Dáil debates

Thursday, 15 October 2020

Saincheisteanna Tráthúla - Topical Issue Debate

Aviation Industry

3:40 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Ceann Comhairle; Kildare South, Ceann Comhairle)
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We have given a double period to the first issue, which is the decision by Ryanair to close its Cork and Shannon bases. We start with Deputy O'Rourke and each Deputy has one minute.

Darren O'Rourke (Meath East, Sinn Fein)
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This is a serious issue and I will approach it from an overarching point of view in relation to aviation. Testing has been an absolute dog's dinner and the State needs a plan for aviation for many reasons, including connectivity, regional balance, employment and climate. There are huge groups of workers and areas affected. The airlines themselves, maintenance and repair, leasing and tourism are all dependent on our aviation sector and our connectivity. The sector has been failed by this Government at the July stimulus and at budget 2021. I call on the Minister for Transport, Deputy Eamon Ryan, to get testing and tracing right at our airports immediately and to include the aviation sector in a meaningful way in the national economic plan.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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The Ryanair announcement that it is to reduce its winter schedule at Shannon Airport is yet another in the long list of blows to the mid-west economy. It will affect 155 staff at Shannon and Cork airports. The Department of Employment Affairs and Social Protection must ensure these workers are assisted promptly so they are not waiting weeks if they have to sign on as a result of the announcement. As the Minister is aware, the mid-west region and my constituency of Limerick City are hugely dependent economically on the connectivity afforded by Shannon Airport. Over 55,000 jobs are dependent on a viable airport in the region. While the Ryanair decision is a blow, it is not unpredicted. Dr. Catriona Cahill, chief economist with Limerick Chamber, said on "Morning Ireland" this morning that the Government must intervene now to provide supports and guidance. The Government has committed €5 million to the airport. Does the Minister not realise it is far too little and far too late? The ship sailed months ago. We need proactive and prompt action from the Government, but instead we are getting a reactive response that merely applies a plaster to a gaping wound.

Photo of Pat BuckleyPat Buckley (Cork East, Sinn Fein)
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Cork Airport directly and indirectly supports 12,000 jobs in the region, generated over €900 million for the Irish economy in 2019 and is one of the key drivers for Cork. Cork Airport is Ireland's second busiest and best connected international airport, which resulted in it being the fastest growing airport in Ireland in 2019. Why has this Government not stepped in before the situation was left to fester? What is the Government's plan to rescue Cork Airport, its employees and Cork's economy?

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Today's news from Ryanair that it intends to close its bases at Shannon and Cork is deeply disappointing. It is a huge blow for workers, for the airports themselves and for the mid-west and southern regions. It is a massive blow for business and for tourism connectivity. The Government has signed up to the EU traffic light system for a safe return to air travel but we must now formally adopt this policy and, more importantly, implement it in full. It is abundantly clear we need to introduce pre-departure testing and rapid testing at our airports and ports. After all, we are an island nation and 140,000 people work in the aviation sector. Therefore, we must follow the lead of other European countries and introduce a pre-departure testing regime. Representatives of Shannon Airport and the Dublin Airport Authority, DAA, told the Joint Committee on Transport and Communications Networks last week that they are in a position to bring about these testing facilities at our airports and it will be done with a private contractor.

Thomas Gould (Cork North Central, Sinn Fein)
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Today's announcement by Ryanair that it will stop the service to Cork is devastating news for the workers, Cork Airport and the wider region. Before Covid-19, Cork Airport was Ireland's fastest growing airport and in the face of Brexit and the Covid-19 crisis, now is the time to build Cork Airport up and position Cork as a counterbalance to Dublin. Without an airport, this is impossible so we need the Minister's support. The spin about this week's budget was focused on pro-jobs and pro-business but today we heard that 70 people directly employed by Ryanair, 1,900 directly employed by the airport and over 10,000 employed in the wider area will be affected by this closure. It is devastating news. What will the Government do to step in and support Cork and Shannon airports?

