Marc MacSharry (Fianna Fail) | Oireachtas source

I accept that. I am arguing that airports should be allowed to offset investment against all income, rather than rental income only. The Minister acknowledged in his comments in the other House that this amendment is being made to assist Shannon Airport, which is fine. I want to make it clear that all Senators on this side of the House are supportive of Shannon Airport. Ireland needs Shannon Airport to be strong. If it receives the right supports, it can act as a real economic driver for that region and help to ensure the regions contribute to the national effort in a sustainable way. Some of the measures the Government has announced to help Shannon Airport are to be welcomed in that context.

As the Minister is aware - we have corresponded on it - I have a lodged a complaint with the Directorate General for Competition in Brussels regarding the supports that were announced for Shannon Airport. I have made the specific argument that the supports, in isolation, will upset the balance of competition that naturally exists between Ireland West Airport Knock and Shannon Airport. I have suggested that something proportionate should be done to assist Ireland West Airport Knock and allow it to contribute to the national effort and act as an economic driver for the north west. Nothing near the level of support that is being afforded to Shannon Airport would be required.

Frankly, all Governments have looked at the north west as something of a pain.

It is seen as a case of "The north west is crying for supports again" or "The north west is lobbying for investment again", whereas the reality is that, if examined strategically, the north west can make a very significant contribution to the national effort and, not least, begin to cover its own costs.

The performance of Ireland West Airport Knock in recent years has been acknowledged by the Minister, Deputy Varadkar, and others. With ¤160 million in supports in the last ten to 15 years, we have seen Shannon's business drop 63% whereas, with supports of some ¤15 million for Ireland West Airport Knock, we have watched business there increase by close to 350%. The Minister very kindly corresponded to me that the amendment he made in the Dáil spread this out and opens it up to all airports. However, given the importance of rental income, it is only an airport like Shannon, considering the gift of all of the rent roll of Shannon Development to that airport, which would have the income to write that investment off. In many ways, therefore, it is like giving oars to Ireland West Airport Knock and a speedboat to Shannon Airport, and then saying "Look, anybody can win this race". The reality is that without the tools to perform to potential, there is no question that one of the two will be a burden on society and on the nation rather than being a net contributor and, indeed, an engine for growth.

I reiterate that I am all for Shannon but I have used the vehicle of a complaint to DG Competition to highlight the need for the Taoiseach to effectively do something for his region in the same way the Minister is so admirably doing something for his region in the context of Shannon Airport. I believe it is possible to do that, as I have said to the Minister in private, by announcing an investment programme along the lines outlined by the board at Knock. Indeed, following the complaint, a senior delegation met with the board and there is an agreement to examine a way forward over the coming weeks. I hope that will culminate in the announcement of an investment programme, not to throw good money after bad into a project that will not produce dividends but to acknowledge the strategic role this can play. To reiterate, if necessary, more can be given to Shannon but something proportionate must be done for Ireland West Airport Knock so that, together, both can ensure the western seaboard, in particular the south west, can act as a driver and contributor to the national effort in a sustainable way, where historically it has not been in a position to do so.

While I have gone off on a bit of a tangent to provide context, this amendment effectively asks that all income be included by way of write-off on any investment that might be made. To go further, although it is not encompassed by this amendment, while we are restricting the write-offs that are available to higher earners, if people are prepared to invest in projects such as this and there is a net gain to the taxpayer, the community and the country as a whole, we should try to facilitate it.