Pat Gallagher (Donegal South West, Fianna Fail)

The future development and growth of all international and regional airports in the State will depend largely on how each airport responds to the new challenges and the extent to which emerging opportunities, such as open skies, can be exploited. In this context it is clear that if Shannon Airport is to develop as a successful and sustainable business, one of the issues that must be addressed is the airport's uncompetitive cost base. On 5 April last, the airport workforce voted to accept a restructuring programme which has been drawn up to achieve €10 million cost savings annually for the airport. Management is now implementing the programme. Critical to its success is the realisation of some 200 voluntary redundancies from the company. If the necessary cost savings are achieved then the airport will have a solid basis for business planning and responding effectively to the opportunities and challenges of open skies.

The economic and tourism development plan for the Shannon catchment area is close to finalisation and is due to be considered by Government in the coming weeks. In drawing up the plan, the Minister for Transport and the Marine consulted with his colleagues, the Ministers for Arts, Sport and Tourism, Enterprise, Trade and Employment, Finance, and Communications, Energy and Natural Resources. The Minister also welcomes the input to this process of the liaison group established by the Mid-West Regional Authority. The group comprising the Mid-West Regional Authority, Clare County Council, Shannon Development, the Shannon Airport Authority, SIGNAL and IBEC, brings together key stakeholders with a shared commitment to the development of the Shannon region.

The report puts forward a series of wide ranging and ambitious proposals to this end. The recommendations span infrastructure development, tourism product development, tourism promotion and institutional reform. Not surprisingly, there is considerable overlap between the proposals and existing initiatives that are under way or planned.

I want to assure Deputy O'Donnell that the report and its recommendations have been examined by the relevant Departments in the preparation of the proposed tourism and economic development plan for the Shannon catchment area. As I have said, the plan is now being finalised. It will be considered by the Government in the coming weeks and, subject to Government approval, will be published as soon as possible thereafter. It would, therefore, not be appropriate for me to comment in any more detail before the Government has considered the matter.

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