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Ceann Comhairle; Kildare South, Ceann Comhairle)
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I call Deputy O'Donnell. Níl sé anseo.

Photo of Michael McNamaraMichael McNamara (Clare, Independent)
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Can I speak instead, very briefly?

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Ceann Comhairle; Kildare South, Ceann Comhairle)
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Go on.

Photo of Michael McNamaraMichael McNamara (Clare, Independent)
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The question I have relates to testing, which is obviously key. So far we have relied on polymerase chain reaction, PCR, testing. It is the gold standard but the WHO accepts antigen testing can be used when PCR testing cannot be used. Will the Government look at rapid testing and will that be antigen testing or PCR testing? In any event, will the Minister outline what steps are being taken to ensure there is a protocol agreed across the EU on testing so Irish passengers who have been tested are accepted in the country they arrive in?

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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Today's news came as a devastating blow, first, to the workers and their families, and I hope something can be done even now to salvage these jobs, and, second, to Cork Airport as a whole. There are over 10,000 people whose employment relies either directly or indirectly on it and I have been contacted by many of those people, including people working as baggage handlers, for shops and for different businesses connected to the airport. They are very worried.

For the region as a whole, if we are serious about Cork being the fastest growing city in the State and the island over the next 20 or 30 years, we need to have a viable international airport with serious international connectivity. There are serious concerns for the future and the connectivity of the airport off the back of this. It is clear the testing regime is a big problem here. We have not been able to get a handle on it. A lot of time was lost over the summer and we need to get this right now and to ensure these airports get back on an even keel as soon as possible because they are crucial for regional development and for all the jobs that rely upon them.

Violet Wynne (Clare, Sinn Fein)
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The Minister is very much aware of the struggles being faced by Shannon Airport and the impact on the wider region in recent months. I have raised the issue with him on numerous occasions but every time I come back into this House on this matter it is with further bad news. This is seen as being directly down to the apathy from the Minister and his Department. On Tuesday, there was a commitment to additional capital funding for Shannon and Cork airports and a commitment to sign up to the EU traffic light system and here we are, just 48 hours later, waking up to this bad news. We cannot continue to allow our international airport in Shannon to be failed time and again. We need action from the Government to address the issues in Shannon and ensure we have an airport on the other side of the pandemic and we need such action now. The workers and staff at Shannon Airport need certainty and assurances for there to be any kind of confidence at this time.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Ceann Comhairle; Kildare South, Ceann Comhairle)
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I call Deputy O'Donnell. I am sorry we missed him.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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I thank the Ceann Comhairle for being so gracious to allow me in and I thank my colleague for stepping in in my absence.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Ceann Comhairle; Kildare South, Ceann Comhairle)
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It was very good of him, all right.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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This is an issue we are all united on. I will set out what I want from the Minister. First, in terms of the Limerick and Shannon region, Shannon Airport is vital to connectivity. We accept that we are going through a pandemic. When will the Government bring in the new traffic light system that has been passed by the European Commission? We want to see that implemented in full. When will it be implemented? Second, testing is coming front and centre in terms of the way airlines and airports operate. Where do we stand on a proper rapid testing system for airports in Ireland? We all accept we are in a pandemic. However, the airline business employs 140,000 people. We are an island nation and we need connectivity.

We must think outside the box. I will conclude by asking a question about the National Public Health Emergency Team, NPHET, which does fantastic work. Have we now reached the point where its remit needs to be broadened and do we need to bring in experts in testing? The Minister might reply to those matters.

3:50 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Ceann Comhairle; Kildare South, Ceann Comhairle)
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I thank the Minister for being here to respond to this important matter.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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It is indeed a critical and serious issue not only for Cork and Limerick but the whole region and country. We need international connectivity and our aviation sector so I thank the Deputies for raising the issue.

