Written answers

Wednesday, 8 November 2006

9:00 pm

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Question 247: To ask the Minister for Transport if his Department will contribute to a €53 million economic plan developed by the Mid-West Regional Authority for Shannon Airport and the mid-west or if EU rules on Government supports prevent the Government from contributing financially to such a plan. [36952/06]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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As I stated in my reply to Parliamentary Question 520 of 24 October 2006, none of the State airports, including Shannon Airport, receive any Exchequer funding. Any proposed exchequer grant to airports would have to comply with EU rules on State Aid.

The funding of future developments at each of the three airports will be a matter for commercial consideration by the new independent airport authorities when Shannon and Cork Airports become fully independent in accordance with the framework provided in the State Airports Act 2004.

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Question 248: To ask the Minister for Transport if he will intervene to have a business plan for Shannon Airport put in place in view of the little progress being made between unions and management in relation to the survival plan where talks are going on for more than 12 months; and if he will make a statement on the matter. [36954/06]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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All three State Airport Authorities are currently working on the production of business plans to cater for their establishment as independent airports under the State Airports Act, 2004. Responsibility for the production of the business plans rests with the authorities. My function, under the Act, is to consider the plans, in conjunction with the Minister for Finance, once they have been submitted.

If Shannon Airport is to develop as a successful and sustainable business, it is clear that one of the issues that must be addressed in its business plan is the airport's very high cost base. Negotiations with the unions at Shannon on the cost cutting changes that would be required to ensure the viability of the airport have been underway for some time now. In this the parties have been helped by the Labour Relations Commission, the Labour Court and the National Implementation Body.

Recently the Labour Relations Commission oversaw an intense round of negotiations between the parties and I understand that it intends to issue its recommendations to all parties later this month.

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