SHANNON Airport needs to be made independent, Clare TD Joe Carey claimed in his submission to Booz and Co, on the airport’s future.
Booz and Co was appointed by Transport Minister Leo Varadkar to look at future options for the future ownership and operation of Shannon and Cork airports.
In his submission, Deputy Carey stated, “I strongly believe that if managed properly, the setting up of an independent Shannon Airport Authority is the most desirable option for the future success of our airport. I strongly feel the demise of Shannon over the last 20 years is significantly as a result of the disempowerment resulting from the centralised structures emanating from Dublin and therefore I am of the opinion that an independent Shannon can be different from the current stagnant operation.”
He feels local authorities could have a role in Shannon’s running. “The airport must be independent. In saying this, the independence I am seeking is independence from the centralised grip of the current Dublin-based authorities. I am not saying independent of State ownership; I accept that State ownership is critical to the well being of Shannon Airport. The new ownership of the Shannon entity must result in a structure that is independent of other entities and therefore not managed by people who may have a conflict of interest. The singular interest of its owners and managers must be the success, growth and prosperity of Shannon Airport and the Mid-West Region.
“State ownership, as such, of the airport would be enhanced with the involvement of local interests. This could be provided through a structure that would accommodate a minority interest for local authorities (to include Clare, Limerick, Galway, North Tipperary and Kerry County Councils, Limerick and Galway Corporation) and persons and corporations from within the catchment area and indeed others supportive of the airport. I advocate this enhancement of ownership to broaden the empowerment and responsibility of the community with a view to strengthening the local support for the airport.”
He feels some money collected from commercial rates in the region could be spent on the airport. “While recognising the critical financial constraints placed on the Government, the new entity governing Shannon Airport will require Government support. The strongest expression of that support will be the putting in place of the appropriate structures. The new entity will have to be managed in a way that will, in a relatively short time, allow it to cover its own costs. However, in the short term, it may well be that Government financial support will be necessary.
“It would not be unreasonable for any such funding requirement to be generated from a Local Government Contribution. This could be generated by a ring-fenced contribution from the current local rate (local rate payers are currently greatly burdened but I believe the ratepayers of Clare and Limerick would gladly commit a contribution to redevelop their own airport). Again, in discussing the matter with local business people I have been told a vibrant busy airport generates up to 25% extra turnover, in particular, the tourism service industry.”
While he acknowledges the need for Shannon’s cost base to be kept under control, he feels workers cannot be singled out. “It is important to acknowledge the concerns of the people who currently work in the airport. Their fears need to be addressed. When I talk of curtailing cost I am certainly not talking of cutting their remuneration. What I am referring to is the need to control a system that on the one hand negotiated a reduction in staff wages and on the other paid out a bonus to management.”
Deputy Carey claimed current targets for the airport aren’t ambitious enough. “The recently identified targets by the current airport operators of 2.5 million passengers by 2015 are gravely disappointing. Couching our ambitions in language that talks about ‘the need to be realistic’ is not encouraging. Instead we need to be ambitious and courageous,” he said.