Joe Carey (Clare, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to this important Second Stage debate on the State Airports (Shannon Group) Bill 2014. This Bill is positive for Shannon Airport, County Clare and the mid-west region generally. On many occasions I have sought an update on the status of this Bill during the Order of Business in this House and in discussions with the Minister. It is welcome that it is being debated here today and will be enacted prior to the summer recess.

I sincerely congratulate the Minister for Transport, Tourism and Sport on the dramatic changes he has brought about at Shannon Airport in the last three years. Throughout its tenure the Government has prioritised Shannon, and the State Airports (Shannon Group) Bill is the final piece of the legislative jigsaw which will lead to a bright future for the mid-west region. The airport has always been recognised as the engine of the mid-west, strategically located between the cities of Limerick and Galway, with Ennis, the county town of County Clare, nestled between the two. Recognition and rhetoric are easy, but ensuring that Shannon Airport fulfils its undoubted potential has been more difficult to achieve.

I recall meeting Deputy Leo Varadkar in the weeks after he was appointed Minister in 2011 and anxiously putting in front of him a document entitled Shannon: A New Beginning, which I drafted with the assistance of others from the Shannon region. I am more than pleased to say that the proposals in that document have been implemented by the Minister to a significant extent. Back then I suggested the future of Shannon depended in the first instance on a restructured airport, independent of others and properly resourced. Most importantly, the airport needed to be independently empowered in a manner capable of achieving success. While we are still in the initial phase of that change, the new structure is clearly identifiable and progressing. There is a renewed energy and vitality in the airport. The structure is based on a clear strategy of independence for Shannon, with responsibility lying with those at board, executive and staff level for its future.

There is, of course, a further implied responsibility on the people of the mid-west to support this vital piece of infrastructure, and especially now, as this Bill puts in place the final elements of the plan envisaged in the report presented by the Shannon aviation business development task force in November 2012. The number one priority for the new independent Shannon was to bring about an end to the dramatic reduction in passengers using the airport over the previous five years. The passenger data for those years, from 2006 to 2012, illustrated a most depressing and frightening trend of large-scale losses in passenger throughput, with over two thirds of business at the airport lost. The new structures as introduced by this Government have brought about a halt in the devastating passenger decline, with an initial modest growth in passenger numbers in 2013. More importantly, in the year to date, passenger traffic is up by 10.4%, and when one compares May 2013 with May 2014, traffic is up by 20%. This growth is mainly due to increases in scheduled services by both Aer Lingus and Ryanair and is also due, in part, to the abolition of the travel tax and the retention of the 9% VAT rate for the tourism and hospitality sectors.

While these figures are hugely encouraging, big challenges still lie ahead. The Minister and the Government have clearly delivered on their responsibilities and the challenge now is for all of us who are stakeholders in the Shannon region to deliver on the opportunity created by the Government. This is the implied responsibility to which I referred earlier. In this regard, I compliment the chairperson of the new Shannon board, Rose Hynes, on the energy, commitment, flair and skill she has shown in the past two and a half years. She has been a significant player in the creation of a new atmosphere and renewed confidence in the Shannon region. Under her guidance, the airport authority has achieved its stated goals for 2013, including stabilisation of the financial position and putting a stop to passenger decline while entering passenger growth mode, together with achieving greater connectivity. I also pay tribute to Mr. Neil Pakey, the new chief executive officer, who has proved that he is a world-class addition to the team at Shannon Airport. I also compliment members of the board, the management team and employees on their hard work and commitment.

One of the initiatives needed now is to enhance the level of engagement of the new Shannon with all of the stakeholders in the region. In this regard, I am interested in the Minister's reference to the initiative undertaken by the DAA in Cork, with the setting up of the Cork Airport Development Council, CADC. I have from the outset argued that such a forum would be worthy of consideration in Shannon. It would tie in all of the stakeholders who are not necessarily directly represented on the board. Such a forum, as is the case with Cork Airport, should include senior representatives from the business, commercial, tourist, leisure and community sectors in the mid-west region and further afield, with a view to creating a stronger sense of ownership from as broad a region as possible. Such a structure existed in the 1990s with the Shannon status committee, which was probably the only time in the history of the airport that an interface between those responsible for the running of the airport and the broader community who depended on it was in place.

