Harney warns on future of Shannon Airport

The Tánaiste, Ms Harney, said yesterday there would be catastrophic effects for Shannon Airport if the Shannon stop-over was to go and something else not put in its place.

Speaking at a business lunch in Shannon yesterday, the Minister for Trade, Enterprise and Employment supported the idea of Shannon Airport having autonomy over its own affairs and competing against Dublin and Cork airports for business.

She said: "Shannon needs to have its own autonomy to be able to negotiate with airlines to get business and that is far more important than what might or might not happen on the Shannon stop-over."

Currently, in an agreement between the Irish and US governments, the stopover requires half of all airlines flying between Ireland and the US to allow passengers disembark at Shannon.

"If the Shannon stop-over was to go and something else not put in its place, it would have catastrophic effects for Shannon, so you have to put other proposals or alternatives in place first," she said.

Acknowledging that Shannon is crucial for regional development in the mid-west, Ms Harney said that healthy competition between the three Aer Rianta-controlled airports would prove remarkably successful.

Ms Harney cited the success of other airports that have enjoyed massive growth through low-cost carriers. She said that Shannon had to broaden its horizons in attracting tourists from other areas beyond the transatlantic sector.

Ms Harney also addressed the upcoming shake-up in the insurance sector, stating that it remains her number one political priority.

She said the Bill to establish the Personal Injury Assessment Board will be published before the summer.

She said: "We have done the review and the analysis on the issue and now is the time for action. By the end of this year, you will see fairly dramatic action.

Ms Harney said the establishment of the board, legislation dealing with exaggerated insurance claims and other initiatives "will be the most comprehensive package ever introduced" in the insurance sector.

"It will be introduced by year end and it will have a dramatic improvement in the rates of insurance," she said.

Ms Harney forecast that 50 per cent of the costs associated with insurance claims are legal costs and these will be eliminated through the work of the board.