Month: March 2012

ALMOST half of all Clare homes have no recognised waste collector and no indication of how or where they dispose of their household waste. According to new figures released by the Environmental Protection Agency (EPA), 47 per cent of Clare homes have no kerb-side waste collection service.

With fly-tipping and illegal dumping now reaching epidemic proportions in every part of the county, fears are growing that the costs associated with disposing of household waste properly are deterring many people from disposing of their waste properly.

This latest EPA figure does not mean that 47 per cent of Clare households are involved in illegal dumping. Anecdotal evidence would suggest that there has been a significant increase in the number of neighbours sharing a single collection service and people bringing rubbish directly to the Central Waste Management Facility at Ballyduff beg for disposal.

“The figures in the report means that 47 per cent of households in Clare did not avail of, or were not offered, a kerb-side collection service,” said Emily Williamson of the EPA.

“However, to qualify this, this does not mean that 47 per cent of households in Clare were illegally dispos- ing of their waste, as we are aware that there are households that bin-share, opt to bring their waste to civic amenity sites or landfills or who can bring their household waste to their workplace for collection.

“The percentage is based on the number of households that the waste collection operators said they collected from and the number of occupied houses in the county.”

It has also been mooted that Clare County Council could soon introduce new bye-laws which would put the onus on the home-owner to show how they are properly disposing of their waste.

Similar bye-laws have been introduced by a number of local authorities, including Limerick County Council, in recent months and they require households that do not have a recognised waste collection service to show some level of proof as to how they are disposing of their waste properly.

According to the EPA report, more than 13,000 tonnes of household waste were disposed of at the Central Waste Management Facility at Ballyduff beg in 2010. It is, however, unclear how much of the waste from from individual households and how much was from commercial operators. The Clare People contacted Clare County Council in relation to this story but no comment was forthcoming at the time of going to press.

THE financial aspects of the proposed take-over of Shannon Airport by local authorities and other agencies in the mid-west region would have to be hammered out before Clare County Council agrees to enter into such a role.

This message was delivered to transport minister Leo Varadkar on Monday, after Clare County Council was told to “step warily” with any decision to enter into an agreement to manage the airport.

“You also have to be careful what you wish for,” said Cllr Joe Arkins (FG) in voicing concerns about any county council involvement in management role at Shannon.

“This report is very much a first step and there will be many more steps to be taken before there is a model or a solution put in place in terms of the longterm future of Shannon,” said Director of Service, Ger Dollard.

“I would say that the local authority should be very wary of taking on this. It may be a huge burden. Who would pay the losses, rates etc, etc? We’d want to,” said Pat Gaughran, the community representative of the council SPC.

After a debate, it was agreed by members of the SPC that “the council continue to be involved in discussions in the future model for Shannon Airport, with the Deparment of Transport, Shannon Development, and all other local agencies and stakeholders” and that the local authority would undertake a “due dilligence process and obtain whatever professional advice that may be necessary”.

CLARE County Council will only step up to take over the running of Shannon Airport if the Government stumps up enough money for ambitious plans to finally give the airport its freedom from Dublin Airport Authority (DAA) control.

And, the financial package for a local authority takeover in conjunction with Shannon Development would have to include diverting Aer Rianta International profits away from greedy hands of the DAA and straight into Shannon’s coffers, where the inspiration for ARI originated in the first place.

That was the resounding message sent out to Minister for Transport, Leo Varadkar, on Monday during a specially convened meeting of Clare County Council’s Special Policy Committee on Enterprise and Tourism.

“We need to fund the airport going forward if we are to get involved,” said SPC chairman Richard Nagle. “We are not in a position to come up with large-scale funding for Shannon – money that the airport requires. Funding, that’s the kernel of the issue,” he added.

“The Government owes Shannon,” said local hotelier, John Madden, who addressed the SPC meeting. “I would like to see Clare County Council and Shannon Development involved in the ownership, provided we get back Aer Rianta International,” he added.

