Timmy Dooley (Fianna Fail)

The Senator is usually on his feet giving out about proposed cuts so I wonder from where the money will come. Perhaps he has some rare ideas that we might hear in the debate on the Finance Bill.

There were many calls in the House to discuss urban and rural transport initiatives and it was decided to split them between two debates. The debate dealing with Dublin was helpful and set out clear policies on the metro and other areas. I am sure we will see those issues delivered in time.

Today's debate is a wider examination of Government policy on transport initiatives outside Dublin. People often get caught up in the belief that congestion is only a problem in Dublin and on the east coast. That is not the case. There are bottlenecks in many provincial towns and it is incumbent on the Government to alleviate them. The roll out of the road investment programme as detailed in the national development plan will achieve that end. The Minister has already given details of measures on bypasses and new roads that have been put in place and that are coming on stream all the time. People living in these areas have just as much right as people in Dublin to quality infrastructure and to be able to go about their business in an orderly way.

We only hear from lobby groups based on the east coast. They tend to bring the debate on transport deficiencies in Dublin to the fore and that tends to grab the attention of the media. The delivery of the metro within a particular timescale becomes hugely important. That imbalance is being addressed by this debate on transport outside Dublin.

Transport is a vital cog in the wheel of economic development. Transport policy must continue to be an integrated part of a suite of policies in enterprise, tourism and spatial planning. Transportation infrastructure is the cornerstone of many of these policies. It is critical to the principle of balanced regional development, balance between over-congestion on the east coast, particularly around the conurbation of Dublin, Wicklow, Meath and Louth, and the creation of a reasonable infrastructure on the other side of the country that would help to solve the congestion problems by encouraging people to live in their own areas. Decentralisation is an issue for the Government. I hope the Minister will continue in his current vein. I know from the views he has expressed that he will do so.

The brief is wide and we could talk all day. That is why I will confine myself to a couple of specific points. I am sure my colleague, Senator Wilson, and others will deal with issues with which I cannot deal.

Government policy on motorways has for some time been about developing the inter-urban routes between Dublin and Limerick, Dublin and Galway and Dublin and Cork. However, it is necessary to look at other economic corridors. The road from Port Laoise to Limerick is part of the inter-urban route from Dublin to Limerick. There is probably not the same need to fast track the section of road from Port Laoise to Limerick because there are no real hold ups on that road now. There is a greater need to look at the economic corridor from Limerick to Galway. Most of that is under way through the completion of the Ennis bypass which will be of motorway or dual carriageway quality from Limerick, bypassing Shannon and Ennis. The onward connection to Galway, which is the next phase after the Ennis bypass, is of critical importance for the future of Shannon Airport. It is also critical for the development of a reasonable quality of life for the people who travel between those two cities and within them; for the encouragement of investment in the region through foreign direct investment; and for job creation. I am aware I am being parochial, given that it is in my constituency, but that economic corridor could be a microcosm of balanced regional development. Measures must be put in place that will generate growth in the region and set it apart, putting it in a position to act as a balance to the east coast. The region has been identified in the spatial strategy. Limerick, Shannon and Galway are gateway towns with Ennis as a hub in the middle. It is an ideal area for a pilot programme for delivering critical road infrastructure.

There has already been discussion regarding rail infrastructure. Tremendous progress has been made in terms of railways over the past few years particularly given the lack of investment by successive Governments in this area. The Leader was to the fore as Minister for Public Enterprise in securing the significant investment and commitment to investment that made the announcements now being made possible. The rail infrastructure has suffered from neglect and lack of investment for many years. Much work is being done behind the scenes, the benefit of which is not yet evident. The Minister talked about continuous welded track and the upgrading of stations. That has paved the way for investment in the delivery of rolling stock and the recent announcements by the Minister and the Minister of State. It is an exciting new phase for railways in Ireland. We are taking a leap of almost a century in terms of the kind of service that can be delivered. That will have a number of impacts. First, it will generate much greater demand and put pressure on the Department of Transport to invest further to roll out more rail service with greater frequency and uniformity of service.

The Minister of State touched on the western rail corridor. I am aware that Senator Kitt will want to make some specific points on that issue if he gets an opportunity to speak. I hope the review will come through quickly. It is a great opportunity to put in critical infrastructure for a relatively small amount of money along the western seaboard which has the capacity to deliver on regional development and allow for badly needed growth. It will put in place a foundation on which people can build their homes and lives in that region. I strongly support the people who are proposing the redevelopment of the track and the approach they are taking. The review group is critical; it must taking account of the views of county managers and business interests in the region so that there is proper land usage.

