Dáil debates

Thursday, 24 November 2005

3:00 pm

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 8: To ask the Minister for Transport the precise measures he will use to ameliorate the negative economic impact on the mid-west region as a result of the ending of the Shannon stopover; if he will carry out an economic impact assessment; and if he will make a statement on the matter. [35911/05]

Paddy McHugh (Galway East, Independent)
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Question 172: To ask the Minister for Transport if an economic impact study will be initiated on the impact on the Shannon and west region of the recent agreement reached with the US on the Shannon stopover; if he will put further developments on this issue on hold until the study is complete; and if he will make a statement on the matter. [36206/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 183: To ask the Minister for Transport his proposals to alleviate the negative economic impact of the phasing out of the Shannon stopover; and if he will make a statement on the matter. [36263/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 186: To ask the Minister for Transport the way in which he expects the open skies policy to benefit the consumer; and if he will make a statement on the matter. [36266/05]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 8, 172, 183, and 186 together.

I refer the Deputies to my reply to a Priority Question earlier. The conclusion that open skies will be good for Irish tourism, aviation, business links and the economy generally is clear and I do not intend to delay those benefits further by commissioning another study on the impact of open skies. As already stated in reply to the earlier priority question, however, I have also been aware all along that open skies will present challenges for Shannon and that transitional arrangements are needed to allow the airport to meet those challenges. I have at all times made it clear that Ireland's support for the EU-US open skies deal is contingent on a satisfactory transitional period for Shannon and I have published details of that arrangement, which will give Shannon Airport a total of two and a half years of stopover arrangements before the open skies policy comes in fully for Ireland in April 2008. This additional time for Shannon will enable the airport to plan an orderly move to open skies and to explore how it can exploit the opportunities the policy offers.

I have sought and obtained assurances from Aer Lingus that, in the context of a level playing field between the airline and its competitors, it will maintain the current level of transatlantic traffic — approximately 400,000 passengers a year — with regular year-round scheduled services between Shannon and Boston and New York. All these transitional arrangements will allow Shannon Airport to plan the move to open skies in 2008 in an orderly way.

In addition to the transition secured for Shannon, Transport 21 will greatly enhance the infrastructure of the Shannon region and broaden the catchment area of the airport. I propose to prepare an economic and tourism development plan in consultation with the Ministers for Arts, Sport and Tourism and Enterprise, Trade and Employment to ensure Shannon Airport sustains and increases transatlantic air services.

Overall, I am pleased with the new opportunities that the open skies policy will offer Irish airlines and airports. It will mean even more prosperity for Ireland through increased services, tourism and trade links. I am convinced that the transitional arrangements secured for Shannon mean that, through the proven resourcefulness of those who run the airport, it will fully share in that prosperity.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Is the Minister saying he will not undertake the economic impact assessment requested by my colleague, Deputy O'Sullivan, and instead will prepare a regional plan for the future in conjunction with the Departments of Arts, Sport and Tourism and Enterprise, Trade and Employment? Will that take into account the necessity to compensate for the jobs and business that may be lost following the curtailment of the stopover? The Minister announced this fundamental change to air services in New York while he was negotiating Ireland's position in the open skies policy. Does he agree the fundamental problem in this regard is he allowed too short a lead-in to the change? Thirty months is too short for a major development in any region.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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While Shannon Airport faces significant challenges, it will also be presented with major opportunities. The change should be embraced positively, not negatively. I instanced why management at Knock Airport, which has a smaller hinterland compared with Shannon Airport, is positive about the open skies policy and looks forward to providing many transatlantic routes. As Shannon Airport is a major international brand in America, it should grasp the opportunity rather than look backwards. An economic impact assessment would have examined a fait accompli. We should look forward and my plan has been well received by management, unions and politicians in the area. It will embrace the future and maximise opportunities for Shannon Airport.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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What is the Minister's view on the open skies deal? Will it be in place prior to April 2008? If so, is he satisfied both Shannon and Dublin airports will not be disadvantaged and miss the boat by not establishing routes and so on?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Are there limits to the development of air travel? If the increase in air transport continues, it is predicted that by 2020 it will account for all the CO2 emissions Ireland is permitted under current EU targets. In addition, the peak in global oil production is imminent and that is likely to impinge on development. Has the Minister's Department set limits on the expansion of air travel?

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Deputy Olivia Mitchell would make a good snooker player as she tries to position me between two opposing points of view. The negotiations were difficult because I was trying to strike a balance to benefit the entire State but, equally, I wanted to achieved a transitional arrangement for Shannon Airport. The balance has been struck and even though open skies will be in place next year, there will not be an immediate explosion. All airlines whether they are based in America or Europe, will need to build capacity to take advantage. That transitional period will facilitate domestic airlines, particularly Aer Lingus, to do the same and they will not be disadvantaged.

The deal agreed in the EU-US negotiations, which was concluded last week, went well and more technical arrangements were agreed than everybody expected. It remains to be seen whether we will sign off on it at our December Council meeting. A two-step approach is likely. All member states will agree the deal in December but they will allow two or three months to monitor what happens in the control and ownership of airlines in America. It will be ratified at the March Council meeting and will be in place next year. That is generally the indication from all member states.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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I call Question No. 9. We have gone over time on this question.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Am I not entitled to an answer to my question?

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Chair has no control over answers.