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SHANNON AIRPORT SHANNON
DEVELOPMENT CHANGE
MANAGEMENT TASK FORCE
REPORT
FINAL Version Dated 12/11/12
Redacted Version 03/12/12
Submitted to the Steering Group on
12th
November 2012
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Table of Contents Page No:
Executive Summary Conclusions and Key Recommendations 3
Section 1: Systems and Operational Procedures Working Group 11
Section 2: Human Resources Working Group 29
Section 3: Communications Working Group 35
Section 4: Proposals from IDA Ireland for the Shannon Region 38
Section 5: Proposals from Enterprise Ireland for the Shannon Region 46
Section 6: Proposals received from Fáilte Ireland for the Shannon Region 49
Appendix:
I Change Management Task Force Terms of Reference 53
II Members of Change Management Task Force 54
III Shannon Airport Authority Team Carve- out Activity 55
IV Shannon Development IT systems 57
V Shannon Developments Terms and Conditions 58
VI Shannon Airport Authority Terms and Conditions 61
VII Enterprise Ireland Core Services for Mid West Clients 66
VIII Forfás Regional Competitiveness Agenda: Mid West 83
IX Fáilte Ireland – Proposed Enterprise Structure for Mid West Region 84
X Frequently Asked Questions (FAQs) 85
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Executive Summary Conclusions and Key Recommendations
On 8 May 2012, the Government decided in principle to separate Shannon Airport Authority
(SAA) from the Dublin Airport Authority (DAA) and bring it together with Shannon
Development (SD) to form a new entity with a commercial mandate in public ownership.
The existing ownership of Cork Airport by the DAA would be maintained, with the DAA to
be renamed in the near future. The Government also decided that SD’s functions in relation
to indigenous enterprises and foreign direct investment would transfer to Enterprise Ireland
(EI) and the IDA respectively and the tourism functions, including the Regional Tourism
Offices, would transfer to Fáilte Ireland.
The Minister for Transport, Tourism and Sport and the Minister for Jobs, Enterprise and
Innovation established a Steering Group to bring forward proposals for the implementation of
that decision. Two Task Forces to assist the Steering Group in its work were also
established; the Aviation Business Development Task Force and the Change Management
Task Force.1
The Change Management Task Force established three Working Groups to enable it work to
the optimum level – the Systems and Operational Procedure Working Group; the Human
Resources Working Group and the Communications Working Group. The Task Force and the
three Working Groups2 met on a number of occasions throughout the latter half of 2012. This
Executive Summary is a compilation of the Task Force’s strategic recommendations along
with the main recommendations of the three Working Groups. The recommendations of the
three Working Groups are outlined in further detail in Sections 1 to 3 of this Report.
1 Refer to Appendix 1 for the Shannon Change Management Task Force Terms of Reference
2 Refer to Appendix 2 for a list of members of the Task Force and Working Groups
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The following are the conclusions of the Task Force and its Working Groups:
Task Force conclusions and recommendations
1. No material obstacles to the overall separation objective were identified by the
working groups. However considerable focus and effort will need to continue to be
applied over the next month at both SAA and centrally at DAA Group to achieve a
successful project.
2. The assessment supports either:
a. A two staged process with early (end of year 2012) separation of SAA from
DAA and transfer of SD activities to agencies – followed by subsequent
creation of an enlarged entity; or,
b. A single stage merger of the two bodies as a separate entity – albeit this
merger would in the first instance involve the joint operation of the IT
functions of SAA and SD for a period of time until merger synergies were
further identified. The subsequent task of merger and integration of systems
between the merged entities will depend greatly on the new entity’s structure
and remit.
The Change Management Taskforce recommend option (a) above as the preferred option.
3. NewCo will consist of three strands i.e. the activities delivered by an airport, activities
of the International Aviation Services Centre (IASC) and Property Management.
4. NewCo should have a clear remit with an uncluttered focus on the above mentioned
activities.
5. Potential opportunities and synergies resulting from the merger require further
exploration by the new Board of NewCo.
6. The initial focus should be maintained on project plans for separation of SAA and
divestment of activities from SD.
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7. A transition plan should be put in place to ensure the smooth transfer of SD staff to
other organisations and agencies.
8. For the successful delivery of the Communications Plan, it is essential that there is co-
ordination and involvement of all bodies concerned. Therefore, it is recommended
that a Communications Action Group be established.
9. A number of mediums should be used to facilitate communications to staff and other
stakeholders such as press releases; social media to facilitate two-way
communications; CEO briefings for staff; email; newsletters; Chamber of Commerce
events.
The following are the key recommendations of the Change Management Task Force under
the following categories
- Strategic
- Business Development
- Employees and Communications
- Critical Operations
Strategic Recommendations
1 There are no insurmountable issues that would stop the implementation of this project.
2 The corporate structure of NewCo should be one single organisation, combining the
separated SAA and the restructured SD which would integrate the functions of both
organisations with a focus on various activities outlined in this report. It is recommended that
this be completed by 1st of July 2013.
3 The Board of NewCo should be appointed without delay, as should a CEO designate.
4 The detailed organisation structure should take account of the need to manage the airport to
best international standards, develop and implement the strategy to create the IASC and to
manage effectively the property portfolio of NewCo.
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5. The Board, CEO designate and management should decide on the optimal structure for
NewCo.
Business Development Recommendations
1 In line with the Government decision of the 8th
of May 2012, it is recommended that SD
responsibility for the individual enterprise development relationships with indigenous and
overseas clients be transferred to EI and IDA, respectively, by January 2013.
2 It is recommended that SD’s associated responsibility for financial contractual relationships
(equity, grants, and preference shares) transfer to EI and IDA by January 2013.
3 It is recommended that responsibility for developing future clients be transferred to EI and
IDA from SD by January 2013.
4 It is recommended that IDA acquire immediately from SD such land and other property
assets as is agreed are necessary for it to implement its strategy for the MidWest Region.
5 It is recommended that responsibility for tourism development in the MidWest Region be
transferred from SD to Fáilte Ireland by January 2013, consistent with the guiding principles
for the two Task Forces as set out by the Steering Group.
6. It is recommended that the proposals for the development of Enterprise Ireland, IDA and
Fáilte Ireland services in the MidWest Regions as outlined within this report are acted upon
by these agencies from January 2013.
7. It is recommended that the development of the working relationship between IDA and
Enterprise Ireland and NewCo as outlined in the plans submitted by the agencies be adopted
to assist with the development of an aviation cluster at Shannon are acted upon by these
agencies from January 2013.
8. The Change Management Task Force recommends the adoption of the new Fáilte Ireland
organisational structure for the Mid-West Region.
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9. It is recommended that Shannon Heritage and Kilrush Creek Marina be included as a
wholly owned commercial subsidiary company of NewCo with a view to determining the
optimum strategic fit for Shannon Heritage and Kilrush Creek Marina within the state sector.
In order for NewCo to capture the best from the amalgamation of the business units across
the airport and the property divisions of Shannon Development and in creating the IASC, the
current and new management team should immediately seek to create synergies and a one
company culture between both organisations.
Employees and Communications Recommendations
1 It is recommended that the staff of DAA currently assigned to Shannon Airport be
transferred to NewCo on the vesting day.
2 It is recommended that, following the transfer of Shannon Development staff to Enterprise
Ireland, IDA Ireland and Fáilte Ireland, plans should be finalised for the movement of the
remaining Shannon Development staff to other organisations, including NewCo, over the
following six months.
3 It is recommended that a targeted VER scheme be offered to relevant staff in SD as soon as
possible.
4 It is recommended that a comprehensive communications programme be maintained with
staff and their representative throughout the change management process.
5 It is recommended that a Group be set up under the Chairmanship of the CEO of NewCo
including representatives from the Departments of Public Expenditure and Reform; Jobs,
Enterprise and Innovation; and, Transport, Tourism and Sport to look at the issue of pensions.
Critical Operations
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1 The key risk identified is the possibility that the airport would not continue to operate
seamlessly during the transfer process. It is vital that in transferring the management of the
airport to a fully independent NewCo, all systems, protocols and procedures are fully
operational and supported. Detailed recommendations are made in this regard in the section
entitled Systems and Operational Procedures Working Group.
2 Significant work has been identified and undertaken to mitigate this risk and further
specific proposals are presented to develop some of the IT systems, including financial
systems, which will be necessary to allow NewCo to operate independently.
Recommended Task Force High Level Project Plan
The Change Management Task Force recommends that the tasks outlined in the project plan
below be carried out in as short a timescale as possible, in order to minimise the uncertainty
which will be experienced by both staff of SD and SAA and by the customers of both
organisations. A detailed communications plan needs to be developed which sets out the
benefits of the realignment of enterprise development functions in the region, transfer of
tourism functions to Fáilte Ireland and the merger of Shannon Development and Shannon
Airport Authority in order to enable specific stakeholders to understand the timescales
involved and opportunities being created.
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Phase 1
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Phase 2
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Establishment of Working Groups
Sections 1, 2 and 3 below outline in further detail the work carried out by the three Working
Groups established by the Task Force - the Systems and Operational Procedures Working
Group; the Human Resources Working Group and the Communications Working Group.
Section 1: Systems and Operational Procedures Working Group
1.1 Objectives
This section aims to achieve the following objectives:
Provide the Task Force with an update of the Systems and Operational Procedure
Working Group’s review of the Infrastructure transition plans;
Provide details on the project planning and measures in place to manage and facilitate
the transition of infrastructure services; and,
Provide details on the recommendations and conclusions drawn by the Systems and
Operational Procedures Working Group following the review.
1.2 Systems and Operational Procedures Working Group Review Summary
1.2.1 Terms of Reference of the Systems and Operational Procedures Working Group
The Systems and Operational Procedures Working Group was tasked with the following
actions:
1. Evaluate what support systems are required for HR, IT, Finance and Airport specific
systems;
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2. Outline integration plans for the above systems, establishing if additional skills or
capital expenditure is required; and,
3. Recommend options for dealing with:
– The combining or outsourcing of key systems;
– The movement of systems from DAA control to SAA ownership; and,
– The next steps for shared services with DAA.
1.2.2 Summary of Findings - Shannon Airport Authority
The following summary is an overview of key findings from the Systems and
Operational Procedures Working Group review of SAA:
SAA has mainly stand-alone systems capability:
– 90% of key operational systems within SAA are operated and managed locally
(and hence will not require significant transition effort); and,
– No major concerns identified regarding transitioning these systems as they are
locally supported by external suppliers and separately licensed.
Therefore the focus of the review has been on the smaller subset of systems for
Shannon Airport Authority requiring decoupling from centralised (DAA group)
services (primarily back-office financial and general shared systems – e.g. email,
internet). To address the decoupling, the following measures have been taken:
– DAA Group have committed to providing a robust like-for-like IT solution
which is suited to the scale and complexity of a standalone Shannon Airport
Authority business. To this end DAA Group are providing significant
investment to achieve separation within required timelines;
– DAA Group have committed to significantly increasing its full year 2012 IT&
Telecommunications investment to facilitate the carve-out of the Shannon
Airport Authority IT environment.
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– A detailed project plan has been developed and aligned between SAA and
DAA to address the transition period and the subsequent separated entity;
– It is anticipated that transitional services (from DAA Group) will be required
for up to 12 months beyond vesting date (assumed for plan purposes as 1 Jan
2013);
– It is envisaged that establishment of separate systems (incl. financial) for SAA
can be achieved by year end based on the initial assessment; and,
– A subsequent transition agreement (currently in development) would focus on
provision of processing services currently provided by DAA’s Shared Service
Centre (Accounts Payable, Accounts Receivable, payroll processing etc) based
on a defined service agreement.
During the transition period, there is the potential for a further review of alternative
options for SAA in the area of transactional processing – e.g. resources from the
merger / outsourcing to be further reviewed as a potential support option.
SAA will require a number of services (Shared Service Centre, Retail, Procurement,
Asset Management and Development (AMD), Project Management and Planning) to
be provided on an interim basis in 2013 on a formal commercial arm’s length basis
supported by a Transition Services Agreement.
1.2.3 Summary of Findings - Shannon Development
The approach to the transition of SD is to focus on the two key streams of activity:
1. Transfer of activities to agencies; and,
2. Transfer of activities to NewCo.
Transfer of Activities to Agencies:
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The transfers of activities to agencies are not anticipated to give rise to significant
systems issues, based on prior experience of similar transfers, specifically:
– Receiving agencies to deal with functionality; SD focus will be on transfer of data,
records, knowledge (subject to any additional issues arising from the plans
requested from agencies); and,
– Issues are expected to primarily revolve around staff and activities (HR Working
Group focus) rather than infrastructure.