As well as taking the decision to create an independent airport in December 2012, the Government also made the decision to combine the airport with a restructured Shannon Development. Following the enactment of this legislation, Shannon Airport will become part of the Shannon Group plc, a new commercial semi-state company with a clear strategic and commercial mandate. Shannon Group plc will comprise four strategic business units, combining the property ownership and management activities of Shannon Airport together with the activities of Shannon Commercial Enterprises, which is the restructured Shannon Development, Shannon Heritage and the International Aviation Services Centre. Shannon already hosts 40 aviation-related companies, and this legislation will act as a driver for further growth in this industry. I am pleased to see the two-pronged structure for Shannon and it makes sense that those responsible for the airport and the separate commercial activity in the region will now be reporting and answerable to one board. In my opinion, the lack of clarity and unity of purpose between the entities that were previously responsible caused problems on occasion.

As the whole process comes to a conclusion with this Bill, the focus in the past 18 months has almost exclusively been on Shannon Airport. It would be remiss of me and other Members of this House not to place on the record the significant contribution made by Shannon Development to the region since its inception in 1959. It has served the area well and with distinction. In developing and operating 52 business and technology parks around the greater mid-west area, Shannon Development has a unique insight into what works throughout the region. The expertise it developed with respect to tourism and the introduction of specific tourism products is another area in which Shannon Development excelled. I fully expect that as a primary part of this new entity, it will bring a unique perspective and expertise.

I note in the recent Seanad debate that Independent Senator Sean D. Barrett gave us the benefit of his knowledge of the efficiency and cost base of our three main airports. He particularly identified the poor productivity levels at Shannon compared with Cork. Obviously, this is a challenge for the new Shannon management and structure, but I believe it can be significantly addressed by increasing passenger numbers and levels of activity at the airport without increasing the operational cost on a pro-rata basis. He raised a valid point and one that must be kept under constant review.

I made reference at the outset to my early meetings with the Minister following his appointment, in which we both reflected on the concerns for staff in any restructured Shannon Airport. My concern for Shannon Airport was not just with regard to the urgency of revitalising the airport for the benefit of the whole region. I was always conscious that revitalisation of the airport could not and should not be done at the expense of staff.

The employees at the airport, past and present, are key stakeholders and their views and opinions are critical and invaluable in all major decisions on its future. In that regard, I acknowledge the constructive and sensitive comments of the Minister in both the Seanad and this House on matters pertaining to the pension entitlements of the staff at Shannon Airport. There is no doubt that this is a significant issue and, like many other Members, I have received representations in respect of it. I hope, however, that the legislation will not be defined by this matter alone. It is ultimately in everybody's interests that Shannon Group, as an economic entity, be both vibrant and profitable and that it be able to contribute to the future stability of the airport and offer a return on pensions.

The proposals contained in the Bill fit very well with the sense of empowerment, responsibility and innovation at the core of the thinking of the men and women who developed Shannon Airport during the past 70 years. I particularly highlight the debt owed to people such as the late Dr. Brendan O'Regan and those public servants of Aer Rianta whose vision not just for the airport but also its ancillary activities always ensured the airport punched above its weight. Innovative products and initiatives such as Bunratty Folk Park, the Shannon School of Catering, the Aeroflot fuel farm, the industrial park at Shannon and the international duty free service are all landmarks in the proud history of the region. Those to whom I refer would strongly support the new structures being put in place, particularly as they dovetail with the spirit of innovation and can-do attitude displayed by the individuals in question. I am sure Dr. O'Regan would see this as a great challenge and opportunity to which everyone in the region should respond.

I thank the Minister for displaying such interest in the Shannon region, persevering with this issue and bringing about a structure that is clearly working for the benefit of the region. I compliment the management, board and staff employed at the airport on the sterling work they are doing on our behalf. I look forward to the Bill's passage through the House.

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