Briefing on Shannon separation

A NUMBER of Clare and Limerick TDs were due to meet with Transport Minister Leo Varadkar on Wednesday evening to be briefed more fully on the plans for the separation of Shannon from the Dublin Airport Authority.

 

Progress on the separation is expected quite shortly, while it was expected that more details on new entity that will run the airport and take over some of Shannon Development’s functions, would be revealed to the members at the meeting.

At present, there are rumblings that unions haven’t been given much information about what the future is for their members as yet and some dissatisfaction exists. Also, there is speculation Shannon Development will move to sell-off industrial assets worth around €15 million prior to the new entity coming into existence. It is also believed a major new deal with Ryanair will be announced post-separation.

Speaking to The Clare Champion on Wednesday prior to the meeting, Clare TD Pat Breen said that it was expected information would be given on the procedure regarding the recruitment of a chief executive for the new entity and more information would be forthcoming about the sequence of events to take place in the near future.

Mr Breen said that talks are currently talking place with union representatives and that it is a “very sensitive” time in that regard.

It’s understood the new entity will have incentives that will help to attract aviation-related industries to Shannon.

During a visit to the Mid-West earlier this year, the minister said, “I think what we really need in Shannon is a major initiative to turn the airport and the airport complex around in order to bring investment and jobs into the region. What is now envisaged, probably the closest example I can think of is the IFSC in Dublin. That was a place near the Dublin Docklands, which was in decline during the last severe recession and a decision was made by the government of the time to develop it as an International Financial Services Centre and to put in place the structures and incentives necessary to attract investment into that centre, which is now a phenomenal success, raising loads of revenue for the State and employing tens of thousands of people.”

While the separation of Shannon from the DAA has been sought for years, the stakes are very high.
In the past, losses as Shannon could be absorbed by an overall structure but there won’t be any safety net in the future. Indeed, there are EU regulations that would prevent the State from supporting Shannon, so it’s clear there is a lot at stake.

Speaking to The Clare Champion last week, Clare TD Timmy Dooley said if Shannon had been in a post-separation environment when Ryanair opted to greatly reduce its services, it would have been forced to close.