Merger of Activities in to the NewCo:
Similarly, the merger of activities in to NewCo is not expected to give rise to
significant infrastructural issues:
– Systems are managed and operated locally so dislocation from a central agency is
not a factor, subject to resources;
– Shannon Development and Shannon Heritage each have a number of specialised
and specific business systems that are mission critical to on-going operations and
revenue streams. These business systems must be sustained throughout the merger.
1.2.4 Summary of Conclusions of Systems and Operational Procedures Working Group
Following the review, the Systems and Operational Procedures Working Group came to
the following conclusions:
No material obstacles to the overall separation objective were identified by the
working group. However considerable focus and effort will need to continue to be
applied over the next month at both SAA and centrally at DAA Group to achieve a
successful project.
The assessment supports either:
– Two staged separation process with early (end of year 2012) separation of
SAA from DAA and transfer of SD activities to agencies – followed by
subsequent creation of enlarged entity; or,
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– A single stage merger of the two bodies as a separate entity – albeit this
merger would in the first instance involve the joint operation of the IT
functions of SAA and SD for a period of time until merger synergies were
further identified. The subsequent task of merger and integration of systems
between the merged entities will depend greatly on the new entity’s structure
and remit.
–
– Risks and potential opportunities exist for either option. However, a two
phase option would offer less risk and a more seamless transition, and is,
therefore the preferred option.
– In view of the preferred phasing plan which envisages the separation of SAA
first followed by the establishment of NewCo later in 2013 it is envisaged that
these specific issues would be the focus of the management team following the
initial merger phase
1.3 Systems and Operational Procedures Transition Progress
1.3.1 Overview
Systems infrastructure transition incorporates the broad areas of business information
systems, centralised / shared services and Shannon Development. This section provides
information on the approach taken for transitioning infrastructure services at Shannon
Airport Authority and the key control measures in place to facilitate a successful
transition.
As part of the overall project governance structure, a dedicated Shannon Airport
Authority Separation Project team has been mobilised and a Shannon Airport Authority
Separation Project Manager has been recruited on a contract basis to oversee the
implementation of the project on behalf of Shannon Airport Authority. A DAA project
team is also in place to manage the divestment of Shannon from DAA.
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Transition services/shared services and business information systems for the independent
operation of SAA represents one of the key work streams of the separation programme
(see diagram below).
Figure 1. Transition of Centralised Services as part of Project Workstreams
Separation of Shannon
Airport
1. Transition of Centralised
Services
2. Programme Management
3. Business Planning
4. Directors Report
5. Organisational
Design and Change
6. Building of Standalone
Services
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1.3.2 Transition of Centralised Services and Infrastructure
Design Principles
The following design principles have been applied when considering how best to
decouple centralised services:
Figure 2. Design Principles for Transition of Centralised Services
Shannon Airport will ultimately
operate as a completely
standalone entity from DAA Group
Transition services will be provided on a
commercial basis
No process redesign for temporary
processes (unless logistically or legally
required)
Transition period will be up to one
year or as agreed by both parties
Service provided at an equivalent
standard as of today
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Project Planning
Key project milestones have been identified for the transition of central services and
detailed plans are in development. The critical path for transition of services is
outlined below:
Figure 3. Key Milestones for Transition of Shared Services and Infrastructure
Progress Update
The following work has been carried out to identify and progress the Shannon Airport
Authority service requirements post separation:
A detailed Project Plan has been prepared for Shannon Airport Authority and is
being progressed in line with timelines identified. This plan is also aligned with
the DAA project plan.
September JanuaryDecemberNovemberOctoberAugustJuly
Key
Communication
Triggers
Corporate
Services
Shared Service
Centre
Retail
AMD
Prepare staff
listing (impacts
and staff to
transition)
Obtain Customer
and Supplier listing
Prepare Finance
and Accounts
Cutover Plan
Manage cutover (Employees, suppliers, customers)
Prepare service
and contract
catalogues
Agree whether possible
to extend services with
SA (e.g. HSSE,
procurement etc)
Issue letters to
insurance providers
to inform of
transition
Sign-off on
Go / No Go
for Retail
Go live with new
setup for Retail
and extension of
services
Develop retail
cutover plan
Prepare comms in
line with plans
Identify
impacted
Capital
projects
Prepare catalogue of
services for AMD/Asset
care/Operations &
Security
Prepare Retail
Position
Paper
Shannon Separation Project:
Shared Services and Infrastructure Transition Milestones
Holding
statement in
place for
reactive comms
Trigger:
Business
Plan review
to trigger
targeted
comms
Trigger:
Ministerial
Decision to
trigger
general
comms
Contact 3rd
party
suppliers to notify of
contract changes
(complex and
changing contracts)
Contact 3rd
party
suppliers and
customers to notify of
contract changes
(straighforward
contracts)
Communicate
Go-live Plans
Contact
unions re:
potential staff
changes
Team
communications
/ onboarding
Expected
Go-Live
Manage Financial Cutover
Sign off on SSC go/no go-
live decision ( considering
systems, staff, process,
suppliers and customers)
Support comms to impacted Retail staff Manage Retail Cutover
Sign-off on Retail
commercial
agreement with SA
Identify AMD
staff impacts
and agree on
to-be setup
Sign-off on
Go / No Go for
AMD
Go live with
any AMD
changes
Transition AMD Projects, services, data, etc
Prepare
contingency plans
for any critical
AMD projects
Go live with
extension of
SSC services
with SA
On track Off track
Legend
DelayedComplete
Prepare Legal Transition
Documents:
- Asset Distribution Agreement
- Transitional Service Agreement
- Licensing Agreement
Update
Insurances
for 2
airports
only
Prepare
procurement
position paper
Prepare SSC
position paper
Prepare AMD
position paper
Shared services
support IT in
system options for
Finance Sign off on
Transition model and
detailed IT
implementation plans
Go Live with
Transition
Model for SSC, IT,
HR
Obtain
sign-off
on IT risks
to proceed
Business case for
new IT setup
including Oracle
proposal and cost
Engage Oracle
and kick-off
implementation
IT to sign off on
IT go/no go-live
decision
Phased
IT Costs
Run SSC team training
Migrate Debtors /
Creditors and
Master Data to
SA
SSC to support UAT script design and testing for Oracle R12
Prepare SSC
impacts
summary
Go live with
extension of
Procurement
services with
SA
Sign-off on
Go / No Go for
Corporate
Services
Shared Services
to Support IT
Please refer to IT
plan (Section 3.3)
for IT schedule
Prepare for
extension to supply
of service post
vesting day (assign
resources etc)
Workstreams included here relate specifically to transition of central services.
Additional workstreams have been planned as part of the Overall Project Planning activities.
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Detailed Service Catalogues identifying all of Shannon Airport Authority’s
services have been prepared and reviewed for all areas. This review has identified
which services currently are, and will continue to be, performed in-house by
Shannon Airport Authority staff, by the DAA during the transition phase or by
other third parties.
Position papers are currently being finalised to ensure management have clarity
over how and what will be provided on a transitional basis from DAA to cover
Shared Services, Payroll, Procurement, IT infrastructure, Retail and Asset
Management.
Staff of the DAA, assigned to Shannon Airport have correlated all of the required
services of 3rd party contracts which will need to be novated, assigned or re-
contracted for SAA.
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1.3.3 Transition of Business Information Services
Overview
Significant progress has been made in relation to IT carve-out planning and there is a
clear view on how integrated systems will be separated. DAA Group has committed
to providing IT& Telecommunications solutions for SAA which are comparable (but
not enhanced) from those that are in use today. These solutions may be provided on
existing technology platforms or equivalent systems more suited to the scale and
complexity of a standalone SAA operation.
At a high level, the systems that are planned to be migrated or developed are as
follows:
“Oracle On-Demand” will replace the existing corporate ERP system which is an
earlier release of Oracle (essential “day 1” modules will be provided for 31
December 2012 and additional core modules are planned to be provided during
January / February 2013).
A physically and logically separated Network Infrastructure will be achieved (this
will be substantially completed by 31 December 2012 with DAA retaining
network management responsibility and access until separation activity is fully
concluded at the end of Q1).
Standalone Web capabilities are required (this will be completed for all core
services by 31 December 2012. Capability for Shannon Airport Authority to
provide its own “intranet” site will be provided in January 2013).
Desktop and Windows systems including Email, SharePoint, Office Systems and
Printing Services will be provided (this will be substantially completed by 31
December 2012 with the exception of “Smart Phone” email access which will be
provided on an interim basis on DAA systems and will be separated by the end of
February 2013).
On the basis that the Government decides to separate SAA from DAA, all Airport
Systems will be separated. (The majority of these systems are already setup on a
standalone basis or will be segregated by 31 December. The Aviation Marketing,
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Open Runway and Met Forecasting tools will be delivered for mid February
2013).
For the residual IT&T development and configuration work being undertaken post
vesting day in Quarter 1 2013, IT& Telecommunications will require access and
configuration rights to the systems being worked on. To this end, DAA will
continue to manage these specific systems until configuration / development is
complete.
DAA have also committed to configuring Shannon Airport Authority systems to
an equivalent of their current configuration and provide supporting “meta data”.
Furthermore, DAA will endeavour to provide access to relevant historic data to
Shannon Airport Authority (subject to legal advice). Where required, and data can
be practically migrated within required timelines, DAA will undertake to do so.
Where this is not possible or cost effective DAA will seek to provide alternative
manual access arrangements to the data.
As part of the IT&T project plans it is intended that DAA will provide
“development support” as part of the implementation process to ensure systems
delivered are properly stabilised. Upon completion of the implementation project,
ongoing maintenance and support will be the responsibility of SAA.
Progress Update
In order to manage the transition of systems and key data, the following control
measures have been put in place:
The high-level ‘IT Principles’ for the transition of systems and data has been
agreed between DAA and SAA. This includes overarching agreements on:
– Project approach, resource focus and time prioritisation;
– Replacement systems / changes to be comparable to current services;
– Key system changes, including Oracle replacement and the core modules to
be included;
– Data migration principles; and,
– Other key principles (full document available on request).
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– A dedicated IT Project team has been established and roles and responsibilities
have been defined.
A high-level project plan and key milestones have been identified for the IT
transition. Following recent developments and planning workshops with
suppliers, detailed IT transition plans are now in development.
Current progress within the IT work stream has delivered the following key
milestones:
SAA will legally require its own financial accounting system to manage the
new entity from vesting day. This requires a separate system which is properly
configured, tested, integrated and in place ahead of vesting date. To this end, a
contract has been placed with Oracle for Release 12 on Demand (OOD); this is
a hosted solution that will provide a standalone platform for SAA. This
platform will include core financial modules and their interface with back and
front end local business systems.
A complete listing of IT systems relating to operations at SAA has been
identified and switchover actions assigned. The majority of core operational
systems identified are operated and maintained in Shannon by SAA, these will
be integrated into new version of Oracle on Demand.
Agreement of principal activity streams (network design, shared systems,
desktop and web) has been reached with DAA. The cost and timeframe for
implementation is to be finalised. However it is envisaged that all core systems
will be in place by the 31st December 2012.
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Project Planning
In order to ensure an efficient approach is adopted for the transition of business
systems, each system has been categorised as high, medium or low priority:
Priority Definition
High Activities & deliverables that must be complete before vesting, and which
may cause a delay in the vesting date if impacted beyond tolerances.
Medium Activities & deliverables that should be delivered as soon as possible, but
which may be delivered after vesting.
Low Activities & deliverables which are not urgent, and which may be deferred or
dropped if needed.
A number of ‘high-priority’ systems have been identified as a result. The IT project
team have prioritised the management and transition of these systems and coordinated
the transition schedule to accommodate low priority systems post vesting day, where
possible in order to free up resources and alleviate time pressure. The IT transition
schedule is outlined in the following chart:
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Figure 4. IT Transition Schedule
1.3.4 Oracle R12 Implementation
Please note that a number of core modules in Oracle R12 have been identified as High
Priority (e.g. Payroll, HR, Financials, etc) and as such are scheduled to be
implemented prior to vesting day. Lower priority modules have been scheduled to be
implemented in January and February 2013 (e.g. Procurement, Inventory, Fixed
Assets, etc).
The current decision is to implement the Property module post vesting date in tandem
with the lower priority modules.
