Dáil debates

Wednesday, 27 May 2015

Aer Lingus Share Disposal: Motion (Resumed)

 

4:15 pm

Photo of Michelle MulherinMichelle Mulherin (Mayo, Fine Gael) | Oireachtas source

I congratulate the Minister for holding out for the very best deal in the sale of the State's shareholding in Aer Lingus. There has been a lot of talk about uncertainty, guarantees into the future and so forth, but the reality is that there were no such guarantees. The Minister has put us in a much stronger position. I have no doubt that the deal involving a sum of €355 million and numerous other terms, conditions and restrictions to protect the interests about which everybody was concerned was achieved through the Minister's thorough and tenacious approach. Furthermore, I have no doubt that Aer Lingus would have been sold a couple of months ago had the decision been left to the Department of Transport, Tourism and Sport. The Minister deserves great credit for this. My own experience with the Department stems specifically from its dealings with Knock Airport over the years. When I consider its attitude to the airport, I can only describe the airport as a miracle operating on a shoestring. During the years the Department displayed a bias against it; it favoured the status quoand the State airports. Knock Airport is not a State airport because it was not lucky enough to receive Government support and was spawned in great part with moneys raised by the people. Therefore, it never fitted the bill as far as the Department was concerned. Any concession given to it was given begrudgingly.

Everytime there has been a suggestion made regarding Knock Airport, the Department has found a reason not to do, rather than to do. As well as welcoming the reference to Knock in the commitments under this deal, I also want to focus on the benefits that can flow from the €335 million with the investment of this money into the strategic investment fund which includes a connectivity fund to fund transport projects. We have a golden opportunity and I am asking the Minister to take the same approach as he did to getting this optimum deal on Aer Lingus and to give a commitment, a statement of intent, that moneys will be ring-fenced towards Ireland West Airport, Knock. I am saying this because I know there have already been conversations, reports and studies. There is a case before the European Commission about state funding.

The Minister's commitment to capital expenditure and operational expenditure is €12 million per year over the next five years. However, when that €12 million is broken down, €7.5 million is already going to the PSOs to Kerry and Donegal airports, which leaves very little to be divided between Kerry, Donegal, Waterford and Knock. The whole objective is that Knock would become self-sustaining and not need money from the Government indefinitely. Why am I singling it out as opposed to other regional airports? I believe there is a special case as I have mentioned to the Minister previously. No area is more disadvantaged. Sometimes when we talk about making a case for the west or wherever, we are accused of being parochial. When we talk about Dublin or some good-news story, it is all in the national interest. I would like to talk about where I come from and the significance of Knock Airport and the need to ring-fence money now that we will have money. I accept that in the past we did not have money. The Government has been so concerned and consumed with bailing out the country that this could not happen previously.

We are in a peripheral area. North west of a line between Louth and Galway, with the exception of Galway, there is no major interurban route. There are no dual carriageways or motorways north of Galway. The area has suffered very badly from emigration. Much of the success from a passenger point of view in Knock is down to many of our emigrants using Knock to come home. We try to use it for business and all the other add-ons. However, it needs support and help. The region can be likened to the Scottish Highlands and islands which receive substantial subsidies from the Scottish Government because of their circumstances, including emigration. With the exception of Donegal, all the other regional airports I have mentioned are close to the hub of another State airport in Dublin, Cork or Shannon. So we are talking about a huge region that does not have an international airport other than Knock.

As I have said, we are not serviced by a motorway. We have problems because of that lack of connectivity. We also do not have a high-speed railway connection into the area. Examining the economic and social markers and indicators for the region shows significant economic and growth disadvantage, which is nothing new. However, we want to be empowered to be the best we can in the area and Knock is crucial in this. A package has been put together for Knock but there are many contingencies, as the Minister might agree. The reality is that this a great-news story from the point of view of growth for Dublin - growth in passengers and the growth of Dublin Airport as a hub. We have already seen substantial investment in the mid-west, in Shannon. All of these can be welcomed and be seen to be done in the national interest. It is time we had a substantial investment in Knock.

The Dublin Chamber of Commerce rightly welcomed the additional 2.5 million passengers that will come into the Dublin region. However, when comparing the ratepayers in Dublin with the ratepayers in the west, where I come from, while I have no doubt the Dublin ratepayers are paying substantial rates, they do not have to subsidise their local airport, which is what is happening under the deal with Knock. The debt of Knock has had to be taken over by the local authorities, which are relying on the commercial rates. So ratepayers are not only paying their rates, but are also supporting their local airport.

Knock Airport very much needs a break. This represents a golden opportunity. It is not about being parochial. It is about saying that doing this is empowering a region in very many respects. It is crucial and pivotal. Those concerned are seeking only a few years of that support that will put them at a tipping point where it can be self-sustaining. The Department's traditional approach should be cast aside so we can have a marked change. Now is the chance to do it. I am asking for a commitment on Knock Airport. The Minister's commitment on capital and operational expenditure is in place but there are too many airports vying for that money. I have made a special case. I am not taking from any of the regional airports. None of them has the history of Knock or its strategic importance. I know they are important to their areas and I would not wish to undermine that in any way. Where there is a will there is a way and I am asking for that will to be shown today.

Comments

No comments

Log in or join to post a public comment.