Business group warns of significant job losses

Members of the Atlantic Connectivity Alliance (ACA), a coalition of business, tourism, union and other interests, yesterday warned…

Members of the Atlantic Connectivity Alliance (ACA), a coalition of business, tourism, union and other interests, yesterday warned of significant job losses and millions in lost tourism revenues if the Shannon-Heathrow route is not maintained.

At a press briefing in Shannon airport yesterday to launch the Business Case document for the retention of the Shannon-Heathrow route, the chairman of the Shannon branch of the Irish Hotels' Federation, Michael Vaughan, said if the route is not maintained, €50 million per annum in tourism revenues will be lost.

On the impact on business of the Aer Lingus decision, Bill Doherty, chief executive of Limerick-based medical device manufacturer, Cook Ireland, said: "If we don't have this connectivity with Heathrow, some of the functions that we do now cannot be done here. Speaking to some colleagues, they are talking of 10-30 per cent loss of employment in their companies if certain functions were to disappear."

Chris O'Donovan, midwest regional director of employers' group Ibec, said the decision has exposed the Government's regional development policy to "be in tatters" and called for a minister for regional development.

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Mr O'Donovan said the document was circulated to Cabinet and "is accurate and without exaggeration or emotion". Kevin Thompstone, chief executive, Shannon Development, described the document as a "rational, coherent, strong and a sensible business case for the retention of the Heathrow slots".

Mr O'Donovan said: "A managing director will not engage in exaggeration or emotion on an issue like this because of the responsibilities to workers, shareholders and corporate boards." He said Ibec was concerned that the Government inter-departmental group established to examine the issue had not been directly in contact with the business community, the ACA or any representative bodies in the midwest prior to its preliminary report to Cabinet yesterday. However, he added: "The next step is full engagement between representative bodies and interested groups in the midwest and we look forward to that."

Gordon Deegan

Gordon Deegan

Gordon Deegan is a contributor to The Irish Times