Dáil debates

Wednesday, 7 November 2007

8:00 pm

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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I wish to share time with Deputy O'Donnell.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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Is that agreed? Agreed.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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I raise this matter because time is running short in the context of saving the Shannon-Heathrow slots. We were recently informed that the slots could be retained by means of a public service obligation under EU regulations. I call on the Government to apply for the retention of the route under that obligation.

The new information regarding the slots emerged following meetings held in Brussels between the Shannon Action Group and EU officials at which it was indicated that the Shannon case could well fall within the definition of a public service obligation. The latter would normally be associated with the provision of services such as electricity, water supplies, etc., to people living in remote areas. What is less well known is that a public service obligation can also be applied where an area can demonstrate that connectivity is an economic necessity for a region and that its loss will significantly disadvantage that region. There is no doubt that the loss of the Shannon-Heathrow connectivity would put the mid-west and the west at that level of loss and disadvantage. This has been well demonstrated by the detailed facts and figures supplied by members of the Atlantic Connectivity Alliance and the Shannon Action Group. There is no doubt that jobs and investment have already been lost and that further jobs are under threat.

An application to retain the route must be made by the Government to the EU Commission and I call on it to make that application to protect the sustainability of the region.

The Government has already stated that the decision by Aer Lingus contravenes its policy on regional development. It was reluctant to interfere with that decision up to now because it interpreted company law as saying that it could not do so. We interpreted its actions as meaning that it did not want to interfere. The grounds for seeking a change are now very different and are based on its obligations and rights as a Government rather than as a shareholder of the company. The Government should apply quickly to the EU Commission to save and protect jobs in the mid-west and west before it is too late.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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How many minutes do I have?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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Two and a half minutes.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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The Ceann Comhairle might stretch it to three.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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The Ceann Comhairle should not give the Deputy more time than I had. It is my motion.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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I thank Deputy O'Sullivan for sharing her time. This is where we will see whether the Government will stand over its policies on balanced regional development. Deputy O'Sullivan is correct to state the Government can do this on its own. It can make an application for a public service obligation, PSO, for the Shannon-Heathrow route under EU Regulation 2408/92. Article 4 refers to vital economic necessity to a region on the grounds of connectivity. Everyone is agreed we need proper connectivity, which we have through the Shannon-Heathrow route. If the Shannon-Heathrow route goes we will lose 40 city destinations and we cannot allow this to happen.

I find it regrettable the Minister for Transport is not here. On several occasions, we raised this issue on the Adjournment but he was never here to address it. Rather than lecturing us on what we should do, it is about time he stepped up to the mark with the Taoiseach and delivered on the promise of balanced regional development. A PSO is a clear route of doing so. It requires the Irish Government to apply to the Commissioner for Transport, Mr. Barrot, to make the Shannon-Heathrow route a PSO route. This would effectively mean the route would be preserved for the region and the country.

We must also consider the possibility that this could apply to the Cork-Heathrow route. We seek balanced regional development throughout the country. I call on the Minister for Transport, Deputy Dempsey, to apply to the EU Commission to make the Shannon-Heathrow route a PSO route under Article 4 of EU Regulation 2408/92 on the grounds of connectivity and balanced regional development.

Photo of Mary WallaceMary Wallace (Meath East, Fianna Fail)
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The Minister for Transport fully recognises that connectivity to both Shannon Airport and the west of Ireland is a key concern. Ireland's existing air services public service obligation, PSO, scheme is focused on subvention of services from Dublin to Kerry, Galway, Knock, Sligo, Donegal and Derry. These PSO routes serve regional airports which, because of their remote locations and-or limited runway facilities, find it difficult to attract commercial scheduled air services. The PSO contracts expire in July 2008 and the Department has commenced consideration of the arrangements, including detailed tender specifications, that should apply for the next contractual period. Existing PSO services to the regional airports cost approximately €15 million per annum.

The relevant EU Council Regulation (EEC) 2408/92 of 23 July 1992 allows a member state to establish a public service obligation in respect of scheduled air services to an airport serving a peripheral or development region in its territory or on a thin route to any regional airport in its territory, where such air services are considered vital for the economic development of the regions concerned and where air carriers are not prepared to provide them on a commercial basis. Subject to EU Commission approval, member states may limit access to the route concerned to only one carrier, provided the right to operate the services is offered to air carriers by public tender. They may also pay a subvention in respect of these routes subject to compliance with the criteria in the Council regulation.

The Minister for Transport, Deputy Dempsey, has asked the Department to consult with the EU Commission on the options for facilitating the provision of air services to meet the connectivity requirements of the west of Ireland in a liberalised, competitive aviation market.