This article is from page 4 of the 2013-10-22 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 4 JPG
TRADE unions representing staff at Shannon Airport and Shannon Development have raised concerns about the future viability of the newly independent Shannon Airport.
Speaking at the Joint Committee on Transport and Communications Debate on the Shannon Aviation Services and Miscellaneous Provision Bill 2013, Owen Reidy of SIPTU said, “We have serious reservations and concerns about this prospect actually flying and working because we believe that ultimately, the success of this project is based primarily on planned growth on the airport site and on passenger numbers.”
He maintained that the projected numbers of the business plan for the airport does not stand up to the scrutiny of an appraisal by the Irish Congress of Trade Unions. He said the projected or planned growth from 1.39 million passengers in November 2012 to 2.5 million passengers by 2021 were based on assumptions that do not stand up to scrutiny in the current economic climate.
“We are concerned that if this does not work, the overall project may suffer and fail, notwithstanding the fact that we wish it well. Should that arise, we would be concerned about any implications for the workers concerned in both entities,” he said.
During the same discussion Neil Pakey, Chief Executive Officer of the Shannon Airport Authority, received support for his call to extend the borrowing facility limit for the group to € 100 million.
This, he claimed, would allow the Shannon group to deliver on the recommendations of the task force and to ensure it can be as competitive as its European peer group airport companies.
“As any such borrowings would be subject to business cases and ministerial consent, we should not have a more restrictive limit than our competitors, be they private or public operators,” he said referring to previous operators he worked for who borrow and invest in their airports.
Chair of the meeting Clare TD Timmy Dooley said the committee would forward the recommendation to the Minister.
Clare County Manager Tom Coughlan reiterated the need for an extended borrowing limit.
“For the group to carry out its functions as envisaged, and one hopes there will be wider functions than those envisaged at present, it must be in a position to finance itself and it must be empowered to raise the necessary capital and finance to achieve its objectives,” he said.
Mr Pakey also proposed the renaming of the new look SFADCo to Shannon Enterprise.