Mary Harney (Dublin Mid West, Progressive Democrats)

Change is often resisted. The reality is that since the early 1990s Shannon Development only helped indigenous companies on an agency basis for Enterprise Ireland. That role was removed from it in the reforms put in place after the Culliton report. On an agency basis, it was given the role of supporting indigenous companies.

Obviously, when Enterprise Ireland was moving to Shannon, it did not make sense that the work being done by Shannon Development, on an agency basis, for Enterprise Ireland should continue to be done by Shannon Development. In fact, the board of Shannon Development wrote to me stating that since Enterprise Ireland was moving to Shannon, it proposed that the staff doing the work for Enterprise Ireland should move to the new agency. That involves up to 100 people, although the exact number is not clear. Frontline project management staff may account for 50 or 60, while the remainder are background, clerical, administrative and information technology staff. That was going to happen in any event.

When the 12.5% tax rate was introduced for the entire country, and when the Shannon Free Zone no longer had a favourable tax regime compared with any other area, there was no longer a need for a licence to enter the zone. The Revenue authorities have now taken over the responsibility for those matters. An economic development agency should not run a town. It is more appropriate for the local authority to do so. All these matters were happening with the support of Shannon Development.

The most important asset in the region is the airport. Unless we can get more passengers using that facility and provide more services to Europe in particular to help business and tourism, the region will not be able to grow to its potential. In that context. the free zone is under the aegis of the Department of Transport which owns the property. Shannon Development leases it and this matter has not been resolved. It is by no means a fait accompli and has not been agreed. Contrary to much speculation, both today and on earlier occasions, these matters have not been finalised.

There is a need to strengthen the asset base at Shannon Airport. Shannon Development has an asset base of approximately €260 million. The Government must focus not on how it organises itself in the region but on what needs to be done to make the region vibrant. We need a strong Shannon Development with a new focus and role. Last Friday, I had a good discussion with the chief executive and a number of board members about the new scenario. We must have an open mind on the best way of organising the State's assets in that region, to bring the greatest benefit to the area and, in particular, to the airport which is the largest asset in the region.

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