Michael Ahern (Cork East, Fianna Fail)

I thank Senator O'Meara for raising this matter. The Tánaiste, who is engaged in Presidency duties this evening, regrets that she cannot be here to take part in the debate on this important issue.

I wish to place this debate in its proper context, which will underline the commitment of the Government to the mid-west region, particularly Shannon. The House is aware that a numberof recent developments, including the Government's decisions on decentralisation and the need for an autonomous airport at Shannon, will impact on the region and the State agencies located there.

The first of the developments was the decision announced by my colleague, the Minister for Finance, in his Budget Statement of December 2003 to decentralise the headquarters of Enterprise Ireland to Shannon. Some 300 of the agency's Dublin-based staff will be relocated at Shannon and 100 staff from the Irish Aviation Authority will also transfer there. The decentralisation programme envisages the transfer of 1,210 staff from Departments and State agencies in Dublin to the mid-west region. This hardly indicates that the Government has lessened its commitment to the region's economic development.

The Tánaiste has contributed to the process by agreeing to the transfer to the region of 300 staff from Enterprise Ireland and 250 staff from FÁS. The transfer of the agencies, both of which are under her Department's remit, provides firm evidence of her commitment.

Shannon Development performs a range of functions for Enterprise Ireland on a delegated authority basis. In light of the decentralisation decision, it has been decided that the functions will revert to Enterprise Ireland. It is an entirely practical development as it would make little sense for two agencies in the same location to perform the same functions. The decision, which is fully supported by the board of Shannon Development, will result in the transfer of the Shannon Development staff engaged in the functions to Enterprise Ireland.

It has been agreed that the management of Shannon town should be transferred from Shannon Development and vested in Clare County Council. The decision has been made on practical grounds and Shannon Development and Clare County Council are in agreement with it.

A further development of considerable importance to the region is the decision, which is supported by the board of Shannon Development, to establish an independent Shannon airport authority. The promulgation of legislation for the new authority is a matter for the Minister for Transport, Deputy Brennan. The Tánaiste considers that ensuring the independence and viability of Shannon Airport is absolutely critical to the future development of the mid-west region. All commentators agree that the task of maintaining and developing the vibrancy of the region and guaranteeing its continued attractiveness as a tourist destination and a location for investment would be made considerably more difficult if the airport were not there.

One of the options being considered by the Government is the transfer of the Shannon free zone's assets to the new airport authority. While no decision has been taken, the transfer of the assets would not involve a change in the status of the zone or its attractiveness as an investment location. The question that is ultimately at issue is the management of the zone. In the context of the establishment of the new airport authority, the Tánaiste wants to ensure that the best use is made of the State asset to benefit the region as a whole.

In the light of the changed circumstances, the Tánaiste met the chairman and some members of the board of Shannon Development in March. She subsequently met the chairman and chief executive of the company at the end of April to explain and expand on the matters under consideration. She asked the board to bring forward detailed proposals about the role Shannon Development can play in the region's future development. This discussion is ongoing.

The Tánaiste is keen to stress that she is committed to the future of Shannon and the mid-west region as a whole. The Government's concern is to ensure that it puts in place the most sensible and efficient structures and manages the region's most valuable and strategic assets to optimise their benefit for the entire region.