Leaders tight-lipped on ARI deal

TWO key Government leaders, Taoiseach Enda Kenny and Finance Minister Michael Noonan, were tight-lipped and sidestepped questions concerning the provision of major funding to safeguard the future viability of Shannon Airport during visits to the region recently.

 

Transport Minister Leo Varadkar recently pledged that the new Shannon Airport Authority will have no nett debt, believed to be in the region of €100 million, once it becomes independent of the Dublin Airport Authority (DAA).

However, the new arrangement also includes the retention by the DAA of the lucrative Aer Rianta International (ARI), which was founded by Shannon executives in the late ’80s, a move that has prompted stinging criticism from former directors. It is believed that Shannon’s €100m contribution for the loss of ARI is only a small fraction of the revenues generated by the company.

Former airport director, Liam Skelly has described the deal as a “crazy decision”. Mr Skelly stated last week, “I am just shocked at what they have done. It beggars belief that they would come up with such a crazy decision.”

Asked about Mr Skelly’s criticism of the loss of ARI for Shannon, Deputy Kenny stated in an exclusive interview with The Clare Champion that he didn’t want to comment on any individual’s statement on the new arrangements for Shannon Airport.

Equally reticent on the controversial issue was Finance Minister Michael Noonan. After consenting to a one-on-one interview, he declined to engage in any discussion on the ARI issue when he was questioned by The Clare Champion after officially turning the sod on a new €13 million health development at the Mid-Western Regional Hospital, Limerick on Monday.

“All I am dealing with is the hospital story this morning. I am not dealing with Shannon Airport. Sorry,” was his terse reply.

Yet, only minutes earlier, Minister Noonan fielded questions on a range of general issues at a press conference attended by local and national journalists. Those questions ranged from the Fiscal Compact Treaty, Shannon Airport and developments at the Mid-Western Regional Hospital, Limerick to overcrowding and patients being accommodated on trolleys in hospital corridors.

In fact, Minister Noonan was asked about the make-up of the new steering group at Shannon Airport and had no difficulty responding. However, he was tight-lipped when it came to Shannon and Aer Rianta International.

On the leaking of the make-up of the steering group, he said, “Confirmation will be provided by Transport Minister Leo Varadkar, who has responsibility for Shannon.

“As far as I know, the names that are published are the correct names. In addition to those names, the key Government departments will be represented at a very senior level.

“The idea would be then to move on and not be hanging around and make decisions. Their job is to implement decisions taken by Government. These decisions are quite clear so it is up to the new group to work out the detail,” he said.

During his questioning, the Taoiseach said there was a call on Government for years to release Shannon Airport from the State airport system and make it independent from the DAA.

“The Government has now made this decision following a lot of reports, including the Booz Report. It showed Shannon Airport would continue to lose money unless something was done about it. Government have made a big decision to release it from the DAA but to retain it in public ownership,” he said.

Asked if it is fair that the DAA should retain full control of ARI, apart from a €100m contribution to Shannon Airport, Deputy Kenny noted Transport Minister Leo Varadkar has already outlined the method that may be used to deal with this asset.

“The two ministers involved, Minister Varadkar and Enterprise Minister Richard Bruton, will come forward to Government with a memo to set up a really strong working group to drive this decision forward.

“It has huge potential for the Mid-West in general. The thing is to get this right. For all those who complained for years about no action being taken, the Government has been very decisive here so we move on and drive it on from here,” he stated.

The Taoiseach was asked if Shannon is still being left in limbo in the absence of a business plan and to comment on claims from Ryanair boss Michael O’Leary that the steering group would still be “sitting around having tea and biscuits” while Shannon continues to lose passengers.

“Everyone is entitled to their opinion. People were waiting 30 years for the Government to make a decision. It is not going to happen in a few months. There are people involved here; people who are with Shannon Development.

“We need a working group that will define the path to the future. It will define a clear process so the entire Mid-West can benefit from what is a critical piece of economic infrastructure.”
Asked about the necessity of a timeline or deadline for the new steering group to complete their work, he said previous Governments failed to have the courage to make a decision about independence.

“This is going to be very exciting for Shannon. We are going to have consultation with all of those who have opinions either way. Some people never want change. If you don’t change you never address the future,” he warned.

The Taoiseach hopes the new steering group will make its decision by the end of the year and stressed it needs to be broadly based with people with vision  about where Shannon would be in 20 years’ time.

“I don’t want this steering group to be confined to a select group because you are talking about a huge region here. You are talking about something that will drive the Mid-West economy for the next 50 years,” he added.