Kathleen O'Meara (Labour)

I thank the Minister of State for taking this important matter, the proposal, as reported in recent times, by the Tánaiste and Minister for Enterprise, Trade and Employment and by the Government — it also involves the Minister for Transport — to transfer the most significant part of the assets of Shannon Development to a new Shannon Airport authority to rid it of its debt of €5 million in the context of the development of an independent airport authority at Shannon.

While the people of the region want to see the airport develop, there is great concern, particularly among the business community in the Shannon area, that this proposal is a short-term measure and very much a quick fix solution to the issue of the debt a new authority would bear in its early life. The impact, particularly economically, of this proposal on the region would be devastating. In that regard, it is vital that the Government ensures that this does not happen.

I received correspondence from Limerick Chamber of Commerce and I have read comments in the media from players such as Fitzpatricks Hotel in Bunratty, Dell, one of the biggest employers in the region, and other significant figures from the University of Limerick who say this proposal would have severe economic consequences and is simply not the way forward. The impact of it would be to strip Shannon Development of its assets, particularly in the Shannon free zone. The Minister of State is aware that the creation of a free zone around the airport to attract industry was an innovative development. The project has been very successful. Shannon Development has had significant success in attracting industry to the region. I stress Shannon Development's role in supporting and nurturing new industry in the region.

The role of the airport authority is to act as such. An airport authority cannot be a development authority. It cannot play the role currently played by Shannon Development, especially in developing relationships with employers.

It is worth noting that 7,300 people are employed in the Shannon free zone. Some 120 companies are located in the zone, including Intel, Lufthansa Technik, Halifax, Tyco Raychem, DeBeers and Thompson Financial. The zone has the largest cluster of north American investment in Ireland. The proposal under discussion puts the investment, the jobs and future development in jeopardy.

As a public representative in the area, I am in regular contact with Shannon Development. I am briefed regularly on the initiatives being taken by the company and on its future. Shannon Development is examining the development around the airport. It is considering the introduction to the area around the airport of a new type of industry. It is studying the possibility of developing distribution networks at the airport, using the attractive facility that is in place.

Shannon Development is also a tourism body. It is responsible for the development and encouragement of tourism in the area. If it is stripped of its assets, it will not be able to carry out its tourism functions to the extent that it does at present. The tourism industry in the Shannon area, which has already been hit by the potential weakness of Shannon Airport — I refer to the American market — would not receive the significant level of support it receives at present. There would be certain implications in that regard. The proposal under discussion cannot work. If it is pursued, it will have negative economic consequences not only for the Shannon area, but also for the entire mid-west region.