This article is from page 12 of the 2006-04-11 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 12 JPG
THE Minister for Transport, Martin Cullen, has rejected the findings of a recent IBEC survey that the “Open Skies” aviation deal could result in companies exiting Clare and the Mid-West region.
He said he could see no reason why companies in the mid-west would be forced to relocate as a result of the new regime.
“The additional access to the US, as well as the increased numbers of US tourists into Ireland, will greatly benefit Irish tourism, aviation and business links generally in all parts of the country,” he said, in response to a Dáil question from Clare TD James Breen (Ind).
Minister Cullen rejected a further call from Deputy Breen to carry out an economic impact study into Open Skies.
In a survey published by the employers group last month, one in five companies based in the Mid-West said they would consider exiting Ireland, if there was a substantial reduction in flights arising from the forthcoming Open Skies arrangement.
Open Skies is due to commence in November, with the ratio of Dublin/ Shannon flights to the US, changing from 1:1 to 3:1 in favour of Dublin before an outright Open Skies regime starts in April 2008.
According to the IBEC report, the 30 per cent drop will cost the tourist sector along the west of Ireland €75 million each year and result in a 10 per cent drop in airport revenue.
Twenty five companies surveyed agreed that a substantial reduction in US services at Shannon “could trigger decisions to relocate the company from Ireland.
“A serious reduction in connectivity could, in the medium to long-term, affect future investment, with knockon implications for employment and the sustainability of facilities in the west,” the report states.
The Shannon Airport Authority (SAA) is anticipating a 30% drop from the existing 700,000 passengers on transatlantic routes.
Management of one of the largest companies in the Shannon Free Zone, US owned Avocent International employing 150 people, warned that access problems on US routes would effect future commitments to Irish operations.