“Until the financial data is made available and it’s made clear to local stakeholders what they’re being asked to take, I don’t think formal decisions can be made on this report,” said Director of Service, Ger Dollard.

“The financials at the end of the day have to add up for local stakeholders taking on a liability when they can’t fund that liability,” he added.

In putting the future of Shannon firmly back in the Government’s court, SPC chairman Cllr Nagle highlighted the pivotal role Shannon has to play in terms of balanced regional development.

“We have a spatial strategy. There is supposed to be balanced regional economic development. Shannon Airport is an international airport servicing the west of Ireland,” he said. “It is an integral and essential part of the infrastructure. If we are to have any form of rebalancing in terms of economic growth and development,” he added.

LIMERICK County Council says they stand ready to play a major role in the future development of Shannon Airport, should a member of the local authority be appointed to the new management structure for the airport.

Following the publication of the Booz Report into the future of Shannon Airport last week, it looks increasing likely that both Clare County Council and the soon to be amalgamated Limerick City and County Council will have a seat at the table when a future management structure for Shannon is announced.

According to the Cathaoirleach of Limerick County Council, Mary Harty (FG), a public voice on board of the airport will prevent it getting “wrecked” in a similar way to the local health services.

“I think it is important that the locally elected representatives have their say when it comes to something as important as the airport. We all know the difference it has made to the health system not to have a local say in how that operates and we don’t want the airport to be wrecked in a similar way to this,” she said.

“Shannon Airport is a massive driver for everyone in the mid-west, for Limerick and for Clare. We are very keen to have a role to play, Shannon Airport is the biggest gateway location in area and there is no question that it is vitally important to everyone in Limerick that it is made to work.”

Cllr Harty also dismissed the notion that councillors would not have the expertise to operate a complex facility like Shannon Airport.

“At the moment we don’t have the experience but we will never get the experience until we have a chance to work with all the other stakeholders and make our points heard,” she continued.

“This is such an important facility for the area it is vital that a local representative has a say in its future.”

CLARE County Council is to begin negotiations with its counterpart in Limerick and Shannon Development to explore the feasability of taking over the management of Shannon Airport from the Dublin Airport Authority.

This move was heralded at a special meeting of the local authority’s Special Policy Committee on Tourism and Enterprise on Monday, which came together to discuss the publication of the censored Booz and Company report on the future of Clare’s international airport.

County Council Director of Service, Ger Dollard; Mayor of Clare, Pat Hayes; Mayor of Ennis Michael Guilfoyle all backed the move to open up discussions between the key stakeholders in the region that the Booz and Company consultants say should take responsibility for running Shannon.

The move was sparked by Cllr Joe Arkins (FG), who questioned whether “any contacts, formally or informally, had been made with the other proposed stakeholders – Limerick County Council and Shannon Development.

“It would be advisable that you make contact with them, in order that Clare County Council might be able to find out what the position of Shannon Development and Limerick County Council is, or if there is an agreed position between all the stakeholders,” added Cllr Arkins.

“I would agree with Cllr Arkins,” said Cllr Richard Nagle, who is chairman of the SPC on Tourism and Enterprise. “There has to be consultation with the other bodies,” he added.

“We have had disjointed approach over the years. We haven’t fought a good battle as a region,” said Mayor of Clare, Pat Hayes.

“The decision that’s made has to be in the long term future of Shannon Airport because the west of Ireland is very much at risk if we don’t get it right,” he added.

“I’d be concerned that Limerick didn’t make a submission,” said Mayor of Ennis, Michael Guilfloyle.

“We haven’t have had any discussions since the report was published,” admitted Ger Dollard. “I presume the next step will be for the Minister and the Government to decide what option that we should pursue on foot of the report,” he added before it was agreed that negotiations with the other stakeholders would be kickstarted immediately.

LOCAL interests can’t be trusted to run Shannon Airport properly, because the move to give Clare County Council, Limerick County Council and Shannon Development control of the county’s international airport could bring about its “closure in a short few years from now”.

