IN A hammer blow to Shannon Air- port’s plans to prosper with the ending of the Shannon stop-over, the Minis- ter for Transport, Noel Dempsey has dismissed the proposed €53 million package for the region as ‘illegal’. With the Open Skies regime set to be introduced from April next, re- gional hopes were being pinned on a €53 million economic and tourism plan to counteract any negative im- pacts on the transatlantic market. Prior to the general election, former A BecTely ced mm\YODON Co AVE DUOSO mm GREUE (on promised ‘a very big package’ for
Shannon.
However, in the Dail last Thursday, current Transport Minister, Noel Dempsey said that the proposed €53 million package “is illegal and we would not get away with it. The €44 million sought in market support is equivalent to the entire Tourism Ire- land budget”.
Minister Dempsey said that the €53 million proposal “was basically a request for €44 million in market support and €9 million in route sup- port for Shannon. I have explained on many occasions that it cannot be done because it is against EU state aid rules to provide any money for a
scheme of that nature.”
Minister Dempsey also stated that the Dublin Airport Authority (DAA) has invested about €100 million in Shannon Airport in the past four or five years. He said, “Shannon Air- port Authority wants independence and provided we can come up with a plan, it should get it. It must stand on its own two feet subsequently. There will be an open, competitive environ- ment and restrictive practices of any nature will have to end.”
He added, “The timing of airport restructuring will depend on the crea- tion of the appropriate conditions that will ensure the financial sustainabil-
ity of each of the three State airports. The restructuring process will require coordinated strategies to achieve the operational and financial readiness of each airport.”
In response, Deputy Joe Carey said, ‘These statements represent, even by this Government’s ambivalent stand- ards, a disgraceful u-turn on pre-elec- tion promises.
“In terms of the €100 million spend on Shannon that the minister points to, only 12 months ago Pat Shanahan described the physical look of Shan- non as ‘tatty’ and ‘scruffy’. It begs the question, where did the €100 million cov ae