Sep 2012 Oct 2012O
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bNov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013
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Infr
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Contract & Negotiations (High priority)
Miscellaneous (Medium Priority)Retail System Including HHTsMove 3 Servers in Shannon to Cork (Quorium Machine * 3) - eBusiness & AOS
WEB (High Priority)File VistaAertelCar Park Pre-Booking
Oracle (Medium Priority)Oracle eBus - (Property)ODS - Oracle eBus (A/c Payable)ODS - Oracle eBus - (Inventory)ODS - Oracle eBus - (Procure)Oracle eBus (Fixed Assets)Oracle eBusines - (Cash Mgmt)Shannon Aviation Fuels (SAF)ODS - MainsaverODS - Mainsaver HHTs (Vision ID)
DIT 1.13
Oracle (High Priority)Oracle eBus - Prep / Scripting (in Prep for Delivery of R12 Vanilla Instance)Oracle eBus - Oracle on Demand Vanilla Build Oracle eBus - Financials (G\L, SysAdmin & Reporting …. Incl Web ADI / Disco)ODS - Oracle eBus - Financials (Accounts Receivable & Integrations)ODS - Oracle eBus - (HR)ODS - Oracle eBus - (Payroll)ODS - Clockwise
Networks & Infrastructure (High Priority)Design (All Networks & Infrastructure)FirewallsInternet Access
Networks & Infrastructure (Medium Priority)Network Corp & ARI ImplementationWireless Lan ShannonWireless Lan SSC, Retail & ARI
Air
po
rt S
ys
tem
s
Airport Systems (High Priority)Credit Card Authorisation (Pay on Foot)Access ControlPABX / RingmasterAS - Business Intelligence DAA View Changes (All)VMS Emulation Dublin & CorkDi-Diver (Splitting)SHE
Desktop & Windows (High Priority)E-Mail InternalE-Mail ExternalSharepoint (via 365)Blackberry / SmartphonesE-Mail Relays
WEB (Medium Priority)
Intranet
Desktop & Windows (Medium Priority)
DW - Server Upgrades
N &I (Low)
Lan
Guardian
AS (Low)
Eircom
Global Meet
Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013
Contract & Negotiations (Medium priority)
Contract & Negotiations (Low priority)
File SharesDomain Registration (+ Certificates)Domain Services Anti Virus (Desktop)
Printing Service (SAA & DAA Separate Services)Laptop Encryption
Remote Access VPNNTP ServiceTelephone Landlines
Web Infrastructure (Snn Web Site)Web Infrastructure (DAA Web Sites)
Oracle Stabilisation
Airport Systems (Medium Priority)Data Analysis Tool for Aviation MarketingBusiness IntelligenceOpen Runway Met Forecasting
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1.3.5 Interim Transitional Services
To aid in the smooth transition of operations, some key services currently provided by
DAA Group for SAA will be extended on a commercial basis for a fixed but interim
period. This provides SAA with some additional time, post vesting day, to prepare
alternative operational processes for the transition of these support services to a ‘stand-
alone’ model.
For each of the services extended, a catalogue of services has been identified and a
position paper has been agreed to outline the high-level approach to supplying these
interim services. The following sections outline the four service areas to be extended.
Shared Service Centre (SSC)
A need has been identified to extend some of the SSC services to SAA for a fixed
period. The services in scope include:
Payroll processing for Shannon Airport Authority;
Billing and credit control;
Supplier maintenance, invoice processing & payment;
Processing employee expenses;
SAA purchase and executive credit card administration; and,
Other operational administrative activities (including Car Park admin and Taxi
admin).
Some services currently provided by the SSC to Shannon are not required post vesting
and will be managed locally.
Central Retail Services
To support the transition of retail services and to allow SAA to continue to avail of
competitive group purchasing, retail services are being extended on a commercial
basis for an interim period. DAA Group will provide:
Buying (including forecasting, supplier management and negotiation);
Trading (including pricing/margins, reporting, etc);
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Distribution and Logistics (DAA Group to continue 3rd
Party Logistics
relationship); and,
Some store operations (including cash handing, daily audit, commercial
insights).
Asset Management and Development (AMD)
Within AMD there is likely to be a number of ‘open’ or “live” projects at the
envisaged vesting day of 31 December 2012. AMD Capital Services for SAA projects
started in advance of vesting day will be carried out by AMD (DAA Group). After
Vesting day, services can be extended on a commercial basis until project completion.
In order to transition these capital projects smoothly a number of services will be
required to support the completion and / or handover of ownership of these projects to
SAA. As such, it is in SAA’s interest to extend capital projects services in the
following two areas:
Planning (including master planning, statutory planning and aerodrome
standards); and,
Project Management (including design and contracts, project management
office services, etc).
Procurement
In addition to the services listed above, a need has been identified to extend
procurement services for a fixed period. This is especially relevant considering there
will be a number of supplier contracts to be transitioned and potentially resulting in a
retendering of 3rd
party services.
1.3.6 Transition of Shannon Development
Shannon Developments Information Systems Department currently provide and
support a centralised ICT infrastructure for SD, Shannon Heritage and Kilrush Creek
Marina. This arrangement enables the sharing of resources and skills while
maintaining the necessary separation of the legal entities. Services such as Financial,
HR, Retail, Property Management, network infrastructure, voice and desktop are
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shared. This close coupling of the companies continues to give cost effective
economies of scale and all the benefits of shared services.
The servers and backend business IT systems in place in Shannon Development are
considered more than sufficient to operate the property and business systems. The
majority of SD servers have been virtualised and this gives SD flexibility in terms of
resourcing the processing needs and allow SD to cost effectively add capability if
required.
While it is somewhat difficult to predict the diversity of the requirements of NewCo,
it is reasonable to assume that the Business Systems, including Property Management
System, are considered to have capacity to take on significantly more processing
requirements, if required.
SD provides payroll administration for Shannon Heritage staff and operates other
services such as H.R., Finance, AP & AR and they perform the stock procurement for
Shannon Development Tourism Information Offices (TIOs). These services are
performed by Shannon Development on behalf of Kilrush Creek Marina.
Progress Update
The approach to the transition of Shannon Development is to focus on the two key
streams of activity:
1. Transfer of activities to agencies; and,
2. Transfer of activities to the new Shannon entity.
1. Transfer of Activities to Agencies:
The transfer of activities to agencies is not anticipated to give rise to significant
systems issues, based on prior experience of similar transfers, specifically:
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– Receiving agencies to address functionality within their plans to receive the
activities of SD; SD focus will be on transfer of data, records, knowledge (subject
to any additional issues arising from the plans requested from agencies); and,
– Issues are expected to primarily revolve around staff and activities (HR Working
Group focus) rather than infrastructure.
2. Transfer of Activities to NewCo:
Similarly, the transfer of activities to NewCo is not expected to give rise to significant
infrastructural issues, as the systems are self contained and managed and supported
locally. The subsequent task of merger and integration of systems between the merged
entities will depend greatly on the new entity’s structure and remit and whether it is
assessed by the new management team that significant synergies can be achieved by
merging the standalone IT structures. This can be viewed as a decision with upside
potential for the new entity as the business plans will be based on maintenance of
existing systems, with the potential for NewCo to achieve subsequent synergies.
Nevertheless, merging the critical systems from all entities will bring its challenges.
– As mentioned above, as systems are managed and operated locally, dislocation
from a central agency is not a factor, subject to resources;
– The key Shannon Development property management system has recently
undergone an upgrade and work is taking place to revise the asset register in order
to facilitate functionality for invoicing and reflect the current state; and,
– Shannon Heritage and Kilrush Creek Marina should be included as a wholly owned
commercial subsidiary company of NewCo with a view to determining the optimum
strategic fit for Shannon Heritage and Kilrush Creek Marina within the state sector.
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Section 2: Human Resources Working Group
2.1The Human Resources Working Group considered the following issues, taking into
account the key message that the new company is mandated to conduct its business in a cost
effective and profitable manner:
Organisational Structure for new organisation and roles for main Departments;
Key Actions to help integrate various functions and how the current structure
helps/hinders this organisation in accomplishing change;
Issues relating to IDA, EI, Fáilte Ireland type functions moving from Shannon
Development.
2.1.1 Organisational structure for the new organisation and the roles for the main
Departments
2.1.2 We recommend that the new organisation should consist of three strands based on
consideration of the human resources issues relating to moving to a new entity and the
potential to drive business generation and ensure a successful commercially focused
entity.
The Three Strands
The activities delivered by an airport – Airport Management
A focus on activities for an IASC
Property Management
2.1.3 Rationale for this structure:
We see that the focus for the new organisation should be clear and uncluttered in its remit as
follows:
Airport Management: To drive passenger and cargo volume through Shannon
Airport Authority safely & profitably and to do this there are legally required
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functions that have to be in place and staffed appropriately for the basic management
and delivery of an international airport.
International Aviation Services Centre (IASC): To manage the activities and
support the marketing efforts of the State Agencies for the Centre, including those
activities identified for the Airport. This focus will be important in securing a centre
of aviation excellence in Shannon and subsequently drive commercial and economic
success in the area
Property Management: To market the assets, including those of the Airport, at
value for money for the Exchequer in conjunction with the other agencies; to provide
for investors and ensure constant market readiness of key property assets in the
Gateway Locations of Shannon and Limerick by ensuring that proposed property
solutions meet the equivalent standards and specifications of the property portfolio for
the rest of the country and to offer solutions of the appropriate size, quality and price
to match clients intended business needs; As landlord to existing clients in the region,
it will be important that NewCo is fully cognisant of the terms and conditions of client
company leases and ensures that diligence and attention to the needs of these specific
tenants will be paramount for the delivery of business into the Region into the future.
The scope and size of the property portfolio may necessitate a clear and unambiguous strand
but equally this could be part of the overall business development activity for the new
company. A Business Support Services should also be included in a new structure which
would provide efficient, cost effective services in Communications & Planning; Finance; HR
Management; Procurement & Information Systems to all of the above. This overall
resourcing of the structure and the management and integration of the strands will ultimately
be a matter for the new management to decide.
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2.2 Key issues to help integrate various functions and how the current structure
helps/hinders this organisation in accomplishing change
2.2.1 Integration issues
There are two issues that we see as potentially challenging to the establishment of a viable
working new entity
Current staffing resources and associated costs
The establishment of a standalone Airport and its business plan running in
parallel to the establishment of a new entity
There are currently 109 staff (106 FTE) posts in Shannon Development and a further 223
staff in Shannon Airport Authority, (excluding seasonal workers and Shannon College of
Hotel Management). NewCo will consist of the activities delivered by an airport with a focus
on the activities of the IASC. There will be a number of staff required to resource the
management of the IASC and manage the property portfolio, a number of which should be
drawn from the existing Shannon Development staffing complement due to the knowledge
and expertise already there. We do not see the necessity at the moment for further
recruitment, unless there are technical competencies required that are not currently available
in-house. However under the recommended structure, staffing associated with the IASC will
be focusing on supporting the marketing efforts of the other state agencies, clarified through
an inter-agency Operating Framework. It will be for the new management team to identify
the relevant resources for the Property Management and IASC with due consideration given
to the existing compliment of staff currently involved in these activities at both Shannon
Airport Authority and Shannon Development.
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Conclusion and Recommendations:
2.4 Human Resources Working Group Recommendations
1. The new management team for the new entity should formulate the deliverables and
agree the resources required for the new entity.
2. The Business Support Services should be collectively provided to all staff in the new
entity. This will be necessary to avoid duplication and increase on costs. However
this should be provided in a traditional sense during the transition period to ensure a
smooth transition and the new management team then needs to decide on the most
cost effective option for the delivery of Business Support Services:
Shared Services Centre;
Outsourcing some or all of these services;
Fund a service provider on a retainer basis – as and when needed, where major
issues may occur.
3. Post separation from DAA and in order to maximize synergies, activities related to
business generation from Shannon Airport Authority and those of the new company
should be aligned to ensure commercial viability and again, reduce duplication.
4. Shannon Heritage is included as a wholly owned subsidiary commercial company and
that post establishment of the new company, it would engage with the Department of
Transport, Tourism and Sport with a view to determining the optimum strategic fit for
Shannon Heritage within the State sector.
5. Current FDI, Enterprise and Tourism activities from Shannon Development will be
transferred to other State agencies with agreed arrangements for transfer clarified
through the action plans developed by the agencies. Discussions have taken place
with the agencies regarding current staff working in these areas.
6. Consideration needs to be given to Shannon Development’s regional structures with
the possibility that relevant activities be transferred to Local Enterprise Boards/Local
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Authorities. The Departments involved need to discuss the potential for this to take
place to ensure that the current level of activity is maintained.
