Shannon Development asked the Government to create a new "Atlantic economic zone" in the Galway region just as the Minister for Enterprise, Trade and Employment, Micheál Martin, was deciding to reduce the development agency's mandate earlier this year.
In discussions with the department over a new role for the agency, the Shannon Development Board put forward a 10-year plan that would have seen it extending the area of its remit to cover Galway city and county to create an "Atlantic economic zone".
The board said the zone would generate €4 billion in investment and 20,000 additional jobs.
It also predicted that its plan would attract a further two million visitors to the region by 2015, with three million additional passengers to pass through Shannon and Galway airports by the same date.
The plan also envisaged an additional 25,000 tonnes in freight by 2015 in the region and Shannon airport having 40 global destinations.
Shannon Development said that it would use its asset base to deliver an Atlantic Development Fund of €€200 million over 10 years to finance economic infrastructure, seed strategic flagship projects and invest in commercial activities without recourse to the exchequer.
Last month, Mr Martin rejected the proposal and chose to withdraw any remaining enterprise activities operated by Shannon Development.
Unions at Shannon Development have agreed to oppose the changes.
Siptu's general secretary Joe O'Flynn confirmed yesterday that the unions are to meet with Mr Martin August 31st in a bid to have the new mandate for Shannon Development withdrawn.
Mr O'Flynn said that the transfer of promotion of the Shannon Free Zone to the IDA "is a huge bone of contention and will be resisted vigorously".
He said: "We will forcefully try to convince the Minister to withdraw his proposal. I am convinced that the Minister is willing to be flexible as he indicated prior to announcing his new mandate."
Mr O'Flynn said that Siptu would be making its own submission for Shannon Development's future, which he said would embrace change.