That’s the warning that has been sounded out by local Fianna Fáil TD and front bench spokesperson on Transport, Timmy Dooley, who has railed against the main recommendation contained in the Booz and Company report.

“This would be hugely damaging,” Deputy Dooley has told Minister for Transport, Leo Varadkar, who commissioned the report on the future of the three state airports from the team of international consultants at Booz and Company.

“According to Booz, the new air port model will also be based upon developing the land bank at the airport and developing cargo along with passenger traffic,” continued Deputy Dooley.

“We are in the worst economic crisis since the 1920s and there will not be any revenues from the land bank for 10 years and we are way off developing cargo, so before there is an upside from these in 10 years time, the airport could be closed before there is a recovery in the economy.”

Mr Dooley has claimed that the locally-owned based model “would be disastrous for Shannon and the region” in an airport that’s currently making losses of between € 8m and € 10m a year has accumulated losses of an estimated € 100m.

“Under the model proposed by Booz, where will the money comes from? Clare County Council doesn’t have any money. Shannon Development also doesn’t have any money and its functions are currently being reviewed by Government,” said Deputy Dooley.

Shannon currently receives € 8m per annum in subvention from the Dublin Airport Authority.

THE inspiration for the establishment of Shannon Development in 1959 was Clare’s international airport which then enjoyed the status of the hub of the aviation.

Now, over half a century on and in a complete role reversal, the flagship development and tourism agency in the mid-west region has been challenged to play its part in securing the future of Shannon Airport.

The Booz and Company report, in outlining the advantages of sepa- rating the airport from Dublin Airport Authroity control, has said that Shannon Development would have a huge role to play in helping develop “niche business opportunities” under a new operation model.

This would envisage a model that would see control for the airport vested in a holding company made up of public/private interests.

“The airport lacks sufficient integration with the surrounding land bank, with the current management having no function in developing alternative ventures with a mixed aero-industrial complex,” the Booz and Company report states.

“The airport covers an area of 2,000 acres of which 25 per cent is development land, and the airport is adjointed by the Shannon Free Zone.

“There is also a business and technology park of around 600 acres that is also owned and managed by Shannon Development.

“Other benefits are linked to its geographical position and roles as an airport that provides 24-hour operations each day of the year,” the report adds.

The consultants’ report has highlighted the need for “the Govern- ment to better integrate the airport with surrounding industrial developments, and in particular the Shannon Free Zone, which is currently owned and managed by Shannon Development”.

And, the prospect of Shannon Development parting with some of its sizeable landbank if private interests are to be attracted to investing in the airport.

Booz and Company say that for an airport like Shannon “to be attractive to private sector participation, investors could be granted assets that can generate income, such as develop- ment land or commercial property.

“In this context, the viability of Shannon would be enhanced via a structure that enables the better utilisation of development land within the current boundary estimated to be around 5,000 acres, as well as in leveraging the adjoinging Shannon Free Zone,” it adds.

Shannon Development Company has declined to comment on the contents of the Booz and Company report, only to say it was “currently reviewing the redacted version of the report and has no further comment at this time”.

PLACING the control of Shannon in the hands of people at local level is the best way forward for the airport, the local chamber of commerce has said in reaction to the publication of Booz and Company report.

However, that control must be handed over with the debts at the airport – currently standing at around € 100m – cleared by the Government as Shannon gears up for a new future where cargo traffic is a key driver in boosting lagging fortunes.

“The scenario whereby Shannon moves to a concessionaire model which would see the airport operated by a third party specialist airport operator giving a stewardship role to the local authorities in Clare and Limerick, to local commercial interests and to Shannon Development in a holding company, offers the most potential for Shannon’s future development,” Shannon Chamber of Commerce president, Damian Gleeson.

“It places decision making for the airport’s future at a local level.

As long as this proposed autonomous structure comes without debt, Shannon could look forward to a new future, whereby every avenue for its development could be examined for its innovativeness and its ability to add value, traffic and revenue to Shannon. Harnessing the support of all stakeholders in the Mid-West would lead to energised thinking and a new impetus for taking the airport in a new direction.

