Alan Kelly (Tipperary North, Labour) | Oireachtas source

In the first instance, there is not a support package in place for Shannon Airport. The Deputy will recall that the Minister for Finance announced in his recent budget speech that he will put in place measures to facilitate the construction of hangars and ancillary facilities that will be key to attracting additional aviation sector organisations. However, these are based on an appreciation of the contribution that aviation can make nationally. They are aimed at attracting investment to Ireland.  These measures will be available on a national basis to all airports that wish to avail of them, including Knock and Shannon airports.

The Deputy also refers to aviation priorities and, reflecting this Government's recognition of the importance of the sector, I can confirm that one of our priorities for 2013 is the development of a new civil aviation policy. This process was initiated at a conference earlier this month and will be pursued through 2013, leading to the adoption of a new policy in 2014. In that context, I expect the role of both State and regional airports to be fully explored.

The Deputy will be aware that the Government decided last month to proceed with the separation of Shannon Airport from the Dublin Airport Authority and merge it with a restructured Shannon Development to form a new integrated Shannon entity in public ownership. The order specifying 31 December 2012 as the date of separation of Shannon Airport from the DAA was executed last week following its approval by both Houses of the Oireachtas. The Government also decided to rationalise the tourism and enterprise support activities in the region by transferring Shannon Development’s functions in these areas to the relevant national agencies.

The Government was faced with two ailing companies in Shannon that are not realising their potential to make a contribution to the economy of the wider region.  We are restructuring State-owned assets to make better use of them as a catalyst for the development of sectoral opportunities centred on the airport. I expect that these decisions will give rise to some degree of increased competition among Irish airports, including Knock airport. However, the aim is to increase the overall number of passengers to and from Ireland through increased efficiencies and the attraction of new aviation business that can have a beneficial national impact. 

It should be noted that Knock airport and the other regional airports which are not owned by the State have been supported over the years under the regional airports programme, which is aimed at ensuring balanced regional development.  Under that programme, Knock airport has received around €40 million since 1993. This includes funding for the public service obligation, PSO, air services, which, although paid directly to the airlines, also support the airport.  More than €1 million is being provided this year to the airport, despite the difficult economic circumstances.

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