Seanad debates

Thursday, 2 December 2004

Aer Lingus: Statements (Resumed).

 

1:00 pm

Michael Finucane (Fine Gael)

I wish to share my time with Senator Quinn.

First, I ask the Minister to make a clear decision on Aer Lingus and aviation policy. His predecessor, the Minister, Deputy Brennan, showed a sense of dynamism in trying to get movement in certain areas, including the new terminal at Dublin Airport. Anyone who goes on a continental holiday during the summer will witness absolute chaos at the airport. Ministers may be used to by-passing the normal terminal but, given the congestion that exists, the Minister should stop dithering and make a decision on the issue for the benefit of consumers who use Dublin Airport. Many proposals have been put forward because the debate has been going on for two years. The Minister should make a quick decision on the matter.

It is not so long since we debated in this House the break up of Aer Rianta. If Shannon continued as it was, it would not be a viable entity. The new airport authority stated that it must encourage a low cost model in order to make Shannon sustainable. It is worth bearing in mind that Shannon is losing approximately €5 million a year. When the Minister was dismantling the different airport authorities, he stated that only voluntary redundancies would be involved. Shannon has been identified as having approximately 470 staff and 100 seasonal workers. The new airport authority will have to grapple with this issue because not only is it important for airlines such as Ryanair and other low cost airlines who may use Shannon in the future, it is important for the Shannon entity to be a viable proposition. The resources within Shannon must be examined.

The recent decision by Ryanair to create 14 new routes and operate to different holiday destinations, and to have four aircraft based at Shannon, is extremely important. It is not just important for Shannon but for the west of Ireland, south of Ireland and the mid-west. It could be the gateway for tremendous tourism potential for these areas, which is why it was an important decision.

The Minister might have a discussion with the National Roads Authority vis-À-vis the Limerick-Galway route from Ennis to Galway. This is a deplorable road on a national primary route. Even though we are progressing, we need other components to fit into the jigsaw. It is important to have a decent road infrastructure. If we harness the potential of Shannon and attract low cost carriers, the beneficiaries will be the tourism outlets throughout the region. The road from Ennis to Galway is very important. The Ennis bypass is currently going ahead and I hope it is completed without delay.

Aer Lingus has been debated at length and it is important for the Government to make a decision and remove the uncertainty that exists. I will not elaborate on the virtues of the chief executives and so on because I heard other speakers make contributions in that regard. It must be said that the current financial status of Aer Lingus is very credible but it does not mean that people can sit on their laurels. We must examine the future of Shannon and what happens in regard to the bilateral agreement.

Senator O'Toole asked if the EU could examine whether Ryanair received a more favourable concession. Shannon Airport Authority made it quite clear that if other users come in the same financial arrangements will be made available to them. There is no problem in regard to the European Union. I decided to use most of my time to talk about Shannon because what has happened there is very beneficial. I welcome the direction the airport is taking.

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