This article is from page 8 of the 2006-07-10 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 8 JPG
THE offer by Shannon Development to fund the Shannon Airport Authority (SAA) by €30 million over the first five years of its operation has been withdrawn, it emerged yesterday.
The move by Shannon Development makes the task for the SAA to produce a viable business plan more difficult. Already, the chair of the Dublin Airport Authority (DAA), Gary McGann has cast serious doubt on the SAA gaining full autonomy.
Last year, in response to moves by the Department of Enterprise, Trade and Employment to transfer the assets base of Shannon Development to the SAA, Shannon Development produced a counter-offer to fund the SAA with €30 million over the first five years of operation.
In announcing the new mandate for Shannon Development last July, Minister Martin noted the offer from Shannon Development.
The business plan is still being drawn up by the SAA. However the move by Shannon Development to shelve its proposed funding of the SAA now leaves a gaping hole in that plan.
Speaking after the publication of Shannon Development’s annual report, chief executive, Kevin Thompstone said: “Any funding issue that may or may or not exist for the airport authority will have to be resolved elsewhere. Funding of that magnitude to be transferred to the SAA is not provided for.
“We wouldn’t be planning any financial contribution to the SAA into the future.”
Mr Thompstone explained: “In early 2005, there was a proposal to transfer the assets base. We put forward an alternative funding model, which we worked out with the SAA and agreed how that would work and the amount involved.
“As it turned out, with the announcement of the new mandate, that proposal was effectively shelved at that point and as I understand it, the SAA is looking at alternative sources of funding.
“Things have moved on from the Shannon Development perspective. In our corporate plan, we have projects and initiatives that we need to deliver around the region that are going to be hungry for capital and funding is earmarked for those projects.
“The best way we can make a contribution to the airport authority is through development of flagship projects for the airport,” he said.