Ryanair's decision to close its bases at Cork and Shannon airports for the winter is very disappointing. Unfortunately, the closure of these bases is part of a wider decision by Ryanair to cut capacity on its flights right across Europe. We should note today that Ryanair is also closing its Toulouse base for the winter and making significant base aircraft cuts in Belgium, Germany, Spain, Portugal and Vienna. Indeed, given the low forward booking rates to the end of this year being experienced by airlines right across Europe, this development is not entirely unexpected. According to the latest Eurocontrol data, these reductions in services are consistent with trends across Europe as we head into the winter season. In the circumstances, most airlines are now reducing capacity and Ryanair is no different, although it remains the busiest carrier.

This is, of course, a commercial decision for Ryanair and it is understood that the airline will continue to serve Cork and Shannon airports, although with fewer destinations served and reduced frequencies. The Government recognises that today's news will be a blow to staff at Cork and Shannon airports, Ryanair staff and other affected workers, and the wider regions involved. Cork and Shannon airports have excellent management teams in place and are doing all that is possible in difficult circumstances. The efforts made by staff and management to date are acknowledged and fully appreciated by the Government.

The Government is fully alert to the devastating impact that the Covid-19 pandemic has had on international travel and appreciates and acknowledges the important role of Ryanair and Shannon and Cork airports to the economies of the mid-west and south regions, respectively. While it is often said, it is worth repeating that as an island nation Ireland is particularly dependent on air connectivity, both socially and economically. Aviation plays a critical role in our economy. Cork and Shannon airports are key players in delivering high-quality international connectivity in their respective regions. The Government fully recognises this and is committed to ensuring that both airports are well positioned to aid our recovery and continue to play their parts in maintaining Ireland's core strategic connectivity into the future.

Unfortunately, it is expected that it will be some time before it is possible to permit a large-scale return to air travel. The Government is committed to ensuring appropriate supports are in place to allow the aviation sector to maintain the necessary core capability to maintain strategic connectivity and respond quickly when circumstances allow.

Budget 2021 included a provision of €10 million to help to address the challenges facing Cork and Shannon airports. This is in addition to the €6.1 million in emergency funding provided to Shannon Airport in June this year to complete a safety and security project.

Airports generally, as well as the airlines, will continue to benefit from the economy-wide support measures that the Government put in place at the beginning of the pandemic for companies of all sizes, including those in the aviation sector. Companies can avail of grants, low-cost loans, waivers of commercial rates and deferred tax liabilities. Larger companies, including those in the aviation sector, can apply for liquidity support through the Ireland Strategic Investment Fund pandemic stabilisation and recovery fund. Ryanair and airports around the country, including those at Cork and Shannon, have been able to avail of some of those measures, in particular the Covid-19 wage subsidy scheme, the Covid-19 unemployment payment, the commercial rates waiver and deferred tax liabilities.

The Government has agreed to adopt the EU traffic light system for international travel and a decision on how we are going to implement this new system is expected to be taken at a Cabinet meeting next Tuesday. As it has in the past, the Government will seek to ensure an appropriate balance between allowing travel and protecting public health. The goal is to give airlines and the travelling public certainty as to what they need to do to be able to travel.

While the decision by Ryanair to close its bases at Cork and Shannon airports for the winter is a commercial decision, it is hoped that the measures already put in place by the Government, from which Ryanair has benefited, and the further measures being considered as part of our response to the coronavirus pandemic will help all players in the aviation sector to return to growth in the not too distant future.

Darren O'Rourke (Meath East, Sinn Fein)
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The Minister has not addressed the issue of testing. We have for months been listening to a debate about what are false negative and false positive Covid-19 tests and the performance of different diagnostic assays. There are international examples. The DAA is ready to go with 15,000 tests a day. What are the Minister and the Government doing in that regard?

The game has changed around aviation. There is an opportunity for the State to step in and deliver a strategic future for the sector which would make a significant difference to tourism, connectivity and the climate. I appeal to the Minister to make that leap.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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In response to my call in this House a number of weeks ago for Shannon Airport to return to the control of the DAA, the Minister said that would not solve the underlying strategic issues at the airport. With almost 90% of routes going to Dublin Airport, would he not accept that Shannon Airport, as a stand-alone airport, is one of those strategic issues that needs to be addressed?

