Seanad debates

Tuesday, 11 June 2019

Nithe i dtosach suíonna - Commencement Matters

State Airports

2:30 pm

Photo of Shane RossShane Ross (Dublin Rathdown, Independent) | Oireachtas source

I thank the Senator for once again raising this very important issue. He has certainly been leading the field in addressing this issue and his concern for Shannon Airport is second to none. In whatever form it takes, Brexit will have a significant impact on Ireland and requires planning by Government, business and citizens as well as at European Union level. Brexit will have negative consequences in all scenarios but we are determined to be as ready as possible.

On 8 May, Ireland and the UK signed an important memorandum of understanding on the common travel area, CTA, reaffirming the commitment of the UK and Irish Governments to maintaining the CTA in all circumstances. Irish citizens will, therefore, continue to be able to move freely to live, work and study in the UK while British citizens can do the same in Ireland. Similarly, the European Commission's regulation aimed at ensuring basic air connectivity in a no-deal scenario has been finalised and the UK has confirmed its intention to reciprocate the proposed measures. While this cannot mitigate the overall impact of a no-deal scenario or the assurances contained in the negotiated withdrawal agreement, the fears that aircraft might not be able to fly in the event of a no-deal Brexit are being addressed and the risks to air travel between Ireland and the UK and the UK and the rest of Europe have been significantly mitigated.

Government Departments, including mine, as well as key agencies, have been preparing for Brexit for three years now and notwithstanding any comfort we can take from commitments on the CTA and agreements on basic air connectivity, we continue to prepare through contingency planning and stakeholder engagement. Brexit is being managed on a whole-of-Government basis and my Department is represented on all relevant cross-departmental co-ordination structures. Additionally, an internal Brexit departmental committee meets monthly to oversee the Department's analyses and planning in the areas of aviation, maritime transport and tourism. Officials have regular, often daily, contact with stakeholders on Brexit planning.

Stakeholder engagement is important to the Government's domestic response to Brexit preparedness. As well as support provided by the Government, businesses and other affected sectors also need to respond and be prepared. Regardless of the impact of Brexit, there are some preparations that are purely good general business practice. For example, my officials and I have continually stressed the importance of all stakeholders, including Shannon Airport, taking necessary steps within their control to prepare for

Brexit. This includes diversification of markets. The Senator will be aware that establishing air transport connections is the result of commercial agreements between airlines and airports. As Minister for Transport, Tourism and Sport, I have no function in these commercial decisions. However, I support all endeavours of Shannon Airport to ensure its prosperity in line with Government policy and taking account of national and EU law.

The Senator referred to the fact that earlier this year, I met the chair and CEO of Shannon Group. During this meeting, Brexit was raised, particularly with regard to EU hub connectivity. I am aware that the company is endeavouring to secure alternative European hub connectivity post Brexit and is in discussions with several airline operators. The company has submitted a document, to which the Senator referred, to me on this matter. My officials are engaging with Shannon Group to explore what options are available to procure such air services, including supports from our tourism agency for co-operative marketing activity.The Government supports the development of air connectivity and the expansion of air services through funding from Tourism Ireland for co-operative marketing activity. Co-operative campaigns with partners facilitate increased marketing effort and help promote the destination. An increased Tourism Ireland budget for 2019 will continue to support both seasonal and regional growth and will be underscored by commitments to focus co-operative partnership activities on the January-April and October-December periods for Great Britain, North American and European markets. I continue to encourage all airports to avail of this funding to optimise air services, including Shannon Airport regarding alternative European hub connections.

Project Ireland 2040 supports investment to promote high-quality international connectivity between Ireland the rest of the world. This is vital in underpinning international competitiveness and to responding to challenges and opportunities arising from Brexit. In line with the 2015 national aviation policy for Ireland, the role of Shannon Airport as a key tourism and business gateway will continue to be Government supported. I welcome that Shannon Group is exploring ways of availing of funding under Project Ireland 2040, such as the urban regeneration and development fund and the rural regeneration and development fund. My Department is engaging with Shannon Group to ensure all opportunities are maximised for the benefit of it and the region.

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