7. It is likely that staff will become displaced in the move towards a new company and
therefore serious consideration should be given to the provision of an appropriate exit
package proposed by DJEI for approval by Department Public Expenditure and
Reform (DPER). There are at least 25 staff with in excess of 31 year’s service, aged
51 plus and staff in this category in Shannon Airport Authority should also be
included for consideration.
8. Options for the re-deployment of staff should be explored as a priority through the
Public Appointments Committee, DJEI, DTTAS and D/PER for staff affected to
allow for maximum flexibility in the re-allocation of existing staff.
9. The current discussion between the DAA, Aer Lingus and the Trade Unions regarding
pension arrangements will need to be resolved first before a final decision on the
funding arrangements for staff pensions can be finalised. The Department of Public
Expenditure and Reform need to agree the mechanism for how the funding of the
existing pension liabilities for Shannon Development will be managed, considering
funding for some of this liability is currently derived from Shannon Development’s
own income from Property. Whilst it might be simplistic to assume that pension
rights could be transferred automatically with individuals, the liability and variation in
schemes would make this difficult and we recommend that the relevant HR
Departments with a member from the DJEI, DTTAS and D/PER, consider how the
various schemes might operate.
10. From a Change Management perspective, prior to any transfer or movement of
activities, the staff should be informed of this movement and the implications for
them, even if this is on a phased basis in terms of movement of activities. This has
been highlighted on the action plan as part of this group and should be delivered by
the relevant management teams to those affected.
11. Shannon Airport Authority needs to have moved to a structure that will ensure
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operational readiness on vesting day and once this has been reached, consideration
then needs to be given to the staffing compliment associated with the new company –
for example in the area of Business Support activities for the new entity and how the
existing Aviation and Marketing activities at Shannon Airport Authority links with
the IASC. This structure should be a matter for the new management team.
12. DAA staff assigned to Shannon Airport who are involved with the College of Hotel
Management and its activities should transfer to NUIG, to reduce costs and headcount
for the new entity, in line with current discussions.
13. Where it is likely to apply, in the case of transfer of staff to other state agencies it
should be a matter for management of the receiving agency, in the context of
legislative protections that exist and in consultation with relevant trade unions, to
deal with the issue of integrating staff into the organisation including terms and
conditions of employment, The Human Resources Sub group has collected sufficient
data for the receiving agencies to get a sense of the terms and conditions of staff.
14. Where staff transfer to other state Agencies, the implications in relation to the
Employment Control Framework (ECF) and the resourcing budget for staff for the
receiving agencies needs to be addressed. It will be impractical, under the current
climate, to see how the other agencies could absorb staff without an associated
increase in ECF and payroll and pension budget. There may be more scope for staff to
be absorbed into other agencies if the ECF and associated staffing costs were to be
secured. Any outstanding pay and pension related industrial relations issues should
be concluded prior to staff transferring to agencies.
15. In the case of transfer of staff to NewCo, terms and conditions for staff in this new
company should be determined by the new management team subject to whatever
legislative protection may exist and in consultation with relevant trade unions.
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3. COMMUNICATIONS WORKING GROUP
3.1 Aims: The plan serves as a draft template for planning and executing key
communications around the Government decision to “…separate Shannon Airport
Authority from the Dublin Airport Authority and bring it together with Shannon
Development to form a new entity with a commercial mandate in public ownership.”
3.2 Objectives: The purpose of the Communications Plan is to contribute to the success of
NewCo by delivering the right communications, at the right time, to the right audience.
It will ensure that the concerns of staff are addressed and that the positive benefits of
NewCo are conveyed to stakeholders. It will also clarify how the functions of the State
Agencies (Fáilte Ireland, Enterprise Ireland and IDA Ireland) will be delivered in the
Shannon region.
3.3 Communication Principles: In devising the Communications Plan a series of
communications principles were agreed. Among these is the principle that clear,
concise, fact-based information needs to be delivered openly and in a timely manner.
There is a need to ensure that communications contain consistent core messaging,
deliver tailored messages to target audiences and dispense effective communication to
all key stakeholders. Staff and unions concerned should be prioritised in the roll out of
information, for example face-to-face / one to one delivery is important where messages
contain job sensitive information.
3.4 Strategy: The Plan aims to communicate the Vision and steps involved in establishing
NewCo. It highlights the importance of keeping stakeholders updated on progress and
will work to secure their support. It will help generate a readiness for change among
staff. It will outline a draft ‘living’ Communications Plan which can be populated as
information becomes available.
3.5 Audience/Stakeholders: Shannon Airport Authority staff; Shannon Development staff;
DAA staff (based in Shannon); DAA; Social Partners incorporating Trade Unions;
Media – local, regional, national and international (particularly business aviation
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media); Government Departments; Steering Group; Aviation Task Force; Change
Management Task Force; Local, regional and national elected representatives; Fáilte
Ireland; IDA Ireland; Enterprise Ireland; Existing and potential Shannon Airport
Authority clients – national and international; Shannon Airport Authority
concessionaires; Shannon Development clients; Airlines – national and international;
Aviation Industries – national and international; Business groupings including
Chambers of Commerce and IBEC; Shannon region tourism trade and Shannon region
business community; Competitors; Local Authorities; General public - local, national
and international.
3.6 Opportunities and Challenges: The Plan will help articulate positive messages for
example, that NewCo will deliver new aviation related jobs and new business streams
for Shannon. It will highlight the fact that NewCo will contribute to the economic
prosperity of the Shannon region and be commercially driven. It will create certainty
and a sense of positive anticipation among the business community about NewCo.
NewCo will face many challenges the most imminent are: The need to alleviate the
current uncertainty around the future viability of Shannon Airport Authority among key
stakeholders (e.g. commercial airlines who are making decisions about future routes);
the need to stem the loss of business opportunities (e.g. route development, MRO,
private jet business) due to perceived uncertainty on the future of Shannon Airport
Authority; the need to address staff concerns and anxieties about their future and to
motivate staff during the ‘business as usual’ period.
3.7 Key Messages:
A bright and exciting future for NewCo, its staff and the Region *
NewCo has potential to deliver significant new aviation related jobs *
NewCo will prioritise the delivery of new routes for Shannon Airport Authority
Business as usual at Shannon Airport Authority – with particular emphasis on
articulating this message to the international and national aviation industry who need
reassurance
Plans to expand aviation cluster at Shannon
The competitive advantages of NewCo (tax, etc)
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NewCo is on track to meet timelines
NewCo will be cheaper, better, different (messaging needed to emphasise unique
selling points)
NewCo’s promise of excellence
Fáilte Ireland, Enterprise Ireland and IDA Ireland have exciting action plans for the
delivery of jobs and tourism development in the Shannon region
* These are suggested core messages to be delivered as part of all communications.
Suggestions for other possible news angles and messages are contained in the
Communications Actions Template.
3.8 Delivery of the Communications Plan: For the successful delivery of the Plan, it is
essential that there is co-ordination and involvement of all bodies concerned. Therefore,
it is recommended that a Communications Action Group be established comprising
representatives from each of the various departments and organisations involved in the
change management process. Each organisation’s representative would be responsible
for the delivery of the message within their own organisation and would work together
to disseminate messages to key stakeholders as appropriate. Sequencing of messages
will be crucial to build goodwill within the various sectors.
3.9 Examples of Mechanisms/Channels for Communications: Staff meetings; press
releases/statements; conferences (trade and media); social media to facilitate two-way
communications e.g. Shannon Development staff blog; CEO briefings for staff; email;
newsletters; advertising; face to face meetings; websites; promotional material;
seminars; workshops; speaking opportunities e.g. Fáilte Ireland industry briefings,
Chamber of Commerce events; publications, etc
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Section 4: Proposals received from IDA Ireland for the Shannon Region
IDA Ireland (IDA) is the State agency responsible for the winning of foreign direct
investment (FDI) into Ireland. The Agency employs 254 people, is headquartered in Dublin
and has a network of offices in Ireland and in key international markets. Today, there are
nearly 146,000 people directly employed in over 1,000 client companies in Ireland. In
addition, FDI generates approx. €115 billion in estimated exports and accounts for a total of
250,000 direct and indirect jobs (1 in every 7 jobs).
Shannon Development currently has responsibility for FDI within the Shannon Free Zone
(SFZ). In light of the recent Government decision, it is proposed that this responsibility will
transfer to IDA. This document describes the current status of FDI within the SFZ as well as
outlining the future strategy for development of the sector within Shannon and in the wider
Mid-West region.
FDI in the Shannon Free Zone (SFZ)
As per the Forfás employment survey in November 2011, Shannon Development had 55
client companies in the SFZ employing a total of 5,337 people; the equivalent employment
number was 5,468 in 2010 and 5,689 in 2009. Employment in 2011 in IDA’s portfolio in the
rest of the Mid-West (comprising Limerick, Clare and North Tipperary) was 8,096 people in
53 companies, while total employment nationally was 145,878 in 1,004 IDA client
companies (see Tables 1 & 2 below).
Table 1
Location No. of Companies Total Employment
Shannon Free Zone 55 5,337
IDA 1,004 145,878
Ireland: Total FDI 1,059 151,215
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Table 2
Location No. of Companies Total Employment
Shannon Free Zone 55 5,337
IDA Mid-West 53 8,096
Total FDI in Mid-West 108 13,433
IDA Strategy in the Mid-West
IDA’s Mid-West region comprises Counties Limerick, Clare and North Tipperary. In the
context of the wider national strategy and in line with the NSS, IDA is focused on advancing
the economic development of the region primarily through the linked Gateway of
Limerick/Shannon. Limerick is the focus of the international marketing effort. The key focus
is to secure investments in advanced manufacturing, research development & innovation
(RD&I). The IDA also focus on attracting global business services in Information and
Communications Technology, Life Sciences and Food, Content Industry, Consumer and
Business Services, International Financial Services and Engineering, Diversified Industries
and Clean Tech. The IDA continues to place a very strong focus on a transformation agenda
to retain and grow companies in the Mid West Region.
The benefit of the transfer of responsibilities for the 55 FDI companies will be to:
Provide access to IDA’s suite of strategic programmes and schemes - RD&I, Training
and Environmental Aid.
Develop a transformation agenda to ensure the strategic importance of the respective
Irish operation to the parent company and to identify further investment opportunities
for which Ireland and the Mid-West Region can compete.
Allow for overseas marketing of the full Mid-West region.
Provide the opportunity for stronger engagement at senior corporate level.
Bring the 12 FDI companies with operations in Shannon and elsewhere in Ireland
under the management of one development agency.
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Mid-West – The Value Proposition
IDA client companies have announced 11 investments in Limerick with a combined potential
of 927 jobs since January, 2011. IDA is confident of winning further investments.
Regional Critical Mass:
Limerick is Ireland’s third largest centre in terms of population, with a population of
460,000 within a 60 km radius. It will continue to face international and national
competition based largely on the preferred decisions of the prospective client companies
and the inclination of these companies to gravitate to the larger centres. This necessitates
enhanced regional cooperation at all levels. Local government will need to engage with
stakeholders to promote the strengths of the region while continuing to address
weaknesses and deficiencies in Limerick/Shannon and its immediate environs.
Heretofore, the scale of the city was limited by its old boundaries. However, the current
process of implementation of the plan to amalgamate Limerick City and County, along
with the development of Shannon, will help to make Limerick/Shannon as competitive as
other Gateway locations.
Track record
The combined FDI portfolio will comprise 108 companies employing 13,400 people
across key sectors with a spread of global leaders in Life Sciences (J&J Vistakon, Stryker,
Roche), ICT (Intel, Dell, Analog), Financial Services (GE Capital, Northern Trust,
Genworth).
IDA client companies have announced 11 investments in Limerick, with a combined
potential of 927 jobs, since January 2011.
Talent
Limerick has two 3rd level institutions – University of Limerick (UL) and Limerick
Institute of Technology (LIT) – with a total of 17,000 students and over 4,400 graduates
per annum.
Strong pool of Management talent with extensive MNC experience.
Infrastructure
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Completion of the new Dublin-Limerick-Shannon motorway has significantly decreased
commuting time to the capital and greatly assists in marketing the region.
Shannon Airport Authority, with daily transatlantic flights to New York and three flights
per day to London Heathrow, enhances the attractiveness of the Mid West Region and the
continuance of these connections is essential to guarantee easy access.
Excellent telecommunications and broadband connectivity.
Highly developed and extensive business support and services infrastructure.
