debt burden. It will be able to set its own charges and compete properly with other airports. This strategy could work very successfully for the airport, although I understand there are mixed feelings about it in the DAA. Some people accept the decision but others are concerned that its success might threaten the dominance of Dublin. The new entity will combine the land assets around the airport with Shannon Development's skills in product and land development to develop an aviation services hub that creates jobs and investment.
One has to decide in these matters whether to wait until the process is complete before announcing one's strategy or to announce the strategy before putting an implementation group in place. Given the uncertainty that has existed over the past several months, I thought it made sense to go down this route.
Can the Minister confirm that it is his intention to transfer Shannon Airport free of debt to this new entity and that the Government will retain Aer Rianta International as an integral component of the new company?
It is our intention that the new State company will have no net debt. It will either be debt free or it will have a small amount of debt equal to its cash reserves. It may be important for the company to have cash reserves if it needs to make capital investments or absorb losses in its initial years. The reason it will be debt free is to recognise Shannon's contribution to the establishment of Aer Rianta International. The latter will remain part of the DAA group, which will be renamed to reflect its new mandate.
