Kieran O'Donnell (Fine Gael)
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I thank the Minister for Transport, Tourism and Sport, Deputy Ross, for taking time out of his extremely busy schedule to accommodate me with this Commencement matter. As he is aware, I have raised previously the issue that Shannon Airport is the only international airport in the country without a European hub. I am framing this debate specifically in the context of Brexit. Shannon Airport's connectivity to the world is through Heathrow Airport, which is a great hub in terms of connectivity. In regard to worldwide connectivity, it is ranked 13th and first in terms of Europe connectivity. However, in the event of a hard Brexit, or whatever form Brexit takes, and we are now only four months away from it happening, third or fourth traffic rights for passengers coming through airports will be expected to be within any deal, but co-chairing may not be included. Currently, someone wishing to fly with, say, Aer Lingus, from Shannon Airport to Australia, for example, via Heathrow Airport, under current co-chairing arrangements they will be able to book that flight through Aer Lingus, get a connecting flight in Heathrow and travel on to Australia. However, under what is now being proposed by the European Commission, co-chairing may not be applicable. That means Heathrow Airport may not have the level of connectivity that Shannon Airport needs.

I met with the Shannon Group in recent weeks and relayed my discussion with them to it. I requested that it make a submission to him as the Minister responsible looking for a Brexit strategic route development fund to establish a European hub, thereby ensuring that Shannon Airport is Brexit ready. That could be in Frankfurt, Amsterdam or Paris-Charles de Gaulle. Effectively, it would be a major European hub. In terms of the last time Shannon Airport had a hub, CityJet was flying into Paris-Charles de Gaulle Airport up to 2009 and Ryanair was flying to Paris Beauvais up to 2016.However, we will be utterly exposed in the event of a hard Brexit in terms of connectivity through Shannon Airport if there is no European hub. As a result of the fallout from Brexit, it may become difficult to secure access through Heathrow as a European destination.

I wish to put a couple of statistics to the Minister. Of all traffic through Heathrow, 45% provides onward connection. Of all traffic going through Shannon Airport, 46% goes to Heathrow. The mid-west region has well over 120 foreign direct investment companies. Shannon Group alone supports 46,000 jobs in our region. Under the Project Ireland 2040 plan, we are looking for balanced regional development. In the event that we do not have proper European and worldwide connectivity following Brexit, the mid-west and west will be put at risk in the areas of jobs and tourism, which is hugely important for us. The airport is actively engaging with airlines now to establish a European hub and I ask the Minister to consider the proposal he received in that regard last Friday. I ask him to take it under serious advisement. The issue is not solely about the airport. It is about the mid-west and western regions, balanced regional development under Project Ireland 2040, the protection of jobs and investment and inward tourism.

Support will be needed by way of a strategic route development fund to help the airport to establish a European hub quickly to ensure we are Brexit ready should access through London Heathrow not continue in its current form. A key element is code-sharing, which means it will not be possible to book a flight through Shannon and onwards through Heathrow. That would not be facilitated any longer under code sharing. I hope the Minister will consider this matter in the spirit it is raised. This is about Ireland Inc., Shannon Airport and the Limerick, mid-west and western regions.

Shane Ross (Dublin Rathdown, Independent)
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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.

Kieran O'Donnell (Fine Gael)
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I thank the Minister. I welcome his commitment to examine the proposal submitted to his Department last Friday by Shannon Group on the need for a strategic route development fund as a contingency plan in the context of Brexit. This is about contingency planning now but it may become a reality very soon. In that regard, it is about preparation. We cannot have a situation arising where the entire western seaboard of Ireland, including the mid-west where I live, has no European connectivity. Cork has such connectivity, as does Dublin. It is important. This could arise as a result of something completely outside the control of Shannon Airport. This is Shannon Airport's backstop. I welcome the fact that the Minister will shortly meet the airport group. The arrangements for that are being finalised.Will the Minister reaffirm that he will give serious consideration to the proposal for a Brexit strategic route development fund for Shannon Airport in order to establish a European hub there and ensure that we are Brexit ready and not wholly reliant on the London Heathrow route, for which there may be implications when the UK withdraws from the EU?

Shane Ross (Dublin Rathdown, Independent)
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I will certainly commit to examining this matter carefully. Preparation for what is still considered to be an unlikely event is wise, and raising the matter in the Seanad is useful and adds to the debate. I also very much look forward to meeting the airport group in an encounter arranged by the Senator, either later this month or early in the new year.