Value Proposition Enhancement
Marketing
There is a need for enhanced regional co-operation and leadership at local government
level and amongst stakeholders in the Region to support Limerick/Shannon as the
Gateway of the Region. IDA acknowledges recent Government decisions and the
formation of steering groups specifically addressing Shannon Airport Authority and the
aviation sector.
All stakeholders need to unite behind agreed marketing messages on the attractiveness of
Limerick as a location for FDI. Officials need to display leadership in the development of
the City.
Infrastructure
The provision of suitable property solutions is a key requirement for winning
investments. This issue is highlighted separately in the following section of the document.
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Property Availability in the Region
IDA has national responsibility for a property portfolio to support agency-assisted
enterprises, including its own FDI clients and those of its sister agency, Enterprise Ireland. Its
focus is on creating and developing appropriate property solutions.
IDA’s property remit does not extend to the Mid-West, with Shannon Development having
full responsibility for the property portfolio across the Region. The proposal currently under
consideration is that the entire Mid-West property portfolio will be rolled up into NewCo, the
new merged entity which will have responsibility for the development of Shannon Airport
Authority. While it is entirely understandable that the land bank around the airport, including
the Free Zone, would be vested in the new entity, it is vital to ensure that the needs of current
and potential FDI investors are met in the Limerick Gateway.
The essential requirement for FDI clients is the ability to source solutions of the appropriate
size, quality and price to match their intended business needs. There are three potential
locations for such clients in Limerick – City Centre, National Technology Park (NTP) and
Raheen – with NTP and Raheen in the ownership of Shannon Development. Additionally,
Raheen Business Park is the home of a number of IDA client companies e.g. Analog, Stryker
and Dell. Given the nature of the investment for which Ireland competes today, the NTP
with its Strategic Site and existing global corporations in both manufacturing and business
services activities is Limerick’s key location for attracting foreign direct investors.
Consideration, therefore, should be given to including the NTP and Raheen Business Park in
the same State-owned property portfolio as the rest of the key national strategic property
offerings available to major FDI investors in Gateway locations.
Shannon has an ample supply of office and manufacturing space in the Shannon Free Zone.
However, Limerick will require investments in new office and manufacturing developments
to compete effectively for future FDI. The developments should be located where there is an
existing cluster of overseas companies and adjacent to the University of Limerick at the NTP.
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Additional Staff Resources
IDA will require an additional 6 staff (business development, grant, legal and compliance)
over and above the organisation’s Employment Control Framework (ECF) approved
complement of 254 thus increasing IDA’s approved staff numbers to 260 employees. Should
the additional 6 people be located in the Mid West Region they should be housed together
with IDA’s existing staff of 3 in the NTP in Limerick. Park House, which is in the ownership
of Shannon Development and is currently vacant, could adequately house all 9 staff.
Actions and Timelines
In addition to the continuing activity as detailed above, specific additional initiatives that
could be addressed over and above the continuing national effort are as follows:
NewCo: IDA has national responsibility for marketing, approving
and grant aiding FDI companies across all sectors including
Aviation. IDA will continue to approve, grant aid and market to
the aviation sectors including MRO, aircraft leasing, pilot training
and new related activities in the Shannon Region to existing and
potential clients globally with support from NEWCO.
Short Term
IDA represented on
the Task Forces
Existing Business: Ensure that all FDI companies in the Shannon
Free Zone are handed over seamlessly and these companies have
early engagement with IDA both at corporate and local
management levels to focus on winning additional business.
Short Term
IDA commits to
meeting all companies
locally and overseas
as a matter of urgency.
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Property Solutions: In order to compete effectively for new
investment it is essential to develop a suite of office and
manufacturing buildings in Limerick to compete effectively for
future FDI.
Short Term
Enhancement of Gateway Value Proposition: Early engagement
with the Limerick City/County Manager and Clare Co. Manager to
develop a concerted Gateway Value Proposition for
Limerick/Shannon by highlighting its strengths and by developing
an agenda for improvements in the Region.
Medium/Long-Term
Urgent but will
require on-going
adaptation
Short Term = Immediately but up to 1 year Medium /Long Term = within 3 years
Conclusion
The IDA welcomes the assignment of FDI companies in the SFZ. The Government decision
now provides opportunities to re-energise the Mid-West Region through the integration of the
existing base of 55 companies in the SFZ into IDA sectoral divisions. This will give
companies access to IDA’s suite of strategic programmes (e.g. Transformation and Client
Development) and schemes (RD&I, Training and Environmental Aids). It will also provide a
focus on developing stronger engagement at senior corporate levels to ensure the strategic
importance of the respective Shannon operation to the Parent and to identify any further
opportunities for investment that Ireland and the Mid-West Region can compete for. It will
bring FDI companies with operations in Shannon and elsewhere in Ireland under the
management of one development agency. Furthermore, it will allow for overseas marketing
of the integrated region to greenfield clients and to the recently established business sector
within IDA - Emerging Business companies. Once IDA has engaged at both corporate and
local management levels, the IDA will conduct a risk and opportunities assessment of the
SFZ portfolio.
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A key driver in successfully winning FDI business remains the availability of world class
property solutions for the targeted sectors and activities. It will be critical that any new entity
ensures the property portfolio of the NTP, Raheen Business Park and Shannon meets the
equivalent standards and specifications of property solutions for FDI in Gateways around the
country. As already outlined, the provision of suitable office and manufacturing
developments within the Limerick Gateway are viewed as prerequisites for the delivery of
FDI business into the Region into the future.
Finally, IDA will work to ensure that the timelines of year end are met for the achievement of
the new mandate in the SFZ and looks forward to continuing the close working relationship
with Shannon Development to deliver this objective.
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Section 5: Proposals received from Enterprise Ireland for the Shannon
Region with Recommendations
5.1 Core Services to be provided, Physical Presence and Staff Numbers
In January 2007 following a Government decision Enterprise Ireland assumed responsibility
for supports and services to indigenous clients in the Mid West region, with the exception of
the Free Zone. Following the assumption of this responsibility Enterprise Ireland undertook a
significant review of its presence in the region, and after this review took the following
actions:
Established the Enterprise Ireland Regional headquarters in the Mid West;
- The Mid West Region in Enterprise Ireland covers the counties of Clare;
Limerick; North Tipperary and Kerry. The Mid West Regional headquarters is
located at 4500 Atlantic Avenue, West Park, Shannon, Co. Clare, where
Enterprise Ireland’s National Regional Headquarters is also located. Enterprise
Ireland also has a sub–office at 13/14 Denny Street, Tralee, Co. Kerry including
meeting rooms, which are used by Kerry CEB for client meetings, in addition to
Enterprise Ireland’s own needs.
Aligned staff based in Shannon to work on our regional development strategy, and
on other national/international enterprise priorities;
- Enterprise Ireland has approximately 50 staff physically located in the Shannon
office. In addition to the Mid West Regional team, we located the CEB Co-
ordinating Unit and elements of the following units here: HPSU division;
Established Clients division; Research & Innovation division; Framework
Programme 7 National Contacts; Small & Micro Business division; Potential
Exporters division; Client Service Unit and Market Research Centre personnel.
- The Tralee sub-office is staffed by 4 staff (FTE). The functions covered include
Small & Micro Enterprise; Regional Development; HPSU; Client Service Unit
and Research & Innovation. Access for clients to Enterprise Ireland’s Market
Research Centre facilities is available in both the Shannon & Tralee offices.
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Integrated the client companies within the region into existing structures to ensure
new clients had full access to the Enterprise Ireland client offering.
- The supports and services offered in the Mid West region were/are identical to
those provided to all Enterprise Ireland clients on a national basis.
Commenced equity investment and grant aiding to clients while working
increasingly with third level institutions in the region to promote enterprise and
commercialisation of research.
- Appendix VII details the core services and supports that Enterprise Ireland has
provided since 2007 and is currently available to clients in the region. These will
now become available to the remaining indigenous clients of Shannon
Development based on the Free Zone.
The transfer of the remaining forty three indigenous clients of Shannon Development will
follow a similar smooth transition, as most operational issues around the transfer were
previously addressed in 2007. In essence, the transfer of these clients is just the final phase of
a process that commenced in 2007.
Enterprise Ireland will undertake to put systems in place with Shannon Development to
ensure that this process is fast and efficient for this residual client group across existing
platforms, and within the resources of Enterprise Ireland. Enterprise Ireland plans to liaise
directly with these client companies to communicate the process of transfer, and discuss the
Enterprise Ireland client offer available to them. The smooth transfer of grant and equity
holdings of this cohort of clients will be organised by Enterprise Ireland’s Equity and Grants
departments, in collaboration with their Shannon Development counterparts. This will take
place once client transfer timeframes have been agreed.
5.2 Additional Services – Aviation Sector Plan
Enterprise Ireland has a number of specific initiatives and supports which may be adapted
and developed to encourage and promote new and existing businesses in the Aviation Sector
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in Shannon. These options have been discussed and explored through Enterprise Ireland’s
nominee Mr Neil O’Sullivan, Department Manager, Engineering Department with the other
members of the Aviation Business Development Task Force. Enterprise Ireland intends to
work with all relevant parties including the Department of Jobs, Enterprise and Innovation
and IDA Ireland on a collaborative basis to drive the implementation of the agreed actions
following the conclusion of the group’s deliberations and the Governments consideration of
those actions.
Conclusions:
The forty three indigenous client companies listed in Appendix VIII will be
assessed and transferred from Shannon Development to Enterprise Ireland
once legislation is enacted to effect this change.
Enterprise Ireland will work with the NewCo, other state agencies and
relevant stake holders to deliver a menu of agreed initiatives to drive growth
in this sector.
Enterprise Ireland will integrate appropriate staff resources from Shannon
Development, which may be required to support the delivery of these
activities.
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Section 6: Proposals received from Fáilte Ireland for the Shannon Region
with Recommendations
Fáilte Ireland’s regional tourism services consist of two distinct elements. The first is the
maintenance and resourcing of a Tourist Information Office (TIO) network. The second is the
provision of a broad range of development and business support services for tourism SMEs
within each region.
The provision of a broad range of development and business support services for tourism
SMEs is structured on a “Key Account Management” (KAM) basis with a Client Services
Officer (CSO) responsible for maintaining a business development relationship with a
defined group of tourism firms within a given territory. A Client Services Manager (CSM)
provides operational direction to this team. Each regional office is headed up by a senior
officer known as Head of Operations (HO). Each HO is responsible for managing the office,
monitoring strategic issues within the region, and maintaining strong relationships with all
key stakeholders within the region – (e.g.) (sectoral trade associations such as the regional
branch of the Irish Hotels Federation, County Managers, regional development bodies, local
tourism consultative groups, LEADER, NPWS, Waterways Ireland, Coillte etc.).
The TIO network is operated as Fáilte Ireland’s “visitor engagement” service. TIOs are
classified on a model which follows conventional spatial development terminology and are
classified as either “gateways”, “hubs” or “nodes”. Most of the latter operate on a seasonal
basis only. A recent review of nodal TIOs nationally evaluated “footfall” in each office and
considered whether their continued operation was justified within a context of a reducing
resource base. Arising from this review, Fáilte Ireland decided it was not in a position to
maintain all nodal TIOs and consequently, a strategy is now being pursued to maintain these
offices through third party agreements (with local government, local community or business
groups) and without direct Fáilte Ireland support.
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TIO Network in the Mid-West
Fáilte Ireland is of the view that the four permanent TIOs in the region – Adare, Ennis,
Limerick and Shannon Airport Authority - should be integrated into the national TIO
network. As a first step, these facilities will be refurbished, rebranded, and fitted out as Fáilte
Ireland TIOs to reflect the standard “look and feel” of all TIOs across the national network. It
is considered that eight staff members will be required to support these offices and that these
should transfer across to join the Fáilte Ireland staff complement (please see Appendix X).
The rebranding of these TIOs will be prioritised as an early project for Fáilte Ireland, and the
necessary work can be accelerated within the coming months. This development should also
serve as an early and positive signal of continuity in tourism service delivery in the Mid-
West.
In relation to the seasonal (nodal) TIOs – Birr, Kilkee, Kilrush, and Nenagh - it is not
considered feasible to take these into the existing Fáilte Ireland network. In line with policy
nationally, Fáilte Ireland will work with regional third party interests to secure an alternative
model under which the offices could operate in 2013.