“Cutting ties from a national structure is going to be challenging. Harnessing the airport’s viability will require support from all stakeholders in the mid-west. However, Shannon has a history of innovativeness and for facing adversity with courage and determination,” added Mr Gleeson.

THE creation of a new independent Shannon run by a holding company that’s fully separated from Dublin Airport Authority influence while still under State ownership is the best way forward for Clare’s international airport.

That’s the view of Booz and Company – the consultants hired by the Government to come up with a new roadmap to secure the future of the 75-year-old airport.

The consultants said that this model of governance “provides the best ap- proach to balancing the stakeholder objectives with the viable operation of the airport”.

In backing what’s termed “a concession model”, which would pave the way for the holding company to lease out the airport for up to 35 years, the consultants have warned that “the current state of affairs at Shannon has resulted in demand levels that are not sustainable for the airport”.

Continuing Booz and Company says “Shannon Airport is faced with a significant threat to its viability under current ownership arrangements and further separation from the DAA would offer greater opportunities for setting policies that encourage route development and traffic growth and for the development of niche business opportunities.

“Under this approach, the competition of the local authority holding entity could include Clare and Limerick county councils.

“The holding company could also include Shannon Development, as part of a move to integrate the airport with the nearby industrial land, as well as input from relevant commercial interests and public bodies.

“In addition, the local concession model is the preferred model of local stakeholders since it provides an opportunity for them to take greater involvement in the operation of the airport and in the development of the surrounding land.

Creating a separate entity at Shannon, if well managed, is unlikely to significantly affect the DAA’s relationship with its financiers,” the report adds.

However, Booz and Company have warned that “creating a viable airport business under separate ownership” at Shannon “requires the new airport operate to significantly improve financial performance and to be able to access sufficient funds to maintain and invest in the airport over a longer term”.

To ensure this, Booz and Company say “the Government may need to consider appropriate mechanisms for ongoing support”.

This, the consultants say, could be done by way of “integrating the airport with adjoining industrial developments (Shannon Free Zone, supported by the inclusion of Shannon Development in the new holding company structure) and appointing a concessionaire that is experienced in developing successful aero-industrial airport businesses, could better ensure sustainability of the airport and surrounding areas”.

IF implemented, one of the options for the future operation and management structure to govern Shannon that has been put forward by the team of international consultants hired by the Government would mean little change for the airport.

That’s according to Booz and Company themselves, after the final report, which has been part-published by the Minister for Transport, Leo Varadkar, outlines that one of the two options favour by the consultants would not give Shannon its independence and instead place control of the airport’s destiny in the hands of a new holding company.

“State control of Shannon would be maintained, but would be given the status of an independent subsidiary within overall airport group,” says the Booz and Company blueprint.

“The independent airport board would set the strategic direction for the airport and appoint individual management teams with responsibility for developing tailored business plans and marketing strategies,” it adds.

Booz and Company also say that “if properly structured, the primary benefit of this approach is that it would provide the airport with enhanced autonomy at local level”, enabling Shannon “to develop policies and processes that will enhance airport competitiveness with their specific market”.

However, the downside to this option is that it amounts to a watered down version of the current status quo where Shannon is concerned. In theory, Shannon would be given equal status to Dublin and Cork, with all three airports being subsidiaries of a new Ireland Airports Corporation (IAC), but could still be the junior partner of the IAC because of having the smallest number of passengers.

That these pit-falls exist have been confirmed by Booz and Company’s admission that “a risk of this approach is that increased competitiveness of one airport could have a detrimental effect on another airport within the group by diverting traffic away from one or both of the other airports.

“The holding company may therefore choose to impose restrictions on the subsidiary boards to ensure a group-focused approach to financial risk management.

“This would undermine the key benefit of separation and lead to outcomes that are similar in reality to the current situation, but it would create a structure more suitable for future separation.

“Under this approach, there would also be some additional costs associated with creating extra governane at the national level, and through duplicating some management roles at the airport currently performed by the DAA,” Booz and Company add.