Pat Breen (Clare, Fine Gael)
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Question 206: To ask the Minister for Transport further to Parliamentary Question No. 422 of 27 February 2007, the transitional arrangements he envisages for Shannon in the event of an Open Skies agreement being reached between the EU and US on 30 April 2007; the capital investment he envisages for the region under his Department's tourism and economic development plan; and if he will make a statement on the matter. [9280/07]

Martin Cullen (Waterford, Fianna Fail)
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In November 2005, EU and US negotiators concluded work on the text of a first phase EU-US Open Skies agreement that included a transitional arrangement for Ireland, relating to the phasing out of the 'Shannon Stop'. During the transition period, the ratio of Dublin/Shannon flights would move from 1:1 to 3:1 so that for every one flight to or from Shannon, a carrier can provide three flights to or from Dublin. The draft agreement was unanimously endorsed at the December 2005 Transport Council subject to sufficient progress by the US side on opening up ownership and control of US airlines to EU investors.

Following difficulties on the US side, negotiations at EU-US level resumed in January 2007, with both sides reaffirming their commitment to the goal of concluding an EU-US agreement that would open access to markets and maximise benefits on both sides of the Atlantic. A draft Open Skies agreement between the EU and US was recently finalised and the text will be presented to Transport Ministers for decision at the next Council Meeting on 22 March 2007.

The transitional arrangements for Ireland incorporated in the proposed EU US Aviation Agreement in November 2005, related to the period from October 2006 to April 2008. It has recently been agreed with the US and the European Commission that these transitional arrangements will stand as originally agreed and that full liberalisation will take effect from April 2008.

As I indicated in my previous reply, my Department is currently finalising an Economic and Tourism Development Plan for Shannon, with a view to assisting Shannon Airport, and the wider region, to adapt to the proposed new arrangements. In preparing the Plan, my Department has consulted with the Department of Arts, Sports and Tourism, the Department of Enterprise Trade and Employment, the Department of Finance and the Department of Communications and Natural Resources. A liaison group, established by the Mid West Regional Authority, has separately prepared a report on the future development of the Shannon region as an input to the Plan.

It remains my intention to bring the Economic and Tourism Development Plan to fruition in the context of the formal agreement of the EU/US Open Skies proposals.