Development and Business Support Services
It is considered that a team of eight people will be required to maintain a regional office at a
service level comparable to Fáilte Ireland’s regional offices elsewhere in the country. An
organogram for this Mid-West regional office is attached as Appendix X, and a comparator
table illustrating the proposed structure in the Mid-West in the context of other regional
office structures is set out at Appendix X.
Role profiles and job descriptions have been prepared for each of the eight posts set out in
Appendix X and Fáilte Ireland is now ready to work with the HR team at Shannon
Development in setting up an application/selection process to facilitate the transfer into Fáilte
Ireland of the eight staff members with the requisite skillsets and competencies to match the
requirements of the posts, (bearing in mind transfer of undertaking), set out in Appendix X.
It might be noted that one of these eight posts is the Head of Operations for the Mid-West
region, and that the inclusion of this senior post in the new structure will provide an
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assurance to the trade in the region of a local high-level manager with knowledge of tourism
issues in the region.
Conclusions:
1. The above information presents a summary of the most appropriate regional structure
that could be established in the Mid-West at a level that is comparable to Fáilte
Ireland’s regional structures elsewhere.
2. In seeking to reach a final position on this matter however, it will of course be
necessary to have regard to such issues as funding support for incremental payroll
costs, sanction for additional staff (ie those transferring from Shannon) within the
Fáilte Ireland ECF structure, discussion and clarification of issues as required with
Shannon Development staff, and the practical arrangements required to migrate
existing Shannon development work streams into the new regional structure as
appropriate.
3. Transfer of undertakings legislation.
In dealing with the transfer of specific tourism functions from Shannon Development
to Fáilte Ireland, the provisions of the Transfer of Undertaking regulations which
safeguard the rights of employees in the event of a transfer of an undertaking,
business or part of a business to another employer as a result of a legal transfer or
merger, will be fully complied with.
In essence, only those specific tourism functions and activities that Fáilte Ireland
expects to provide in the Mid-west region will transfer. The staff resources associated
with these specific functions will transfer in accordance with these regulations.
4. Fáilte Ireland has set out above the functions and the associated staff resources and
structures needed to deliver tourism support services in the Mid-West region on a
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basis that is comparable to its service provision in other regions of the country. It is
expected that this will require a budget of €1.2m to cover the payroll costs associated
with a staffing complement of 17 FTE. Further costs of €0.5m will be incurred in
relation to additional overheads and programme activity not currently included in
Failte Ireland’s vote. This will result in an annual funding requirement of €1.7
million. In this respect it is expected that an existing grant-in-aid of €0.750m
(previously paid by the Department of Transport, Tourism, and Sport to Shannon
Development) will in future be paid to Fáilte Ireland, resulting in a net annual funding
requirement of €0.950m.
5. Fáilte Ireland understands that the current staffing level engaged in tourism service
delivery at Shannon Development is 23 FTE. In the event that staff are not placed on
the Public Service Redeployment List, and that Fáilte Ireland is required to absorb
additional staff over and above the 17 FTE indicated, this will give rise to further
annual staff costs amounting to €0.8m. Should these additional staff transfer to Failte
Ireland, consideration will be given to the deployment of these additional resources to
areas of greatest need throughout the existing Failte Ireland regional network.
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Appendix I–Change Management Task Force Terms of Reference
The terms of reference of the Change Management Task Force are as follows:-
1. To evaluate proposals from the IDA, EI and Fáilte Ireland for the transfer of Shannon
Development’s functions in relation to indigenous enterprises, foreign direct investment
and tourism to those agencies;
2. To ensure that a plan for the delivery of those functions in the region is developed by
each agency;
3. To explore options and develop proposals for the formation of the new entity of Shannon
Airport Authority and Shannon Development, taking particular account of the need for
the optimum organisational structure of the new entity that would best support the
development of the Shannon area. These proposals should include the appropriate
corporate, managerial and operational structures of the new entity, including matters
related to IT, HR, Finance and property;
4. To prepare proposals for transitional arrangements for Shannon Airport Authority and
Shannon Development which would be put in place once the Government makes a
decision in the matter and before the formation of the new entity;
5. To consult with relevant stakeholders as required;
6. To set-up working groups, if required, for specific tasks;
7. To bring forward proposals addressing all relevant issues in this regard to the Steering
Group by 16 November 2012.
8. For the Chair to interact closely with the Steering Group and with the Chair of the
Aviation Business Development Task Force, as appropriate, on issues which impact on
the work of both Task Forces [including the preparation of combined proposals for the
new entity].
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Appendix II Members of the Change Management Task Force
John Fitzgerald Chair, Chair of the National Transport Authority, Former Dublin City
Manager
Dermot Curran Asst. Secretary, D/Jobs, Enterprise and Innovation
John Fearon Asst. Secretary, D/Transport, Tourism and Sport
Dan Flinter Former CEO of Enterprise Ireland
Vincent Harrison Director, DAA
Mary Considine Director, Shannon Airport Authority
John King, Assistant CEO, Shannon Development
Breda O’Toole Head of IR, IDA
Joe Buckley Cargo & Technical Dev. Manager, Shannon Airport Authority
Sinead Buckley Senior HR Specialist, Enterprise Ireland
Aidan Pender Director of Strategic Development, Fáilte Ireland
Systems and Operational Procedure Working Group- Vincent Harrison (Chair), John
King, Mary Considine, Joe Buckley.
Human Resources Working Group- Breda O’Toole (Chair), Sinead Buckley, Margaret
O’Rourke (DAA), Alice Morgan (Shannon Development) Pauline Brennan (Shannon
Development)
Communications Working Group- Aidan Pender (Chair), Niall Maloney (DAA), Nandi
O’Sullivan (Shannon Development), Pat Daly (Shannon Development)
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Appendix III - Shannon Airport Authority Team Carve-out Activity
Progress Update
In tandem with the wider DAA group planning and interfaces which the Shannon Airport
Authority Team are contributing to, a number of discrete deliverables have also been
progressed:
Detailed SAA Project Plan
Preparation of detailed project plan from inception, setting out the principle elements
required to secure operational readiness for SAA. This plan has been aligned with the overall
DAA master plan. In addition, regular alignment meetings take place between DAA Project
Management Office (PMO) and SAA to ensure appropriate management and control of key
milestone delivery is achieved. As a result of the Project Planning process a number of
activities were agreed, which included isolation of SAA and DAA organisation structure to
identity those areas which required detailed service cataloguing. Supporting the project plan
is a weekly local PMO meeting at which timing, resource, tasks, and issues are reviewed.
Additionally a local Shannon Separation project team has been established.
SAA Business Plan
Local Plan developed together with all financial inputs including capital plan, costs scenario,
cash flows and headcount analysis. This plan is currently being reviewed by KPMG.
Service Catalogues/ Position Papers
Extensive service cataloguing has taken place throughout August 2012, culminating in
detailed catalogues being agreed with respective functional owners in the DAA.
Categorisation of the resource required to perform these services (local SAA existing
resource, (ii) 3rd
party supplier (1, 2, or 3-airport), and (iii) DAA resource). Requirements for
additional SAA resources also identified through this process e.g. Procurement.
Third party contracts
Extensive work done locally to identify third party suppliers used by SAA which have been
segregated into those 1-2-3 airport contracts and prioritised for contacting by the DAA
Procurement workstream.
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IT Requirements
Oracle On Demand (Release 12)
A detailed business Requirements Paper prepared locally and approved by Mary Considine,
ultimately formed the basis for the final approval by DAA. This paper is to be supported by
an updated detailed Oracle On Demand Project plan.
A committee has been formed to meet weekly on management of Oracle on Demand and IT.
IT Infrastructure
Several meetings held locally to progress traction on developing a project plan with the DAA
to cover key IT infrastructure requirements for SAA. Additionally, there have been detailed
position papers compiled for key SAA business requirements.
Operational Front-end
Key operational front end systems reviewed e.g. AOMS, CMS, and assessment in place to
ensure clean cut-over logistics are in place for separation date.
Other Activities
Banking – requirements have been assessed and cutover plan put in place.
Branding – identification of key branding issues in progress (Hotel, Shannon Fuels,
The Loop).
Retail –logistics for the transition of the 28 discrete concessionaires in-house
including review of licences nearing completion to ensure readiness by separation
date (utilities, IT, network, accounting etc).
Cutover – Detailed assessment of financial cutover implications compiled and being
reviewed including cut-off issues, funding of necessary provisions which will carry
over to opening balance sheet, billing intervals and new in-house functions.
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Appendix IV – Shannon Development IT systems
Business Applications – All managed In-House
General ledgers Sun Financials
Lease Management In House
Client Information System In House
Grants Management In House
Debt Management In House
GIS - Mapping MapView
Reservations & day Visits Gamma
Retail EPOS Eagle
Document Management & Workflow OnBase
Content Management TerminalFour
Payroll Perfast
Time & Attendance VisionTime
Expenses Transfare
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Appendix V – Shannon Development Terms and Conditions
Shannon Development - Terms and Conditions
ITEMS COMMENT
1. Contract status (Permanent/Fixed Term with expiry date -Nos
109 Staff Members in Shannon Development – 106 Posts (includes 3 job sharing) 5 Permanent Part-Time Tourist Information Advisors 8 Seasonal Fixed Term Contracts ceasing at the end of September and 1 ceasing at the end of October 2012 1 agency 2 staff members on Incentivised Career Break due to cease November 2012 2.5 staff members on Long Term Income Continuance
2. No of staff with dual roles against pillar and no of staff against activities
Appendix 1
3. Salary scales/Grades of all staff against the Nos and if increments paid and how much and when are they paid – anniversary or annually and on what basis?
Shannon Development operates the Department of Finance authorised scales attached in Appendix 2. Increments are processed annually. Clerical grades are processed in April and Executive Grades are processed in August.
4. Pension type – superannuation?/Approved scheme?
5. No of pensioners 6. Pension Fund – cost, who
funds?
The SFADCo Superannuation Scheme & Spouses and Children Scheme are approved by Revenue Authorities and is governed by Scheme Rules. It is a defined benefit scheme. No of Pensions: 154 Pensioners, 50 deferred pensioners Pension Fund administration: Contributions
Staff members pay 3.5% of pensionable Salary and 1.5% of Salary
Members of Spouses &Children pay 1.5% of pensionable Salary
Shannon Development pay 9.4% or Pensionable Salary
This money is returned to the exchequer along with Pension Levy as Appropriations in Aid each month
Payments
Shannon Development pay Pensioners on a monthly basis through payroll.
The cost of pension at retirement is recouped from the exchequer through E3 allocation on a monthly basis. Approx €2.6m pa
Gratuities are also reclaimed through E3 as they arise
Shannon Development pays the Post Retirement Pension Increases from own funds approx €903,833 pa
Shannon Development pays supplementary pension to 21 pensioners from own resources approx €218,016 pa
SFADCo AVC Scheme
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No of AVC members:45 members (41 active, 4 non-active) Operates as a defined contribution scheme. Administered by Trustees. SFADCo Supplementary Life Assurance Scheme No of Supplementary Life members: 54 Supplementary Life is available to staff and retirees up to age 65 in line with Irish Life Terms and Conditions. Policy currently operated by Irish Life and through payroll deductions staff members pay a current rate of 0.0675% of Salary/pension for a cover of 2.5 Salary / pension in the event of a members death.
7. Sick Scheme Staff on sick leave for more than 3 consecutive days receive full pay less social welfare for a maximum of six months were the Company is satisfied that the staff member is genuinely ill.
Max of 5 uncertified sick leave days in each calendar year
A Group Income Continuance Policy is operated by Shannon Development for all permanent staff members.
Benefit: 60% Salary minus Social Welfare and staff member claims Social Welfare.
The IC Policy is fully funded by the Company. There is no cost to employees.
Pension Contributions are covered for the duration of the illness benefit
8. Holiday entitlements against grades
Annual Leave year is 1st Jan – 31st December Appendix 2
9. Allowances payable against grades – overtime payments allowed and on what basis/Any other allowances
Travel Allowance – paid to 83 staff who are currently based in Shannon and living outside of Shannon. This allowance dates back to establishment of Company. Tourist Information Office Allowances:
Sunday Allowance
Unsocial Allowance Executive Committee Allowance – paid to 1 staff members Senior Management Allowance – paid to 3 staff members Individual allowance tied to individuals historic contract VHI Allowance – paid to 4 pensioners as a result of contractual requirements. Since Jan 2012 payment of allowances to new recipients have been suspended as per instruction from DPER.
