Shane Ross (Dublin Rathdown, Independent) | Oireachtas source

I thank the Senator for the very interesting and challenging proposal he has made. It is sometimes difficult to know where the fine lines should be drawn between being provident and prepared and being premature. Senator Kieran O'Donnell has got the balance right judging by his interest in the region. It is only proper that he should bring forward proposals of this nature. However, he will realise that the Brexit scenario is unwinding and we are preparing for all possible eventualities. The proposal the Senator sent to my Department last week will get due consideration. It will go into the mix in circumstances in which all constructive proposals should be examined properly. This one will be.

The national aviation policy recognises the important role Shannon Airport plays in the economic and social fabric of mid-west region. The airport enjoys the advantage of full US pre-clearance as well as the longest runway in Ireland and the ability to handle all aircraft types. These features underpin the airport's ambition to expand and to develop niche opportunities in aeronautical and aerospace engineering. This was integral to the aim of Government in the separation of Shannon Airport from the Dublin Airport Authority, the restructuring of Shannon Development and the establishment of Shannon Group in 2014. Shannon Group promotes and facilitates air transport and aviation services in and around Shannon Airport and optimises the return on its land, property and shareholdings in subsidiary companies. Its principal activities include the operation management and development of Shannon Airport, but also the promotion, management and development of the commercial property portfolio held by Shannon Commercial Properties, SCP, and the operation of the heritage and tourism sites managed by Shannon Heritage. A fourth business unit of the group is the International Aviation Services Centre, IASC, which is focused on further development of the aviation business cluster in Shannon. Under the National Development Plan 2018-2027, Shannon Group, through its subsidiaries Shannon Airport Authority, Shannon Commercial Enterprises and Shannon Heritage, plans to invest in excess of €150 million in its capital programme over the period to 2022. That is quite a short period in airport terms. Therefore, not only does Shannon Group manage the airport; it plays an important role in facilitating development and innovation in the mid-west region. As Minister, I support this role and I ensure that my Department does everything possible to facilitate it.

The Senator will appreciate that the establishment of air transport connections is a question of commercial agreement between airlines and airports. As Minister for Transport, Tourism and Sport, I have no function in these commercial decisions. The Government's regional airports' programme provides Exchequer support to some of Ireland's smallest airports, namely, Donegal, Ireland West Airport Knock, Kerry and Waterford, through a number of schemes and in compliance with EU guidelines on state aid. Passenger numbers at these airports are under 1 million per year and the capital supports under the programme are limited to grant-aiding investments in safety and security enhancements to help these small airports to comply with international regulatory obligations in these areas. A public service obligation, PSO, air services scheme also operates between Kerry and Dublin Airports and between Donegal and Dublin Airports and is justified under EU guidelines by reason of peripherality. I have no plans to introduce additional PSO air services domestically or internationally.

There are ongoing consultations between my Department, other Government Departments and agencies and public and private aviation stakeholders in order to continue to support Shannon Airport and Shannon Group in their strategic endeavours as well as to encourage the airport to plan for and mitigate the risks associated with Brexit. In that context, it is important that the entire aviation industry, including airports, takes steps to prepare and where possible to reduce exposure and to limit reliance on any one particular destination or service. The full implications of Brexit will only become clear once the future EU-UK relationship has been decided. However, the draft political declaration setting out the framework for the future relationship between the EU and the UK, which was published recently, foresees a comprehensive partnership between the EU and the UK across a range of areas of importance to Ireland, including air transport. The European Commission's contingency plan, which was published on 13 November, outlines plans to propose measures to ensure that disruption to air travel between the UK and the EU will be minimised in the event of a disorderly UK exit from the EU, subject to reciprocity. My officials will continue to engage with Shannon Group to explore ways to minimise whatever negative effects might arise as a result of the UK's departure from the EU.

The Government also supports the development of air connectivity and the expansion of air services more generally through targeted funding for co-operative marketing activity. Co-operative campaigns with partners facilitate increased marketing effort and help promote destinations more widely. Funding of €1 million was made available to Tourism Ireland annually in 2016, 2017 and 2018 for co-operative marketing. This funding, supported by contributions from regional tourism stakeholders including airports and ports, was matched by air and sea carriers and resulted in total overseas marketing expenditure of €2.6 million in 2016 and €2.4 million in 2017. An increased budget allocation for 2019 will continue to support both seasonal and regional growth and will be underscored by a commitment to focus co-operative partnership activities on the January to April and October to December periods for Great Britain and the North American and European markets. I encourage all airports, including Shannon Airport, to avail of this funding to optimise air services with regard to alternative European hub connections.