John O'Donoghue (Kerry South, Fianna Fail)

We have all heard these dire warnings for some time. They are not representative of the general air of optimism for the future that is more evident in the Shannon region, especially in terms of maximising the potential of Shannon Airport. The airport has already this year reported a 36% growth in traffic and stated it is on target to deliver an additional 1 million passengers this year.

The Minister for Transport, Deputy Cullen, last Friday stated that this deal was hard won and gives Shannon Airport a good opportunity to prepare for the arrival of open skies. It also provides Aer Lingus with an opportunity to fly to three new destinations from 2006. This will enable the company to develop its transatlantic route structure in the approach to open skies, open new markets for Irish tourism, offer greater choice to consumers and facilitate the growth of jobs in Ireland. The Minister also announced proposals to prepare an economic and tourist development plan in consultation with the Minister for Enterprise, Trade and Employment and me to ensure Shannon Airport sustains and grows transatlantic air services. I look forward to working with these Ministers on this plan.

I am pleased that three additional gateways can be opened for Irish carriers next year. The Minister for Transport has stated that these points will be nominated by Irish authorities and there will be flexibility to change these cities during the transitional period. Market research carried out in the United States by the tourism State agencies has demonstrated a consistently high level of interest in Ireland as a holiday destination, and a high level of unsatisfied demand due to the limited number of direct access gateways and routes between Ireland and the USA.

It is sometimes forgotten that the bilateral arrangement between Ireland and the United States of America was a double-edged sword. Our national carrier was restricted to five gateway cities in the United States of America under the terms of the deal. Our national airline was accordingly prohibited from flying out of other gateway cities in the US. This was clearly to the detriment of the airline's business and the tourism business in Ireland. I accept the stopover had a beneficial use in its time. However, times have changed and there are now greater degrees of access to the country and far more carriers are entering Ireland. There are far more opportunities for Shannon than there were at the time of the stopover's introduction.

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