10. Long Service Awards/Recognition /Merit Awards payable
LONG SERVICE AWARDS (POLICY) The company operates a Long Service Awards Policy in recognition of the loyalty and contribution made by its employees. The company present the awards as follows: 20 years – award to the value of €200 30 years – award to the value of €300
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40 years – award to the value of €400
11. Budget Payroll costs Non-Payroll costs Training and Development Budget separated out from non-payroll costs
Approximately - €8.7 million payroll costs €222,000 – non payroll costs €1.1 million in relation to payment of Post Retirement Pension Increases and Supplementary Pension Costs Training Budget: €13,000 in 2012, primarily spent on mandatory training requirements.
12. Policies Learning & Development Discipline Grievance Annual Performance and Development Review Procedure Employee Assistance Programmes in place Career Break Policy Time off for Marriage/any other related ones
Family Friendly Work Arrangement Policies including reduced hours and flexi-time policies
Compassionate Leave o 3 days for parent, spouse/partner, brother /
sister, Child o 1 day for mother / father in law, grandparent,
grandchild, aunt, uncle, niece, nephew, sister in law, brother in law.
Learning & Development (including Private Study)
Discipline
Grievance
Annual Performance and Development Review
Employee Assistance Programmes
Career Break Policy
Mobile Phone Policy
1. Qualifications of staff – how many have what degrees/diplomas
Over 80% of staff hold a third level qualification (Certificate / Diploma, Degree, Post Graduate, Masters, Doctorate) across the areas of Business, Engineering, Science, Arts, Humanities and Social Science. A full and up to date list of specific qualifications will be completed in October 2012.
2. Any other T& C that relate directly to staff
Flexi-Time Health Screening Executive Health Screening Retirement Gift SFADCo Credit Union Shannon Heritage Tickets and Pass Free Car Parking Required Professional Subscriptions applicable to job role
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Appendix VI - Shannon Airport Authority - Terms and Conditions
ITEMS COMMENT
1. Contract status
(Permanent/Fixed Term with expiry date –Nos of those particular in non mandatory services to airport delivery
Reporting as at 13 September 2012 ( Excluding Shannon
College of Hotel Management)
Staff levels in a stand-alone Shannon Airport Authority are 231 Full Time Equivalents (FTE’s) excluding Shannon College of Hotel Management 24.6 FTE’s. This includes seasonal contract workers in Security and Retail who are employed for peak season only. Excluding seasonal workers (8 FTE’s) and Shannon College the core FTE number is 223. Under separate file is the Shannon Airport Authority Structure with details the functions and staff members employed
2. No of staff with dual roles
against Business Unit Structures
3. % time provision of group
service e.g % time of group to Business Support
Reporting as at 13 September 2012 Shannon Airport Authority has moved to a structure that will ensure operational readiness on Vesting day and therefore are reporting Nil with Dual Role employment.
4. Salary scales/Grades of
all staff against the Nos and if increments paid and how much and when are they paid – anniversary or annually and on what basis?
Salary scales applicable to DAA Shannon Airport Authority employees and on a 3-Airport basis. The Salary scales do not reflect the 2010 Pay adjustment 0% to 12% Annual Increments are payable on 01 April to the employee population who are currently below the top of the scale applying to their grade.
There are 68 employees entitled to one or more future increments in 2013 and onwards.
The value of 2012 Increments paid to 83 staff was €113,307
5. Pension type – superannuation?/Approved scheme?
Membership of the Irish Airlines (General Employees) Superannuation Scheme. This Scheme is administered by Aer Lingus. This Scheme is a defined benefit scheme for the purposes of the Pensions Act. Standard pension 6.375% of basic pay less an amount for co-ordination with State pensions. Standard
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6. No of pensioners
7. Pension Fund – cost, who funds?
Employer contribution. Staff joining greater than age 46 a higher rate will apply depending on the person’s age. Normal retirement date is the anniversary of joining the scheme post 65th birthday.
Composite pay employees in Retail and Airport Police Fire Service which total 46 are members of the Irish Airlines and Mercer HR Consulting Scheme.
Effective February 2010 new employees do not participate in the Irish Airlines or Mercer Schemes. Nominated PRSAA service provider is Bank of Ireland and should the employee decide to avail of a PRSAA, the Company will make contributions to the PRSAA equal to the contributions of the employee up to a maximum of 6.375% of the Salary. Pension membership: 219 employees (EX Hotel College)
173 are 100% Irish Airlines 46 are Irish Airlines & Mercer 1 PRSAA employee Employees have the option to make additional voluntary contributions (AVC’s) and Supplementary Scheme (SPPP) to the Scheme.
8. Sick Scheme
Uncertified Sick Leave: 2 uncertified sick leave days in each year (01 April to 31 March) In general there are 2 schemes of Sick Leave allowances. Scheme 1: On completion of 12 months service and up to 3 years service, payment at the full basic rate may be allowed up to a maximum of 3 months. On completion of 3 years service payment at the full normal rate may be allowed up to a maximum of 6 months in any period of 12 consecutive months. After the allowance of 6 months sick leave at full pay a further period not exceeding 6 months at ¾ pay may be allowed provided that the total allowance does not exceed 365 days in any period of 4 consecutive years.
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Scheme 2: Applicable to staff on initial probation and to staff who have had their sick Scheme 1 privileges restricted. For each month of continuous service 1 day’s paid Sick Leave will be credited to a total credit of 30 days.
9. Holiday entitlements against grades
The Company observes the 9 public holidays. In addition it also regards Christmas Eve and Good Friday as company holidays. The Annual Leave year is 01 April of one year to 31 March of the following year All grades excluding Executive/Professional: Start: 20 days After 5 years: 22 days After 10 years: 24 days After 15 years: 25 days After 20 years: 26 days Executive/Professional grades: Start: 23 days After 5 years: 25 days After 10 years: 27 days After 15 years: 28 days After 20 years: 29 days Senior Manager: After 20 years:30 days
10. Allowances payable
against grades – overtime payments allowed and on what basis/Any other allowances
All overtime is paid at single or time and a half as appropriate and when approved and authorised in advance. Allowances: Grade,Individual & Legacy
Operative Grade: Snow & Ice Allowance (Grade & €1,407 once off to 8 employees)
On Call Payments (Individual & once off)
Deputising Allowance (Airport Police & Screening Supervisors category – payable to stand-up category of employee only)
Airport Police Fire Service Officers- €927.41pa Boat Allowance payable to Grade - 78 employees
Airport Police Manager RDA Average – €1,051pa payable to 5 individual employees
Roster Duty Allowance: Early/Late/Night
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/Saturday & Sunday payable to shift category employees – Business unit basis
Trades Shift Non-Pensionable 33.33 %- payable to 6 Grade employees
Car Parks Shift Pensionable/Non-Pensionable 20% - payable to 7 employees
Fixed Bonus payment to 7 Individuals - 10% payment
Senior Manager - Car Allowance; payable to 2 Senior Managers
Travel Subsidy Shannon -payable to 15 employees variable amount €400 – €800pa (Legacy payment)
Special Duty Pensionable – payable to 2 employees approx €2,500 pa
(Legacy payment)
Airport Search Unit Shift Non-Pensionable 25% payable to 1 employee (legacy payment)
Red-Circled Payment – payable to 1 individual €6k (legacy payment )
11. Long Service
Awards/Recognition /Merit Awards payable?
DAA acknowledge 25, 30, 35 & 40 years service with a luncheon and present a memento to the employee.
12. Budget Payroll costs Non-Payroll costs
€16,447k €12,389 – Breakdown of costs associated with the
€12.389m
Repairs and Maintenance Costs
Rent and Rates
Energy Costs
Technology Operating Costs
Insurance
Cleaning Contracts & Materials
CUTE Operating Lease Costs
Fees and Professional Services
Marketing & Promotional Costs
Aviation Customer Support
Telephone Print and Stationery
Employee Related Overheads
Other Overheads
Travel & Subsistence
CAR Costs
Allocations of Materials & Services
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Training and Development Budget separated out from non-payroll costs Group Costs
€79k Training Operational Competency Development of which 53k is Airport Police Fire Training compliance and mandatory training. €1,699k Breakdown of costs associated with the €1,699k
Airport allocation in respect of Legal, Purchasing, Asset Care & AMD, Internal Audit, IT & Computers & Shared Service Centre.
13. Policies Learning & Development Discipline Grievance Annual Performance and Development Review Procedure Employee Assistance Programmes in place Career Break Policy Time off for Marriage/any other related ones
Policies applicable to DAA Shannon Airport Authority employees & on a 3-Airport basis Performance Review for Management grade Not rolled out to grade below Manager Employee Assistance is no longer an in-house facility. The DAA have contracted Staffcare to provide a free, independent and confidential service for employees of DAA at Shannon Airport Authority in addition to providing Critical Incident Stress Management (CISM) service. Career Break Policy – N/A (Individual basis) Compassionate Leave: 5 days leave in the event of the death of a spouse, son or daughter 3 days leave in the event of the death of a near relative, i.e. father, mother, brother, sister Special circumstances extra compassionate leave may be granted
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Appendix VII – Enterprise Ireland Core Services for Mid West Client Companies
1. Enterprise Ireland’s Clients and Core Services
Profile of Client Companies in the Mid West
There are 511 Enterprise Ireland clients based in the Mid West region. These range from
early stage start-ups to large companies. They employ over 12,800 full time and 1,700 part
time staff in the Region. Table 1 provides a breakdown of Enterprise Ireland trading and pre-
trading company clients in the Mid West Region and nationally.3
Table 1: Enterprise Ireland Client Companies 2011
Established
HPSU &
Scaling
Large
Company
Pre -
HPSU Total
Mid West
Total
342 42 12 115 511
Clare 66 7 0 17 90
Limerick 161 23 6 65 255
Tipperary North 38 4 2 11 55
Kerry 77 8 4 22 111
National Total 3810 469 175 1330 5784
% Breakdown 9.0% 9.0% 6.9% 8.6% 8.8%
Enterprise Ireland client companies in our Mid West region account for approximately
9% of all Enterprise Ireland clients. In comparison, the population of the Mid West &
Kerry is 11.8% of the national population.
There is a high level of pre-HPSU businesses in the region accounting for over 20% of
Enterprise Ireland Client Companies in the Mid-West –which indicates significant early
stage start-up activity.
3 Source; CSS July 2012
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Table 2: Total Employment in Enterprise Ireland Client Company by County
2002 2007 2009 2010 2011
Change
02-07
Change
07-11
Clare 1,814 1,894 1,536 1,552 1,493 4.4% -21.2%
Limerick 6,670 7,946 6,404 6,150 6,033 19.1% -24%
Tipperary
North 2,907 3,063 2,140 2,195 2,243 0.5% -26.7%
Kerry 3,863 3,531 3,145 3,078 3,123 -8.6% -11.5%
Full
Time
Mid
West
15,254 16,434 13,225 12,972 12,892 7.7% -21.5
Full Time
National
Total
158,077 171,532 145,767 141,222 141,228 8.5% -17.7%
Source Forfás Annual Employment Survey 2011
Enterprise Ireland clients based in the region account for 9.1% of all Enterprise Ireland
company employment. Employment in the Mid West peaked in 2007 at 16,434 full time
employees, while employment in the region grew steadily between 2002 and 2007, the
regional performance was behind the national average (7.7% growth compared with 8.5%
growth nationally).
By 2011 total full time employment had fallen to 12,892 - a decline of 21.5% over 2007
levels. This compares to a decline of 17.7% in Enterprise Ireland clients nationally. In
contrast the number of part-time or contract staff employed in these companies increased
by 51.8% since 2007. This indicates a change in trend between fulltime contracts and
other forms of employment in the past few years.
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Table 3: Total Employment in the Mid-West by Main Sector
2002 2007 2009 2010 2011
Change
02-07
Change
07-11
Food, Drink &
Tobacco
4,620
4,536
3,812
3,854
3,832 -1.8% -15.5%
Internationally
Traded
Services
4,872
5,333
4,573
4,443
4,435 9.5% -16.8%
Modern
Manufacturing
950
1,083
816
860
889 14.0% -17.9%
Traditional
Manufacturing
4,812
5,482
4,024
3,818
3,736 13.9% -31.8%
Full Time
Mid West 15,254 16,434 13,225 12,972 12,892 7.7% -21.5
Full Time
National Total 158,077 171,532 145,767 141,222 141,228 8.5% -17.7%
Employment in the traditional manufacturing sector has seen the largest decline in
numbers with a drop of 32% since 2007, albeit showing a slower decline last year down
by 2%. All other sectors declined by approximately 17% in the SAAme period. When we
analyse the employment data between 2010 and 2011 the food, drink & tobacco sector
reduced by only 1%, while the decline in numbers employed in internationally traded
services has stabilised, and modern manufacturing increased by 3% since 2010 thus
growing in relative importance.
