Leo Varadkar (Dublin West, Fine Gael)
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Question 131: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the way Shannon Development is funded, with a breakdown of its spending; and if she will make a statement on the matter. [44667/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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Shannon Development is funded by a combination of Exchequer funding and own resource income.

My Department provides funding to Shannon Development, through its Estimate to fund grants to industry in the Shannon Free Zone. The allocation for 2007 was €3m but due to the demand led nature of the process just €551,000 of this was drawn down. The allocation for 2008 is €3m. While there is a nominal provision in my Department's Estimate for Shannon Development Pay and Administration, in practice, this is wholly funded from the Company's own resource income and there has been no requirement to draw down funding from this source for the past ten years or so. The Department of Tourism provided grant-in-aid of €845,000 in 2007 for administration and general expenses (tourism development) in 2007 and the corresponding allocation for 2008 is €870,000 towards tourism activities in the region i.e. operation of tourist information offices, tourism marketing and product development.

The Company's own resource income is generated mainly from its management of state property assets in the mid-west region. Rental income and service charge income is generated from the Company's property portfolio and contributed €17m to the overall funding in 2007. The balance of €1.5m of own resource funding is generated from tourist information office sales, deposit interest and other miscellaneous income.

Shannon Castle Banquets & Heritage Ltd, a subsidiary company of Shannon Development generated income of approximately €13m in 2007 with costs of roughly the same amount. This company is essentially in a break even situation.

Shannon Development, in common with all Government Departments and state agencies, were required to effect specified levels of savings in their pay costs, consultancy/advertising etc. Discussions are ongoing between my department and Shannon Development on the mechanisms necessary to achieve these savings. The following table analyses Shannon Development's expenditure for 2007.