Shannon Development
A new mandate for Shannon Development was announced today, which will see the company exit some tourism and enterprise support activities to focus more on improving the economic development of the region.
Minister Michéal Martin said that Shannon Development will now take on an enhanced regional economic development role with an emphasis on addressing the needs of the less developed parts of the Shannon region.
He said the company will retain responsibility for all industrial property in the Shannon region and for developing and managing the Shannon Free Zone industrial estate.
The existing enterprise support functions carried out by the company in relation to both indigenous and overseas enterprises will be assumed by the national agencies, Enterprise Ireland and IDA Ireland.
The Minister explained that the new mandate was formed after widespread consultation with the Board of Shannon Development, and a range of interested stakeholders in the region, including the Mid-West Regional Authority, SIPTU and IBEC.
Shannon Development was set up 1959, with a specific mandate to support the development of Shannon Airport.
On the decision to decentralise the Headquarters of Enterprise Ireland to Shannon and the establishment of the new independent Shannon Airport, the Minister said a number of recent developments have dictated that the company's role should be reviewed and in March the Chairman submitted proposals for a revised strategy for the company.
In considering a future role for Shannon Development, the Minister said that he had also taken on board the Enterprise Strategy Group recommendation that Shannon Development should disengage from industrial development activities, which should be carried out by the national agencies, Enterprise Ireland and IDA Ireland.
Enterprise Ireland will now be responsible for the development of indigenous industry with Shannon Development staff transferred to that body. Promotion of the Shannon Free Zone will be assumed by IDA Ireland. The IDA already has responsibility for promoting inward investment to the rest of the Shannon region.
All of the interested parties in the region that I have spoken to agree that Shannon Airport is vital to the economic well being of the region', the Minister said.
'Shannon Development is ideally placed to support the new Airport Authority, and to complement its activities, particularly in its formative years and the company and I are in agreement that they should do so,'he added.
The Minister has asked the company to prepare a new corporate plan that will reflect the specific actions that will be undertaken under the terms of the new mandate.
Following the announcement of the change in the mandate for Shannon Development SIPTU called for the resignation of the Minister for Enterprise, Trade and Employment Michéal Martin.
The union accused the Minister of a breach of faith by announcing changes that had yet to agreed.
SIPTU General Secretary, Joe O'Flynn, said: 'following our last meeting, the Minister promised he would refer to us again before any announcement was made.'
'Only last week, I contacted the Minister's office to be told that the review process was continuing and that no announcement in relation to Shannon Development would be made before September', he said.
