Billy Kelleher (Cork North Central, Fianna Fail)

I thank Deputy Breen for raising this matter. The Deputy referred to this country's reputation and the fear that we would be seen as bureaucratic and in a state of paralysis. The contrary is the case. All surveys on this area show that this country is nimble and flexible. It is very much seen as being pro-business in terms of setting up business here or establishing companies for investment purposes. We would not wish a negative view to be portrayed without correcting it.

The mid-west task force has already made its recommendations on the Lynxs cargo facility project and the project is currently being considered by the Minister for Transport. The Dublin Airport Authority has statutory responsibility for the operation, management and development of the three State airports. The Minister for Transport advised in February 2009 that the DAA had concluded a memorandum of understanding with the Lynxs Group, a global airport cargo facility company, to explore jointly the feasibility of developing a major cargo facility at Shannon Airport. I understand that the basic concept underlying the proposal was, among other things, to secure existing cargo at the airport, increase the potential for cargo growth and to provide flexibility and operational readiness for the potential requirements of US cargo pre-clearance in the event that the US authorities would agree to cargo pre-clearance at a future date.

The involvement of a global air cargo development company, such as the Lynxs Group, was seen by the DAA as important for the provision of investment and to raise the profile of the facility in the freight community and cargo industry generally. In the initial phase, it is proposed that there would be investment in a new cargo facility that would involve the transfer of existing cargo operators from current locations. In later stages, it is proposed that the facility might be expanded to attract increased traffic and to realise the airport's potential as an airfreight hub, as well as further opportunities that might evolve from pre-clearance, which would underpin the development of a logistics, distribution and manufacturing cluster in the Shannon area.

It is recognised that Shannon has a number of strengths, such as a well developed economic hinterland and its proximity to major economic and distribution centres in the United Kingdom and Europe. It can also reap the benefits of current and pending road access improvements. The Minister for Transport also advises that, on the other hand, the DAA has to operate to a commercial mandate and it does not have access to unlimited funds to undertake capital investment. Any investment that the airport undertakes must be evaluated carefully to ensure that there is a commercial business case.

I understand the Department of Transport has recently received the DAA's evaluation of the business case for the project. Consideration of the best way to support the project will take account of the extent of potential investment by the DAA on foot of its evaluation of the business case and any support that could be provided by the State, subject to compliance with EU state aid rules. The DAA has financed pre-clearance facilities at Shannon at a cost of some €22 million since it became operational for commercial aircraft on 5 August 2009. The service is working very well for all concerned. Given the significant investment involved in the construction of the pre-clearance facility, it is hoped that as many flights as possible would use the pre-clearance services there. The next phase of pre-clearance is to extend its use to private aircraft en route to the United States. Following close engagement with the US authorities in recent weeks, preparations for general aviation pre-clearance are well advanced and it is hoped that the service will become operational in the coming weeks.

This is a welcome development for Shannon and one that I know the authority there will market vigorously. There is great scope for growing this market given that already significant numbers of private aircraft land at Shannon for refuelling and other technical reasons prior to completing the journey to the US. The pre-clearance agreement with the United States does not provide for cargo pre-clearance currently. However, that is an issue the Minister for Transport has raised with the current and previous US Secretaries for Homeland Security. Both of them were receptive to giving further consideration to cargo pre-clearance from Ireland, once passenger pre-clearance is fully established.

The issues facing the mid-west region are the issues facing other regions and facing the country as a whole. The situation in the mid-west was exacerbated by the Dell decision. The work of the mid-west task force has helped to focus the response of Government and agencies. The Tánaiste is very grateful for the work Mr. Brosnan and the other members of the task force have undertaken to date. The task force has identified a number of issues for further study in its final report, which she looks forward to receiving in the coming weeks.

We have had such discussions in previous Dáil debates. The DAA is commercially mandated to operate Shannon Airport and any investment has to have a business plan and to make sound commercial sense if it is to receive clearance.

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