Damien English (Meath West, Fine Gael) | Oireachtas source

I thank Senator Gavan for raising this issue. It is always a pleasure to spend time in his company, which I appreciate. We are touching on a familiar subject when it comes to Shannon Airport. I am taking this matter on behalf of my colleague, the Minister for Transport, Tourism and Sport, Deputy Shane Ross. As the Cathaoirleach said, while he could not be here, he did offer to take this matter at another time. He is quite generous with his time, when he can be. As we know, Ministers must at times commit to other diary engagements and these debates often take place at short notice. I think it wrong to complain he is not here when he offered to deal with this at a more suitable time.

The Government's policy in regard to Shannon Airport is clearly set out in the national aviation policy published in 2015. The policy recognises that Shannon Airport holds a strategic importance for connectivity to the mid-west region and also serves as a gateway to the Wild Atlantic Way. I understand a major consideration for the Government in deciding to separate Shannon Airport from the DAA in 2012 was the serious decline of passenger traffic at the airport. Shannon Airport was loss-making since 2008 and passenger numbers plummeted by over 60% from 3.62 million in 2007 to 1.39 million in 2012. A consistent decline on that scale was always going to be challenging to address and would take time. However, since its independence, Shannon Airport has not only succeeded in reversing a five-year decline in passenger numbers, but has recorded four years of successive increases, with cumulative passenger growth of over 24% in that period. That is not to be sniffed at and is quite a good percentage. In 2016, passenger numbers at the airport increased for the fourth consecutive year, with almost 1.75 million flying through the airport, a 2% increase on 2015, with a number of new airlines and services.

Shannon Airport Authority is a subsidiary company of Shannon Group, the commercial semi-State group established in September 2014. The group's strategy is to improve air connectivity, develop its commercial property infrastructure and enhance its portfolio of tourism heritage attractions, all of which will attract more people to live and work in the region. Shannon Group is an enabler, providing the right environment for foreign direct investment and indigenous industry to prosper.

The latest data from the IDA shows the mid-west was the fastest growing region outside of Dublin in 2016, with 16 companies that announced new or expanded operations, citing the global connectivity provided by Shannon Airport as a key reason for basing themselves on the west coast. The year 2016 saw the largest increase on record in employment growth by IDA client companies in the mid-west, making this region the fastest growing nationally for FDI at more than 10%. I spend a lot of time in the Limerick and Shannon area, given my involvement in enterprise and job creation programmes and in trying to future proof companies and jobs. As the Minister has said, much of the feedback suggests that connectivity is a key part of business decision making. The Government and the various authorities involved recognise this, as is borne out in our policies.

The Shannon Group has advised that it is currently focused on providing quality infrastructure to entice more FDI and indigenous investment to the region. To this end, Shannon Commercial Properties, the group's property company, is investing over €26 million in property solutions at Shannon free zone to give the IDA and enterprise agencies the tools they need in attracting investment and jobs to the region.I understand that Shannon Commercial Properties will have developed over 200,000 sq. ft. of state-of-the-art advanced manufacturing, warehousing and office space by the end of this year. This new business accommodation will assist the job creation agencies in enticing more employment and investment to the area.

Like any business owner, the Shannon Airport Authority is conscious of the need to control its costs so that it can remain competitive and continue to attract new airline business in an increasingly competitive international marketplace. In this regard, the company has engaged with staff and union representatives on a range of proposals, one of which is to operate at category 9 on a flexible basis rather than to operate permanently at that level on a 24-7 basis all year round. This proposal has led to claims of the airport being downgraded, which have been repeated here. That is not the case. What is being proposed is an optimal use of resources in line with best business practice, thus ensuring that resources are deployed more efficiently and when required. I am informed that this flexibility will enable the airport to operate at optimal manning levels in order that it might be as efficient and cost-effective as possible and contribute to a more efficient operating model at the airport without any material impact on flight operations.

The categorisation of an airport is from a fire-and-rescue perspective. It is dictated by the International Civil Aviation Organisation, ICAO. The categorisation is based on the size of the aircraft that operate through an airport and outlines the minimum number of fire appliances and fire-fighting media required to operate at the appropriate categorisation.

Shannon Airport currently operates at category 9 level on a 24-7 basis all year round. As I stated at the outset, the operation of the airport is the statutory responsibility of Shannon Airport Authority. The Minister for Transport, Tourism and Sport believes that the airport authority is doing a satisfactory job in a very competitive environment. He believes that it should be encouraged in its efforts to run the airport as efficiently as possible, ensuring the future viability of the company for all of its staff and customers, and securing the airport's position as one of strategic importance for the connectivity of the mid-west region.