Michael Finucane (Fine Gael)

I welcome the Minister of State. I have studied the contents of the Bill. I would like to know about the future not only of Aer Lingus but of some of our airports which are intertwined with the success of Aer Lingus. The Minister of State said Aer Lingus was involved in opening up nine new European routes, but will he indicate in his reply whether any of those routes are to Shannon Airport?

There is a cloud hanging over the Irish aviation sector at present not concerning Aer Lingus so much as the situation that is evolving at Aer Rianta and what the Minister's intentions are with regard to that company. We know that one of his intentions is to break it up into three different companies for Shannon, Cork and Dublin Airports. In that case, Shannon would operate as a separate entity. Limerick Chamber of Commerce and many other organisations accept this move. The boards were appointed months ago, but they are currently operating in a vacuum so what can they achieve? In proposing to dismantle Aer Rianta, the Minister has not considered a business plan under which the airports could operate with new directors. That is important in the context of Shannon.

I wish Aer Lingus well and compliment it on its recent success in generating a profit. However, what signal is being sent to the Shannon region, and to Aer Rianta workers, by the recent news that the company is seeking a further 103 voluntary redundancies at Shannon? The ground handling services, which are currently administered by Aer Lingus, are to be removed and, in addition, 29 cabin crew have been given six weeks to move to Dublin or lose their jobs. There are signs of depression in the area because of the situation that is evolving at Aer Lingus and the uncertainty over Aer Rianta in Shannon. It is time to create some certainty in this regard.

I am not sure what the commitment of Aer Lingus is to Shannon, but I know that the main objective of the Bill is to prepare Aer Lingus for privatisation. Some of our regional airports could be sucked into the slipstream created by such privatisation. I wonder if that is already happening at Shannon given the voluntary redundancies that may become compulsory if they are not taken up. If the Minister sheds such jobs, it will have a knock-on effect on other operations at the airport.

Aer Rianta should show us the business plan for Shannon Airport or at least give it to the new board of directors, so that the airport can operate debt-free. An injection of finance will be required so that the airport can be marketed to create new opportunities. The Leader of the House mentioned one company that she said should not be named, although I am sure she was referring to Ryanair. Some time ago, Ryanair left Shannon and went to Farranfore. Good luck to Farranfore, which is a private airport. Ryanair left Shannon because of what could be regarded as very moderate landing charges, which were introduced by Aer Rianta. Passengers using Farranfore airport will pay those charges in another way, however, because they will have to pay €6 each way to travel from that airport. That money goes to the airport's private funding. It was a contradiction and a deception for Ryanair to say it was leaving Shannon because of the increased charges, which were moderate, and then increase charges at Farranfore because it is a private airport. Ryanair took that business, which was going to Hahn near Frankfurt in Germany, away from Shannon. It was a big loss to Shannon at the time because it had created so many bednights for the local hotel industry from German tourists. Good luck to Kerry in whose direction the business has moved.

Will the Minister of State confirm that Aer Lingus is due to announce four extra flights per week to Chicago? My information is that may be the case. While those four extra flights may be announced, the airline has reduced its weekly flights to Boston from seven to five. It has been proven, however, that there is a market for flights to other airports — Philadelphia, in particular — if we can get a real commitment to provide such links. We know what is happening in the international aviation business, as well as the effect of the end of the Shannon stopover, with passengers stopping at Dublin first before flying on to Shannon. There may be more such changes in future. The Minister may say that Shannon will have to change and adapt, but business people in the mid-west region are frustrated. Prestige employers such as Dell are operating in the area and they should be able to avail of the appropriate infrastructure and fly out of Shannon. The Minister of State knows the difficulty involved in getting connecting flights when one flies from Shannon to Dublin. One imagines that such connections would exist within the country. In the past, Aer Arann attempted to provided such a service but it later pulled out of Shannon.

There is an air of uncertainty hanging over Shannon at present, to which Aer Lingus has contributed. That uncertainty will have a domino effect on other employment unless something serious is done about it. It is all very fine preparing for an ESOP and other aspects of privatising Aer Lingus, but if it will impact on airports like Shannon, I wonder if it is such a good idea.

There is another argument going on with regard to the Government's decentralisation policy, which involves getting civil servants to move out of Dublin. It is proposed to move the Department of Enterprise, Trade and Employment to Shannon, which is fine, but while the Government is decentralising, Aer Lingus will be pulling the plug on 103 jobs at Shannon Airport, and other jobs may also be affected. There is a contradiction, therefore, when one talks about decentralisation.

One may say that Aer Lingus has to make an operating profit but I wonder whether the serious commitment to expand Dublin Airport will be to the detriment of Shannon. Is it not contradictory to say that what Aer Rianta is doing will be to the long-term benefit of Shannon? Much of the business will be whisked away as a result and it will be difficult to find alternative businesses. The board of directors that was appointed months ago for the development of Shannon should at least be given some idea of the Minister's future intentions for the airport.

I can remember sea-planes coming into Foynes, where I come from, up to the late 1940s. Aer Lingus started originally from Shannon, which was opened in the mid-1940s. There is a history of aviation in the area. IBEC, which represents business interests in the mid-west region, published a document today pointing out the barriers to success in the Shannon area. Senator Dooley is aware of the current infrastructural deficits there, which will be rectified in future. They include the Ennis bypass, which is important for development, and a tunnel under the river Shannon to remove the traffic logjam from Limerick city to the airport.

There have been dramatic improvements in the roads leading to Shannon and such infrastructural developments are necessary, including the development of the Limerick to Ennis railway line. While these developments can complement Shannon's status, there is no point providing such infrastructure if the airport's basic business activities are destined to decline. I am concerned about the long-term viability of Shannon. If Aer Lingus is to remove 103 jobs in the cargo handling sector, I hope some other company, such as Servisair, will replace them. Without such components at the airport, one cannot attract foreign business, including other airlines. The uncertainty surrounding the future of Shannon Airport must be lifted and the Aer Rianta controversy, which has dragged on for too long, must be decided. We need action on the airport. The new committee must meet and develop a business plan and avail of marketing expertise to secure the future of Shannon. The airport is important not only to Shannon but also to the entire mid-west region.

I am concerned about this region and I hope the Minister of state will outline Aer Lingus's plans for Shannon Airport, which has been vitally important for a long time, when he replies.