Dáil debates
Tuesday, 8 November 2005
Adjournment Debate.
Air Services.
8:00 pm
Jan O'Sullivan (Limerick East, Labour)
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I tabled this question last Wednesday and Thursday and I have finally succeeded in having it taken. I tabled it following the failure of the Minister for Transport to listen to the reasoned voices coming from the mid-west and the west urging the need for an economic impact study and an adequate lead-in period before altering the 50-50 share of transatlantic air services guaranteed for Shannon and Dublin since 1993. I understand the Minister for Transport has already gone to the US. He met some of the workers in Shannon this morning and I do not know at this stage what he told them. I am pleased a Minister of State from the mid-west region is present tonight and I hope he will be able to answer some of my questions.
It is staggering that the Minister for Transport has refused to carry out an impact study, despite a request from a group representing the chambers of commerce of Ennis, Shannon and Limerick, IBEC west and mid-west, SIPTU, IMPACT, the Irish Hotels Federation and tourism and leisure businesses in the region. The mid-west regional authority has also been ignored. I do not know whether this is pure arrogance or a complete lack of concern for the western half of the country, but all these requests have fallen on deaf ears. The Government has seen fit to pay for studies and consultancies on a myriad of subjects â the Minister of State, Deputy Callely, has graced the newspapers for which the money was found â yet this vital strategic element that has been a core factor in the economic success of the region is to go with no evaluation of the possible effect of this.
The Minister appears set on making this momentous change in the regulation of air traffic without any real idea of what will happen. I acknowledge that if things go well, the opportunities could outweigh the losses. However, if things do not go well for Shannon and if all the airlines decide to concentrate their flights in the capital city, which has been a pattern in other European countries where it was allowed, the result could set back drastically the economic development of the mid-west and the west and skew the balance of population and economic activity even more to the eastern seaboard than is the case already. We simply do not know what will happen because the Government has not bothered to find out. This is highly amateur and dangerous.
The Chambers of Commerce of Ireland took the matter seriously. The report carried out by Frederick Sorensen and Alan Dukes stated that Shannon would run into difficulties unless active and forceful supporting activities are undertaken. The US Congress is taking the matter seriously. It has authorised the Secretary of State to prepare a report within 180 days on the effects of ending the dual gateway policy on US businesses operating in western Ireland, Irish businesses operating in and around Shannon Airport and United States carriers serving Ireland. There is genuine fear that a healthy economic framework with hundreds of companies and thousands of jobs could collapse if the vital regular freight and passenger services are withdrawn by airline companies whose only brief is to make money, not to maintain regional economic development. That is the Government's responsibility.
The Minister's course of action is not being forced on him either by the US or the EU. The US is prepared to assess the effects of change. The EU has indicated that it would be willing to facilitate a lead-in time. However, I understand from my sources that the Government has not yet requested such a lead-in time. Will the Minister of State's response answer that question?
A lead-in period of five years would allow for the effects of change to be monitored. It would allow for infrastructural improvements and marketing supports to be put in place. Surely in the week when the same Minister for Transport announced a plethora of transport improvements for Dublin costing billions of euro, including a metro to Dublin Airport, he can do this much for Shannon. He might also do more than a study into the rail link to Shannon.
I want to ask about our local Fianna Fáil and Progressive Democrats representatives, one of whom is in the House. Deputy Peter Power has already done a U-turn. The Minister for Defence, Deputy O'Dea, the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen, and the Minister of State at the Department of Education and Science, Deputy de Valera, have buried their heads in the sand and cast aside the passion they adopted when it threatened Shannon in the past. The ideology of the Minister of State at the Department of Health and Children, Deputy Tim O'Malley, and his party seems to have won. The ideology of the PDs has obviously carried the day in this regard. The survival of the fittest philosophy is not concerned with regional balance; it is just concerned with allowing the market to make money where it can.
