This article is from page 18 of the 2011-11-29 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 18 JPG
SHANNON Airport can only be given its independence from the Dublin Airport Authority if its debts are completely cleared, part-cleared or taken on by another entity, which would then allow Clare’s international airport begin a new chapter with a clean slate.
The prospect of such a landmark move for the airport that recently celebrated the 75th anniversary of the turning of the first sod in Rineanna in 1936, has been hinted at by Transport Minister, Leo Varadkar.
On a visit to Clare to participate in the 23rd staging of the national tourism conference organised by Clare Tourist Council and Clare County Council, Minister Varadkar confirmed that Shannon’s debts that are now running at € 100m must be confronted as part of any restructuring of the airport.
Speaking in Ennistymon, Minister Varadkar said that Booz & Company – the team of international consultants hired by his department to plot a new future for Shannon will “looking at how much of a debt Shannon could reasonably carry”.
“That is very important at the moment, because Shannon has a very large debt ascribed to it, because of the investment that’s been incurred there and also because of the losses that have been built up over the years.
“It would be very hard to see Shannon work on its own, if it’s to carry all that debt. Part of the work they [Booz & Company] are doing for me is working out what level of debt would be sustainable,” added Minister Varadkar.
In late October, Booz & Company, a leading global management consult- ing firm, that helps businesses and governments and has branches in 39 countries worldwide was given the job of “consulting as widely as possible with the stakeholders in Shannon” ahead of a proposal being put to government that will chart a new future for the 75-year-old airport.
“The consultants haven’t come back to me yet,” Minister Varadkar told The Clare People . “They are going to come back to me at the end of November and I expect to bring a memo to government in January.”
He said that the terms and conditions of Shannon’s “new start” all depended on “what comes out of the (consultation) process. It is not predetermined. What I’ve asked them to do is look at a number of options.
“One of the things that’s clear is there will be no government money given to Shannon. The Government doesn’t give money to Shannon – what happens at the moment is that the profits from Dublin and Aer Rianta International are used to subsidise Shannon and Cork. However, Dublin’s profits are diminishing and that money isn’t there anymore,” Minister Varadkar added.