Luke Flanagan (Roscommon-South Leitrim, Independent)
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To ask the Minister for Transport, Tourism and Sport if he has examined the competitive impacts of the Shannon Airport support package on neighbouring airports such as Ireland West Knock and on the region it serves; his national aviation priorities; and if he will make a statement on the matter. [57537/12]

Alan Kelly (Tipperary North, Labour)
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In the first instance, there is not a support package in place for Shannon Airport. The Deputy will recall that the Minister for Finance announced in his recent budget speech that he will put in place measures to facilitate the construction of hangars and ancillary facilities that will be key to attracting additional aviation sector organisations. However, these are based on an appreciation of the contribution that aviation can make nationally. They are aimed at attracting investment to Ireland.  These measures will be available on a national basis to all airports that wish to avail of them, including Knock and Shannon airports.

The Deputy also refers to aviation priorities and, reflecting this Government's recognition of the importance of the sector, I can confirm that one of our priorities for 2013 is the development of a new civil aviation policy. This process was initiated at a conference earlier this month and will be pursued through 2013, leading to the adoption of a new policy in 2014. In that context, I expect the role of both State and regional airports to be fully explored.

The Deputy will be aware that the Government decided last month to proceed with the separation of Shannon Airport from the Dublin Airport Authority and merge it with a restructured Shannon Development to form a new integrated Shannon entity in public ownership. The order specifying 31 December 2012 as the date of separation of Shannon Airport from the DAA was executed last week following its approval by both Houses of the Oireachtas. The Government also decided to rationalise the tourism and enterprise support activities in the region by transferring Shannon Development’s functions in these areas to the relevant national agencies.

The Government was faced with two ailing companies in Shannon that are not realising their potential to make a contribution to the economy of the wider region.  We are restructuring State-owned assets to make better use of them as a catalyst for the development of sectoral opportunities centred on the airport. I expect that these decisions will give rise to some degree of increased competition among Irish airports, including Knock airport. However, the aim is to increase the overall number of passengers to and from Ireland through increased efficiencies and the attraction of new aviation business that can have a beneficial national impact. 

It should be noted that Knock airport and the other regional airports which are not owned by the State have been supported over the years under the regional airports programme, which is aimed at ensuring balanced regional development.  Under that programme, Knock airport has received around €40 million since 1993. This includes funding for the public service obligation, PSO, air services, which, although paid directly to the airlines, also support the airport.  More than €1 million is being provided this year to the airport, despite the difficult economic circumstances.

Luke Flanagan (Roscommon-South Leitrim, Independent)
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I thank the Minister of State for his answer. There are serious concerns about statements made in recent weeks, including a statement in the national media on 31 March. Only one meaning could be taken from the Minister, Deputy Varadkar's statement, namely, that the pesky airport at Knock would want to stop taking passengers from Shannon. The Minister stated:

If nothing was done for Shannon the airport stood in danger of being passed out by Knock airport in passenger numbers, despite a current gap of over 900,000 passengers. I think if the trends continue as they are it will happen because Shannon’s numbers are already down 20 per cent this year and Knock is still growing.

I would cheer on developments at Shannon Airport, but if that must be done at the expense of Knock airport, which is washing its face financially, it would not be good. A couple of weeks ago, Mr. Liam Scollan of Knock airport told a meeting of our transport committee that he had serious concerns about the quality and level of engagement with the Government. He stated:

We have met Minister Varadkar and his officials on numerous occasions, but our representations have not been afforded fair consideration [which is a fair claim]. In fact, the Minister is clearly on the record in both national and local media [as I have quoted] that Knock Airport was the problem for Shannon and that he intended to develop policies to rectify that.

Alan Kelly (Tipperary North, Labour)
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I thank the Deputy for his comments. He has spoken on this issue previously and he holds his opinion passionately. Knock airport is not under threat. It is a fine, successful airport, a fact that must be acknowledged. The Deputy's references to statements by my colleague, the Minister, should be taken in context. Those comments were more a reflection on Shannon's situation than on Knock's success. Shannon is a world renowned brand. As an airport, its achievements are known worldwide. However, its passenger numbers have dropped considerably, and it was in this context the Minister commented.

A change in policy in respect of Shannon Airport was necessary. For this reason, the Government has put together a plan that should have been put in place many years ago. I advocated for such a plan for many years. There is some associated risk, but the plan will be a success and it will not be a threat to Knock airport. I am sure that the airport will achieve even more success. Shannon Airport has successfully won a number of new flights from the US and Europe. These do not compete with Knock but complement the services available there.

Luke Flanagan (Roscommon-South Leitrim, Independent)
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Please ask the Minister to engage more. The relevant people feel he is not engaging. They are reasonable and good people.

Alan Kelly (Tipperary North, Labour)
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I will take that message to him.

Peter Mathews (Dublin South, Fine Gael)
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This morning, Sir Terry Wogan gave Shannon Airport a good boost on "The John Murray Show".

Luke Flanagan (Roscommon-South Leitrim, Independent)
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He is biased.

Michael Ring (Mayo, Fine Gael)
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He supported The Gathering.

Peter Mathews (Dublin South, Fine Gael)
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He lives in Limerick even though he supports Shannon and County Clare.