Shannon Development set to fight plan for break-up of regional body

SHANNON Development is fighting hard to defend the interests of the region in negotiations with the interdepartmental committee set up to implement the Enterprise Strategy Review Group’s findings on the future of the economy.

Its 2003 annual report will not comment however on the controversial recommendation that Shannon be broken up piecemeal and its duties handed over to Enterprise Ireland, Shannon Airport and Tourism Ireland.

Last night a spokesman for the group said it “had an open mind” about the report.

At the time of publication in early July it complimented “the vision put forward” in the document.

Sources suggest Shannon was targeted for break-up partly because it was too close to local vested interests, including politicians of all hues.

Some insight into where the group stands was contained in its response to the Enterprise Strategy Group’s report.

The regional development group said it had “played a central role” across the key areas of air transport, tourism and regional development for over four decades in the Shannon area.

The proposed break-up has sparked some of the most heated debate since the report came out.

Tánaiste Mary Harney was accused by SIPTU of trying to destroy the future of the country’s only regional development agency.

Its western regional secretary, Joe Cunningham, described as “scandalous” efforts by the Tánaiste to break up Shannon Development.

He was responding to the Tánaiste announcement that up to 100 jobs at Shannon Development are to be transferred to Enterprise Ireland as a result of the proposed transfer of EI to Shannon under the decentralisation plan.

Ms Harney said that it would make no sense to have two agencies in the same location performing the same functions.

Locals however saw the transfer of staff to EI as the thin end of the wedge for the region.

That decision is now up in the air, given the mounting difficulties with the decentralisation plan.

Ms Harney is also considering the transfer the control of Shannon Free Zone to the incoming Shannon Airport Authority in order to keep the authority financed.

Shannon Development generates €6 million in annual rental income from the zone and the break-up proposal has already been attacked by its chairman, Liam McElligott.

The group is expected to use today’s annual report launch as a further opportunity to put its case.