The Minister for Transport, Deputy Cullen, has not yet commenced his talks and it is not too late to ensure that decisions are made with the benefit of knowledge and care. I urge the Government to listen and respond to the broad voice of concern on both sides of the Atlantic. Very little information is being made available. I do not know what was said this morning in Shannon Airport. Very little information is coming to vital interests in the mid-west on the intentions of the Minister, Deputy Cullen, in regard to his trip to the US this week. I hope there will be some enlightenment this evening.
Ivor Callely (Dublin North Central, Fianna Fail)
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I thank the Deputy for raising this matter. However, this matter has been dealt with by my colleague, the Minister for Transport, Deputy Cullen, in several parliamentary questions, most recently on 19 October. The Minister has consistently said he does not believe an economic impact study is required.
The restructuring of the State airports, including Shannon, is intended to enhance their regional focus and the close co-operation between the new Shannon Airport Authority and the other regional development bodies in the area is extremely encouraging. The forecasts for Shannon are good. I object to what Deputy O'Sullivan said about my colleagues, the Minister for Defence, Deputy O'Dea, Deputy Peter Power, the Minister of State at the Department of Education and Science, Deputy de Valera, the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen, the Minister of State at the Department of Health and Children, Deputy Tim O'Malley, and Senator Dooley, all of whom have a great interest in the development of Shannon and have knocked on the door of the Minister, Deputy Cullen, on many occasions. Perhaps because of their input, commitment and dedication some of what is happening in Shannon arises from the work of the Minister for Defence, Deputy O'Dea, Deputy Peter Power, the Minister of State at the Department of Education and Science, Deputy de Valera, the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen, the Minister of State at the Department of Health and Children, Deputy Tim O'Malley, and Senator Dooley and, hopefully, that will continue.
There are opportunities for Shannon Airport to contribute to the development of the mid-west. The liberalisation of the aviation market between the EU and the US will mean more, not fewer, opportunities for Shannon to develop new routes into North America. We should look at the positive side and encourage new opportunities to maximise whatever potential may exist. Currently, Irish airlines are restricted to only five cities in the US for normal scheduled services. However, the advent of open skies will mean Irish or European airlines can fly into any airport in the US. The opening of US airports to services from Ireland, for example, provides an opportunity for the development of Shannon as a hub for passengers or cargo coming from eastern Europe going onwards to the US. It is clearly a matter for the Shannon Airport Authority to pursue these kinds of opportunities. However, without open skies, these opportunities simply will not exist.
There is clearly demand for service between Ireland and the US. Aer Lingus has been approached by several airports in the US with a view to beginning services. It will be a matter for Shannon Airport to compete and to lobby Irish, European and US airlines to take advantage of this potentially huge increase in new services. This is the central thrust behind the Government's policy of making the State airports independent of each other, so that they can compete with each other and, therefore, collectively provide the best and optimal level of services for Ireland.
The report prepared by the former head of air transport policy and external aviation relations for the EU Commission and Alan Dukes, director general of the Institute of European Affairs concluded, contrary to what the Deputy may have said, that the EU-US open skies agreement will be beneficial for Ireland, and that Irish business, tourism and aviation will get a boost. The report is clear that Shannon will maintain links to the US but that it must improve its links to Dublin and Europe as a way of underpinning its US services. In that context I am encouraged by the recent new services that are starting from Shannon into Europe and the UK. I understand that has been with much support and encouragement from my Fianna Fáil and PD colleagues in the area and, hopefully, all other political people who can assist will sign up also.
The report mentions improving transport links around the west and this is addressed in Transport 21, launched last week. Transport 21 identifies the investment that is required to further develop all elements of national transport infrastructure, addressing existing bottlenecks and capacity constraints, enhancing quality, optimising the use of the network and making prudent advance provision for future economic growth. In particular, Transport 21 is all about connectivity. It is regrettable that the Deputy indicated it was only a Dublin plan. It is not. There is a huge amount in it for Limerick and, hopefully, the Deputy will see the benefits of not alone this Government policy but of Transport 21 for her region.