Madam, - In response to David Smith's letter of February 10th, I confirm that as ISME is the independent voice of small and medium enterprise in Ireland, we fully support one of the best examples of free enterprise in Ireland, Ryanair.
It has created an international service industry in the face of opposition from governments, trade unions, monopoly air carriers and airport operators. The small business community and the travelling public recognise what Michael O'Leary is doing and vote with their feet. Indeed it is probable that Aer Lingus would have failed if it had not adopted some of the Ryanair model.
I agree that the Commission's decision takes the "state" out of the competitive arena. However, our view is that the state was running a commercial enterprise, Charleroi Airport. It was competing with other airports in the region. The commercial decision to work with Ryanair to develop virtually redundant airport into one handling 2 million passengers per year was a mutually beneficial one. The Commission's decision now puts Charleroi at a competitive disadvantage with privately owned airports. So instead of promoting competition, the Commission has potentially reduced it.
The problem is one of ownership. If Charleroi was privately owned, the arrangement with Ryanair would have been regarded as commercial. However, because Charleroi is owned by the state, some of the discounts were regarded as subventions. One possible answer is for the Commission to require all governments to divest themselves of state enterprises which compete with private enterprises, thereby eliminating the problem. However this would not get rid of subventions.
Ireland is riddled with examples. CIE, even Aer Arann, another pillar of free enterprise, could not run certain routes without subventions. Fáilte Ireland's promotion of tourism is indirectly subsidising every hotel and hospitality business in the country. So nothing is black or white in this area.
Despite what Mr Smith thinks, Michael O'Leary has achieved something nobody in the sheltered public sector has done. This country needs more people like him: entrepreneurs who are prepared to put their money where their mouths are, who take risks and create viable businesses like Ryanair. ISME will continue to help with this process in every way possible. - Yours, etc.,
Dr ROBERT BERNEY, Chairman, ISME, Kildare Street, Dublin 2.