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Written Answers — Rail Network: Rail Network (26 Sep 2007)

Noel Dempsey: Construction contracts for the Kildare Route upgrade project and the works thereof are matters for Iarnród Éireann and I have no role in relation to them. I understand from Iarnród Éireann that 2 contracts have been placed and that work has commenced. My Department has allocated €45.5m to Iarnród Éireann to fund work on the project in 2007. The funding allocation to the project in...

Written Answers — Road Network: Road Network (26 Sep 2007)

Noel Dempsey: The Roads Act 2007 provides the necessary statutory basis to facilitate the implementation of free flow open road tolling (also known as "barrier-free" tolling) on toll-based national roads.

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: I move: That Dáil Éireann: —shares the Government's deep disappointment at the Aer Lingus decision to end the Shannon-London Heathrow service; —agrees with Government that this decision is contrary to Government regional and aviation policy; —recognises the importance of the international connectivity of Shannon airport as a means of facilitating the wider region to develop further...

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: It was evident in the first week of this controversy, from the statements made publicly, that Aer Lingus was set on a course from which it would not deviate. That is certainly the response I got from the company. I investigated the possibility of the State acquiring Heathrow slots to replace the Aer Lingus service. I was informed that this was not legally possible. It is not open to the...

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: The question has been raised more than once as to why the Government, as a shareholder, is not intervening directly in the running of Aer Lingus and either calling for or supporting the call for an EGM. Neither I nor the Government contemplated supporting a call for an EGM from Aer Lingus's main competitor, to have this decision reversed.

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: It was quite clear from the outset that the attempt to call an EGM had more to do with commercial rivalry than a concern for Shannon or the mid-west.

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: I am delighted to hear the Labour Party being so supportive of Ryanair for a change.

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: Even the ESOT refused to contemplate supporting such a move. I accept, arising from that decision, that it is legitimate to raise two questions: first, why does the Government retain its 25% stake if it is not prepared to use it to "protect" these slots and, second, why did the Government privatise Aer Lingus and was privatisation wrong? These are legitimate questions. I will take each in...

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: Regarding the second question on the IPO, it is nonsense to suggest that the Government should not have privatised the company. If that decision was not taken by Government, I have no doubt that in two or three years this House would be debating the survival of Aer Lingus in a globalised and increasingly competitive aviation market.

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: The fundamental purpose for which the IPO was undertaken was to create a commercially independent Aer Lingus with access to the capital markets, which would serve the Irish economy more effectively than an Aer Lingus in ongoing State ownership and subject to the constraints of state aid rules.

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: We see the positive results of this decision with new services being developed. In particular, there has been a major expansion of transatlantic services and during the coming winter season, the company will serve seven cities in the US, compared with four previously. The IPO also made it possible to raise new equity to support the future payment of pension increases, which the Labour Party...

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: ——should be examined.

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: To do this, a cross-departmental team of senior officials was tasked with assessing the actual implications of the decision in terms of connectivity and to make recommendations in this wider context. The senior officials group looked at the implications of the decision from a connectivity, business and tourism point of view. The senior officials group concluded that the withdrawal of the...

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: The negative impact from a connectivity point of view almost completely relates to one-stop connectivity and flight duration to key destinations in Asia, the Middle East, Africa and Australia, as such destinations must generally be accessed through a major hub. This has obvious adverse effects in terms of business travellers and other users from the Shannon region. However, the senior...

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: Tourism Ireland, at the request of the Department of Arts, Sport and Tourism, prepared an analysis of air capacity as an input to the senior officials group. It noted that the withdrawal of the Aer Lingus Heathrow service, together with the reduction in direct services from North America to Shannon due to "Open Skies", could have an adverse impact on the profile of overseas visitors to the...

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: ——to the effect that this Government has no interest in and no commitment to the mid-west or the west. That is a blatant lie.

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: As Minister for the Environment, Heritage and Local Government, I initiated the national spatial strategy with the full support of the then Government——

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: ——to ensure the benefits of economic prosperity were delivered to every corner of Ireland.

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: The Deputy is completely out of order with his point of order. I did not level an accusation——

Shannon Airport: Motion (27 Sep 2007)

Noel Dempsey: I suggest the Deputy read Standing Orders and the customs——

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