Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

That creates some concern. Notwithstanding the fact that the airport was largely given the independent status in a debt-free way, the best advice from Booz was that if it was to be made independent, it would need external support to deal with potential shocks. I recognise the good work the management, staff and chairperson, Ms Hynes, have done in increasing the through-put of passengers. I was around in 2007 when the then Government believed the establishment of two independent entities at Shannon and Cork gave the best chance of a strong future for both airports. Notwithstanding that, the over-reliance on one particular carrier and the desire of that company to manipulate its activity ultimately put the airport in a precarious situation. I have concerns therefore that if there was to be a significant shock to the aviation sector internationally - examples of which we have seen on many occasions in the past - the airport would not have the capacity to rely on a source of revenue Booz identified as important for its survival.

I am concerned about the basis on which the legislation was first proposed which was that business plans could be put forward for both airports that showed their capacity to survive or not. In the case of Cork, it did not reach the threshold whereby it could survive on its own. The business plan for Shannon outlined the possibility of survival as an independent entity on the basis that it would have access to revenues from another source. If that were not the case, there would have been stronger objections within the region to the removal of Aer Rianta International, which has been a significant revenue generator for the entire group of companies. It was used to fund the expansion of what was Aer Rianta to assist in the development of Dublin Airport. That has been successful. It was always there and had the capacity to support Shannon in the event of a difficult patch.

What I am trying to elicit from the Minister is the safety mechanism in place for the establishment of Shannon Airport in an independent entity, recognising the vagaries of the aviation sector. What if there is a shock in the sector and a reduction based on a particular airline's future prospects? What is there to allow Shannon to trade through a difficult period? I do not see the safety mechanism in circumstances where the Minister says there is no capacity for cross-subsidisation. I accept that the section deals with the payment of dividends to the Exchequer. Of course, the Exchequer can decide in a particular year not to take a dividend where it would be perilous to the viability of the company. If it is not able to meet its basic cost requirements, Shannon faces potential difficulties.