The return of Shannon Airport to the DAA umbrella needs to happen and while it will not be a panacea for all the airport's problems, and nobody has ever said that, it would be a first step in addressing some of the issues at the airport. The wrong political decision was taken in 2012 and I call again on the Minister to reverse the decision. The ball is in his court and it is time to get into the game on this issue.

Photo of Pat BuckleyPat Buckley (Cork East, Sinn Fein)
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I thank the Minister for replying, though not for the content of the answer. I welcome the traffic light system. In my opening contribution, I did not mention any airline but did mention Cork Airport three times. It has 12,000 employees and Cork's economy is worth €900 million. The Minister mentioned Cork Airport in his reply but I am disappointed that he did not address those other issues. What do we go back and tell the 12,000 people affected about what will happen to their jobs next week? What do we do with Cork city and county councils? Where are they going to find the €900 million they have lost this year? What will the Government do to replace that money?

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Our airports are economic drivers. Shannon Airport sustains 46,000 jobs, directly and indirectly. It is more than just an airport. We need to rebuild confidence in air travel, as we are doing by signing up to the EU traffic light system. We need to implement that system in full. I want to hear what the Minister has to say about introducing a testing system at Shannon Airport and our other airports because until we do that, we will not rebuild that confidence.

Thomas Gould (Cork North Central, Sinn Fein)
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I asked what the Minister is going to do to keep Cork Airport open and ensure its connectivity. The airport is vital for the region and the economies of Cork and the wider region. Will the Minister and the Government consider measures to support Cork and Shannon airports? As my colleagues have also asked, will the State now step in to support the airports and regions? Without State support, we will be left in need and in dire straits.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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Has the Minister sought a meeting with Ryanair and Aer Lingus? If not, when will he do so? I welcome the fact that the Minister will bring in the European traffic light system. When will it be implemented? Will the Minister be looking at providing State support for strategic routes? There is no Aer Lingus route from Shannon to Heathrow at the moment. To reiterate, has the Minister met representatives of Ryanair and Aer Lingus? If not, when will he do so? Will he put in place State supports for strategic routes?

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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Much of the Minister's reply was not incorrect but it largely amounted to a statement of regret for the situation we are in and an acknowledgement that things are bad in aviation. It seemed as if the Minister was asking, "What can we do?". That is not good enough. An awful lot of jobs are relying on the industry. Entire regions look to these airports as crucial to their futures.

Aviation is not like other businesses. We are not talking about a factory in Cork or Shannon that might be difficult to relocate. Once those aeroplanes are gone, there is no guarantee that they will ever come back to Cork or Shannon. There is no guarantee that these routes will ever be based out of these airports. We need to hear a vision from the Minister. We need a vision for the future of aviation and testing is at the heart of it.

Violet Wynne (Clare, Sinn Fein)
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Today's announcement will affect approximately 155 staff in Shannon specifically, and will have far-reaching implications for approximately another 55,000 jobs in the region.

The enormity of the situation calls for intervention.

I have specific questions and if the Minister does not respond now I ask him to respond in writing. Can he give us clarity today on the review of Shannon Group? He said the airports would be well positioned. Can he elaborate on that? Can he commit here and now that he will do all in his power to ensure that Shannon Airport is saved?

4:00 pm

Photo of Michael McNamaraMichael McNamara (Clare, Independent)
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Will the Minister give a concrete reply on testing and the development of a protocol that is respected across Europe so that passengers can travel? If antigen testing is not used, what type of testing will be used?

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I ask for the latitude of the Ceann Comhairle because there are a significant-----

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Ceann Comhairle; Kildare South, Ceann Comhairle)
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I have given Deputy McNamara great latitude all day. You might as well go on.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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Deputies O'Rourke, McNamara, Carey and others asked about testing. It is an important part of the solution. It is what we need to do and I hope we get agreement in Cabinet next week. Agreement was reached on Tuesday in the European General Affairs Council on the European approach. As we discussed at the committee last week, it left it to national governments to decide what approach they would take.