There are lessons to be learned from what has been delivered through the Ennis bypass and the rail connection between Ennis and Limerick. Given current passenger numbers on that line, when a quality service is in place demand will increase. This should be taken into account in projections on the other section of track. The success of the Ennis to Limerick line proves that if the service is of good quality and is frequent and punctual, passengers will use it.

The next phase is to look again at the Ennis to Galway line, which is currently a strong commuter link. It also has the capacity to go onwards to Limerick. These are two fairly large cities with quite a bit of economic activity between them. If that can be done it will open up the possibility of connecting Shannon Airport to that line with the connection of the Shannon rail spur at Sixmilebridge. That is critical to the future development of Shannon, particularly as Shannon Airport is trying to position itself as a low-cost airport to cater for increased demand from companies such as Ryanair and EasyJet. The provision of a rail service from the airport is a critical component of service delivery because the people who come on cheap flights for a short stay are not interested in hiring a car. Linking Ennis, Limerick and Galway with the airport is critical in encouraging people to use that service. The Department of Transport has been in contact with Iarnród Éireann with a view to having a feasibility study carried out.

It is important to examine the impact of the State Airports Act. A new board has been appointed at Shannon which is working quite well. Ryanair has announced nine new routes there this year. The Department is examining issues regarding the cost of restructuring and its financing. That must be kept under review, and I would be delighted to hear the Minister of State's comments later. There is concern in the region regarding the impact on Shannon Development of some of the recent announcements. I understand other airlines are looking at this lower cost model and the new offers the board is able to put in place. I am aware that some have come on board and that Aer Lingus is also considering future developments in that area.

I compliment the Minister on the decision to retain a golden share in Aer Lingus. That is critical as the airline is a strategic asset. It is strategically important in protecting tourism and enterprise through the provision of direct access.

The dual gateway status of the Shannon stopover, as it was known, is of critical importance. There is expectation of changes there. The current policy is a vital component for regional development, not merely a crutch for the airport. It has a critical role in economic development, foreign direct investment, tourism and enterprise development not just in County Clare but throughout the wider region, in Limerick, Kerry, Galway and north of that. Any changes to this policy must be made on sound analysis and on the current facts. It must be based on an analysis of the impact of all the elements I have mentioned.

Unfortunately, a very unhelpful report was produced yesterday by the Chambers of Commerce of Ireland which tends yet again to espouse east coast issues. That report contended that the ending of the dual gateway status would lead to a 10% growth in economic activity. In anybody's estimation, that is wide of the mark. On questioning, one of the authors indicated it would probably be spread over three years. In my view that is well wide of the mark. There was no sound basis for the conclusion. On reading the report it became clear that the proposition is based on data that is five years old. The number of changes that have taken place in the aviation sector in the past five years is phenomenal.

The whole industry has done an about face, many of the key players are gone out of business and the Chambers of Commerce of Ireland are generating a report by two gentlemen which was supposed to be the most authoritative report on the whole open skies discussion for many years. Yet those two gentlemen are taking information from somebody else's report, based on data that is five years old. That has been hugely unhelpful because it has resulted in headlines today which seem to suggest that if we get rid of the dual gateway status in a short period there will be 10% growth in the economy. That shows a total disregard for the facts and it is an issue that needs to be highlighted because it is misleading, given that many people rarely get the opportunity to read behind the report or the facts associated with it. I hope the Department of Transport will not take into account the spurious conclusions of the Chambers of Commerce of Ireland.

I wish to refer to the rural transport initiative which is critically important. Senator Bannon raised some issues about it. As I understand it, the Government has spent approximately €4 million more than was budgeted for in the national development plan. There is a statement also in the programme for Government to the effect that when the programme ends the Government will put in place a new programme to continue to support the rural transport initiative. We all know the benefits and I do not want to get parochial. However, there is a particularly good one in east Clare, the east Clare accessible transport initiative, which has been doing particularly good work. It allows many in isolated rural areas to draw their pension, go to shops, visit friends in hospital and to go to the local village. If society cannot give to those who may not have learned to drive, because of the economic climate in which they grew up, it is incumbent on us to recognise the tremendous work they have put into building this country to its current level. It would be wrong if anybody took from it. I am supportive of the work of the rural transport initiative.