Mary Harney (Dublin Mid West, Progressive Democrats)

I propose to take QuestionsNos. 6 and 54 together.

As I have indicated in response to previous similar parliamentary questions and the earlier question from Deputy Howlin, Shannon Development at present performs a range of functions on a delegated authority basis for Enterprise Ireland. Under the decentralisation proposals, the headquarters of Enterprise Ireland, involving 300 of its Dublin based staff, will move to Shannon. In these circumstances it has been decided that these functions should revert to Enterprise Ireland. This is an entirely practical development as it would make little sense to have two agencies in the same town performing the same functions. The decision, which is fully supported by the board of Shannon Development, will result in the transfer of between 50 and 100 Shannon Development staff engaged in these functions to Enterprise Ireland.

There have been other developments impacting on the mid-west region which necessitate a review of the role of Shannon Development. First, it has been agreed that the management of Shannon town should be transferred from Shannon Development and vested in Clare County Council. This is a decision that has been made for practical reasons and both Shannon Development and Clare County Council are in agreement.

The Minister for Transport proposes to establish an independent Shannon Airport authority and this proposal also has the support of the board of Shannon Development. Without an independent and viable Shannon Airport, the task of guaranteeing the entire region's future as a tourism destination and as a location for investment would be made considerably more difficult. In that regard, one of the options under consideration is to transfer the assets of the Shannon free zone to the new airport authority. No decision has been taken on this issue. The transfer of the assets would mean no change to either the status of the zone or its attractiveness as an investment location.

In light of these changed circumstances, I met with the chairman, some members of the board of Shannon Development and the chief executive of the company on several occasions to explain and expand on matters under consideration. At all of these meetings, I also asked the board to bring forward detailed proposals in regard to the role Shannon Development can play in the future in the context of the changes under way.

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