I will seek support from the Government for the introduction of a testing regime which will allow passengers coming into this country to waive the restriction of movements rules that apply at the current time. Currently people flying in from countries on the red or amber list are subject to a two-week restriction of movements. That is a real impediment and difficulty for a lot of the airlines and others, including people travelling. Having a testing regime will address a lot of those difficulties and will, it is to be hoped, give people confidence to be able to fly and know it is safe.

In respect of the debate here with the public health authorities, I have said this will give us better public health outcomes. Currently, approximately 15,000 people a day are travelling in and out of our airports. We are supposedly monitoring their restriction of movements, but it is not possible to do that. Therefore, we do not have as much control in the current system as we would have if we had a proper testing system.

I would like to see a range of different testing systems. To be honest, we will have to be cognisant of the WHO, ECDC and the European Union, which is working on this as we speak, in terms of which testing systems will be validated. Our intention is to introduce a similar validation system to that in other countries which will allow us to achieve better public health outcomes so passengers do not have to restrict their movements for two weeks on arrival in Ireland.

In answer to Deputy O'Rourke, testing could be done at the airports or in other locations in advance of people flying into Ireland. The current PCR system used in Germany, for example, allows a test to be carried out 72 hours in advance of travelling and has a certification system which allows it to accept passengers into the country.

As Deputies have said, the DAA has done significant work in that regard to try to make sure it would have the capacity for testing in a way that would not impede or affect the national capacity for testing for coronavirus. This is a screening rather than a diagnostic system. There are different testing regimes.

In regard to Deputy Quinlivan, the issue of whether Shannon returns to the DAA is a separate issue to the immediate problem we have in respect of Ryanair in Shannon and Cork. The Seanad debated the issue and our reply to that is not ruling out certain measures. There are difficulties. Such a move will not address the strategic issues we have to address in Shannon. It is not something the Government is saying "No" to explicitly. Rather, it is separate to the issue we are facing today.

I agree with Deputy Buckley that the airport is important for the region. The reason for concern is because this decision affects people directly involved in the industry, tourism and connected industries, such as the industrial estates around the airport, and the possible impact on foreign direct investment in the future. It is a critical issue for the Government and all concerned because of the implications for Cork and Shannon.

Deputy Gould referred to keeping Cork open. Cork Airport will stay open. There will still be Ryanair flights in and out of the airport. The number of flights will be a fraction of the previous number. The pandemic is causing the current difficulty. Even if all flights were open to all destinations, over 80% of the journeys that typically come into the country at this time of year would, if they were happening, come from countries which are currently red listed because of the high number of coronavirus cases. That is one of the fundamental problems in terms of restricting people from travelling. We need a testing system to overcome that difficulty. Cork Airport is remaining open.

To go back to what Deputy Ó Laoghaire said, I hope it is not too late. There may be a possibility that if we get a system in place some confidence will return. One would imagine that would happen within the next month or two. It will not be easy because we are at a high level of alert in terms of coronavirus, not just here but across Europe. We need a six to nine month plan to try to create the conditions which can see the return of flights to Cork Airport.

I will write to Deputy Wynne directly, as she requested, in terms of the review of Shannon Group. The same issue affects it. The Shannon industrial estate around the airport is very much connected to the aviation sector. The aviation industry is a large part of that industrial base in that area. Shannon faces a real challenge.

Deputy O'Donnell mentioned other supports. We are considering other supports. I hope we can-----

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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What about strategic routes?

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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We have to be careful in terms of the nature of the supports. We do not want to introduce supports that would contravene European law or support various companies in the industry. They are the sort of mechanisms we are considering. That will need to be done in conjunction with a testing regime. I will be honest. The testing issue is critical because in the absence of that the passenger numbers would stay very low and any supports would be marginal as a result. We will seek to introduce a more holistic package next week.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Ceann Comhairle; Kildare South, Ceann Comhairle)
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I do not think I will be able to impose any time limits-----

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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Apologies.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Ceann Comhairle; Kildare South, Ceann Comhairle)
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-----on the next two Deputies that ask questions.