Seanad debates

Tuesday, 22 January 2013

Adjournment Matters

State Airports

7:10 pm

Photo of Marc MacSharryMarc MacSharry (Fianna Fail) | Oireachtas source

I thank the Minister for taking the time to come into the House to deal with this issue. My Adjournment matter relates to Shannon Airport and the measures announced by the Government in the budget, as well as indications given throughout last year. My concern is that the State is unfairly promoting a policy to ensure the survival and growth of one airport potentially at the direct expense of another. I want to make it clear, as I have got some stick from a particular county yesterday and today, that I am for Shannon Airport, pro the south-west region and would not seek to scupper investment to help that region and Shannon Airport to perform to its potential. Ireland requires the airport to perform to its potential.

The Minister may or may not be aware that I have lodged a complaint with the European Commission Directorate General for Competition raising concerns about the measures announced some time ago indicating that they are anti-competitive on the basis that I understand Shannon Airport's business plan will specifically target 250,000 passengers at Ireland West Airport Knock and that, effectively, it now has the benefit of the apparatus of State agencies in seeking to do this following the announcement of what I estimate to be a ¤100 million debt write-off, the stripping of certain assets to be sold to IDA Ireland, the proceeds of which will go back to Shannon Airport, among other issues. I estimate that up to ¤300 million is the value of the investment to Ireland West Airport Knock and that region. This equips Shannon Airport unfairly and undermines the potential of Ireland West Airport Knock to continue to grow its business.

The Minister has said that in some ways he admires the performance of Ireland West Airport Knock in terms of what it has achieved in growing its business by 350% - to use his words - in the past ten years at a time when Shannon Airport had lost 63% of its business. In that period ¤160 million was provided for Shannon Airport, while just ¤15 million was provided for Ireland West Airport Knock. The Minister stated:

... if nothing was done for Shannon the airport stood in danger of being passed out by Knock airport in passenger numbers, despite a current gap of over 900,000 passengers.

I think if the trends continue as they are it will happen because Shannon?s numbers are already down 20 per cent this year and Knock is still growing. It is only a matter of time without a change in policy.
We have changed the policy through the actions of the Dublin Airport Authority, DAA, as announced by the Government, and other measures, as indicated by the Minister for Finance, Deputy Michael Noonan, in his Budget Statement to enhance the potential of Shannon Airport to grow and specifically target passenger numbers at Ireland West Airport Knock.

I am not against Shannon Airport, but the Booz report warned that supporting Shannon and Cork airports in isolation would jeopardise the viability of other airports. That is what will happen. We must take a strategic approach to our airports, acknowledge that they can all be economic drivers for their respective regions and maximise the potential of the regions in contributing to the national effort and, ultimately, national recovery.

I ask the Minister to acknowledge the strategic importance of Ireland West Airport Knock to the north-west region and its potential to contribute to the national effort and future national recovery. Second, I ask him to make available proportionate supports to Ireland West Airport Knock to help it to perform to its potential. I am not talking about "capex" and "opex" but rather take a strategic view. I am aware that members of the board and management have met the Minister and other Government representatives some 50 times since he took office to highlight the contribution that can be made in the context of some 900 jobs being created and in terms of the airport being an economic driver for that region.

Rather than Shannon being enhanced in its role to try to rob Peter to pay Paul, all of us can be equipped to focus on the international market to get more people into the respective regions and those regions to contribute to the national effort. The Minister knows where I am coming from. I am aware that people in Clare are extremely annoyed at this disruptive Sligo Senator from the north west potentially querying why Shannon should be supported.

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