Micheál Martin (Cork South Central, Fianna Fail)

As I indicated in response to similar questions previously, a number of developments will impact on the future role of Shannon Development. The most significant of these are the proposed relocation of the headquarters of Enterprise Ireland to Shannon as part of the decentralisation programme, the enterprise strategy group recommendation that Shannon Development disengage from industrial development functions and the establishment of an independent Shannon Airport Authority.

The new airport authority was incorporated in October. As I previously indicated, Shannon Development fully supports the decision to establish an independent airport authority and agrees it is vital to the economic development of the region. The company has further agreed on the need to refocus its activities on the airport with a view to generating business for the airport and to the use of its assets to support the airport authority, particularly in its early vulnerable years.

A number of options were identified by the working group established last July to examine the specific issue of how Shannon Development could best contribute to the development of the new airport and these remain under consideration. Shannon Development and the new airport authority have engaged in direct discussions on the matter and work under way on developing the business plan for the new airport authority will help inform the optimum relationship between the two agencies.

In light of these developments, the Shannon Development board has been asked to devise a new strategy for the company. I understand this exercise is at an advanced stage and the strategy will be submitted to me in the near future, following which I plan to have discussions with the board.

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