Employment in the traditional manufacturing sector fell by 4.5% relative to the other
sectors between 2007 and 2011.
2. Enterprise Ireland’s Work with Companies in the Mid West
Enterprise Ireland will continue to work closely with companies in the region as evidenced by
the level of financial approvals and other supports over recent years. (Table 4)
Enterprise Ireland has approved over €47 million in direct support to Mid West companies at
all stages of development since 2008 (including start-ups).
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Some of the broader regional issues raised in the Forfas Regional Competitiveness Agenda
(Jan 2010) are outlined in Appendix 3, along with updated comments on proposed actions to
be addressed.
Table 4: Company Approvals in the Mid West 2008 - July 2012
Support Type Approval Amount
Growth* €17.186m
Capability Building €12.414m
Exploring New Opportunities €7.003m
Start-Up Related €10.859m
Total €47.462m
*Including the Enterprise Stabilisation Fund
Established Companies
Growth: Enterprise Ireland supports companies’ growth strategies through expansion
projects. Since 2008 Enterprise Ireland has approved €17 million to 149 projects.
Capability Building: Enterprise Ireland helps companies to build capability in critical
business areas. Since 2008 185 projects have been approved €14 million
Exploring New Opportunities: Enterprise Ireland assists companies targeting new
business opportunities in export markets (feasibility, trade fair participation, in market
buyer meetings). Since 2008, €7 million has been approved for 433 projects in this area.
Additional Government Schemes managed by Enterprise Ireland
€3.74 million was also approved under the Dairy and Beef Competitiveness Funds
administered by Enterprise Ireland on behalf of the Department of Agriculture, Marine
and Food.
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€12.95 million was approved under the Employment Subsidy Scheme (ESS)
(administered on behalf of the then Department of Enterprise, Trade and Employment).
In addition in 2007 Enterprise Ireland approved €22.39 million funding in the region to
dairy companies under the Dairy Process Investment Initiative.
Start-ups & Entrepreneurship Development
As Table 4 demonstrates €10.85 million has been approved to support start-ups, with 31
new Innovative HPSU’s supported in the region since 2008.
Enterprise Ireland has approved €6.31 million towards 17 Community Enterprise Centres
(CEC’s) five of which are currently under construction across the region.
Enterprise Ireland continues to provide a range of tailored events, workshops and
programmes providing potential entrepreneurs with the business skills, contacts,
mentoring and supports to establish start-ups such as Enterprise Start, Ideagen, and the
New Frontiers Programmes being delivered in Limerick Institute of Technology and IT
Tralee. Enterprise Ireland also collaborates with University of Limerick in their Venture
Start Programme, based in the Enterprise Ireland supported Nexus Incubation Centre, and
with Ennis Innovate based in the Information Age Park in Ennis.
Enterprise Ireland has supported the development of Incubation Centres in all of the 3rd
level institutions in the region. We provided in the region of €2.5m funding towards each
of these centres – the Enterprise Acceleration Centre in Limerick Institute of Technology
in 2003 (Renamed the Hartnett Enterprise Acceleration Centre in 2011); Tom Crean
Centre in IT Tralee in 2003 and the Nexus Centre in UL which opened in 2011. We
funded a Community Enterprise Centre in Thurles with Thurles Chamber of Commerce,
LIT and North Tipperary CEB as partners which they built on a site adjacent to LIT
Tipperary, Thurles campus. The centre has just opened and already is home to 3 start-up
businesses. There are currently approximately 50 start-up businesses located in these 4
Incubation Centres.
The level of High Potential Start-ups emerging from the region is approximately 7 per
year for the past 5 years.
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Additional Supports to Clients
In tandem with financial supports outlined above, Enterprise Ireland will continue to provide
a range of non-financial combination of services, contacts, workshops and events to
companies in the Mid West.
Metric Outturn 2008 - June 2012
Buyers to Ireland (Meetings with potential
customers)
294 buyers to 71 companies in the region.
Participants on short Client Management
Development Programmes
102 participants (since January 2011)
Companies participating on Short Client
Management Development programmes
48 companies (since January 2011)
Participants on International Selling
Programme
45 Participants (41 companies)
Participants on Leadership 4 Growth 10 participants (10 companies)
Participants on the Internet Growth
Acceleration Programme
16 participants (8 companies)
Participants on the Venture Start Group
Programme
10 participants (10 companies)
Participants on other EI Management
Development Programmes (100hrs+)
7 participants (5 companies)
Mentors based in the mid-west 19
Mentor assignments completed 91
Mentor assignments underway 54
Innovative HPSUs approved 31
Approvals to CECs in the Mid-West €6.314 million – 17 centres4
4 Killarney Technology Innovation Ltd, Iveragh Co-Op Farmers Mart Society Ltd, Kenmare Co-op Mart Society , Comhlacht Forbartha
Phobal Abhainn An Scail Teo, Sliabh Luachra Development Group, Roughty Valley Co-op Society, Listry Community Council, Project
Ennistymon Ltd, Kilmallock Economic Enterprise Development Ltd, Croom Community Development Association Ltd, Ballylanders
Development Association Ltd, Broadford Community Enterprise Centre Ltd, Kantoher Development Group, Southill Development Co-
operative Society, North Tipperary Green Enterprise Park Ltd, Thurles Community Enterprise Centre Ltd, North Tipperary Food Enterprise
Centre (Rear Cross).
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Mid-West Institutes of Technology and the
Enterprise Agenda
Commercialisation Fund Approvals 18 Approvals - €3.8 million
Companies Supported through the Innovation
Partnership Programme
27 Mid-West Companies participating in
34 Innovation Partnerships.
259 companies – 750 separate participants – from the region have participated on
Enterprise Ireland organised Trade and Knowledge events from 2008 to date.
75 companies have taken part in trade fairs and outward missions since 2008 (including
trade missions to the USAA, India, the Kingdom of Saudi Arabia, China, Canada, Brazil,
Mexico, Japan, South Africa and Australia).
Meetings have been arranged for 71 companies from the region with 294 potential
customers since 2008.
45 participants from 41 companies have been represented on Enterprise Ireland's
International Selling programme to enhance Sales capability and performance.
10 CEO’s from the region have participated on our flagship Leadership4Growth
programme (e.g. Stanford University).
Enterprise Ireland’s 19 mentors based in the region continue to undertake detailed
assignments with companies in the region. Since 2008 our mentors have completed 91
assignments with Enterprise Ireland and County Enterprise Board clients. 54 other
assignments are currently in progress.
3. The Mid West 3rd level facilities and the Enterprise Agenda
The University of Limerick (UL) is the only university in the region; in addition there are two
IoT’s – Limerick Institute of Technology (LIT) and the Institute of Technology Tralee (IT
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Tralee). LIT subsumed the Tipperary Institutes in 2011 and now has re-branded these entities
as LIT Tipperary with campus locations in Thurles and Clonmel. The Mary Immaculate
Teacher Training College based in Limerick is affiliated to UL, these entities make up the 3rd
level sector in the region.
Enterprise Ireland works closely with all of these entities both to develop their capability and
capacity to connect with enterprise in the region and beyond, building on the work of Science
Foundation Ireland.
University of Limerick
In relation to research, the University has established a number of internationally respected
research institutes, such as:
The Materials and Surface Science Institute
The Stokes Institute for Bio fluidics and Micromechanical Engineering
The LERO Institute for Software Engineering
Charles Parsons Energy Research Institute
The University also has a range of research centres covering areas such as Automation
Research, Applied Biomedical Engineering, Telecommunications, Wireless Access, Food
Health, Energy Efficiency etc. Many of these centres have received Science Foundation
Ireland and/or Enterprise Ireland funding for their research activities.
Materials Competence Centre
The University of Limerick was selected by Enterprise Ireland and the IDA Ireland to lead
and support National Centres of excellence. The Irish Centre for Composites Research
received initial funding of €5m and will co-host Competence Centres for Bio Energy and Bio
Refining, Micro Electronics and IT Innovation.
Technology Transfer Office (TTO)
Enterprise Ireland has supported the establishment of a Tech Transfer Office with 4 staff in
UL to drive the commercialisation of research undertaken in the university and encourage
start-up opportunities. Enterprise Ireland has provided approx €1.4m in funding to the
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Technology Transfer Office since 2008. The TTO concluded consortium and IP arrangements
involving 10 companies and 2 public research organisations.
Table 5: UL Commercialisation Performance & (original Targets)5
Year 2007 2008 2009 2010 2011
Disclosures 28 (15) 21 (21) 27 (17) 21 (20) 23 (23)
Patents filed 15 (8) 14 (8) 9 (9) 8 (10) 8 (11)
Technologies Transferred To
Industry
(Licence/Options/Assignments)
2 (4) 7 (4) 6 (5) 10 (6) 8 (7)
Spin-outs 1 (1) 0 (1) 2 (2) 2 (2) 2 (2)
Total UL Research
Expenditure - all state sources
€29.5m €31m
€31m
€25.m
€25m
Enterprise Ireland funding €4.9m €4.3m €3.9m €2.5m
5 Source: R&I July 2012
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In 2010 approximately 10% of the University of Limerick’s annual research income was
derived from industry sources.
Examples of Spin-outs from the University of Limerick include:
ALR Innovations Ltd (the most recent example) – this company started as
a commercialisation project in UL led by Dr Lisa O’Donoghue in 2009, to
automate the recycling of fluorescent tubes and LCD’s used in TV’s. A
patented novel technology was developed and Lisa negotiated a licence
agreement with the TTO in UL, she then participated on the LEAP,
(Enterprise Ireland funded Enterprise Platform Programme) in LIT in
2011, to develop an investment ready business. During her time on the
programme Lisa won the InterTrade Ireland Seed Corn Competition
(€100k), she also won a €50k term sheet from Enterprise Equity for being
the best business on the LEAP end of year awards in July 2012. She is
currently in the middle of first round funding negotiations with Enterprise
Equity and Enterprise Ireland
Powervation has, to date, completed venture capital funding rounds
totalling €30M. The company employs 27 people.
Crescent Diagnostics has completed funding rounds totalling €5M. These
investments have enabled the company to complete the clinical trial phase
of its R&D programme. The company employs 7 people.
LearnOpt’s “BrueBrick.ie” portal was adopted by the Higher Education
Authority in 2010. The portal will provide a single web portal for
Springboard, a new €20m multi-annual fund providing higher education
opportunities for unemployed people. The company employs 5 people.
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Nexus Incubation Centre
Enterprise Ireland approved €2.6m funding towards the new Nexus Innovation Centre at the
Tierney Building in UL which was officially opened by Minister Michael Noonan in
November 2011. The centre has accommodation for 18 businesses and already has 10
companies based in the new facilities. UL through the TTO office runs a Venture Start
programme for 10 start up businesses each year in the Nexus centre.
The Limerick Institute of Technology (LIT)
The Limerick Institute of Technology was established as a Regional Technical College in
1993 and designated as an Institute of Technology in 1998. The Institute has approximately
6,000 students across all its campuses, the majority of which are pursuing courses in the area
of Science, Engineering and IT. Limerick Institute and the Tipperary Institute of Technology
formally merged in September 2011 leading to two further campuses at Thurles and Clonmel
being branded as LIT Tipperary.
Hartnett Enterprise Acceleration Centre
Enterprise Ireland approved capital funding of €2.54 million for development of the
enterprise acceleration centre in 2003/4, in addition to €157k towards a business development
manager. The centre was renamed the Hartnett EAC in 2011.
The centre has delivered the LEAP Enterprise Platform Programme for the past 5 years and
helped develop 60 start-up companies with 200 employees with the support of Enterprise
Ireland and the Limerick City & County Enterprise Boards.
The centre houses approximately 18 start-up businesses employing approximately 50 staff. It
is also delivers the New Frontiers Programme which has just commenced Phase 2 with 9 new
start-up businesses. (The New Frontiers Programme is a national programme to fast track the
development of regionally significant Start-up businesses which is supported by Enterprise
Ireland. It is being delivered in 10 Institutes of Technology nationally. The programme
consists of a 6 week Phase1 - one day/week part-time, followed by Phase 2 - a 6 month full
time structured business development programme for participants, with €15k financial
support, mentor support and hot desk facilities in the IOT’s incubation centres.
The centre is one of the primary hubs for HPSU development in the region.
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Institute of Technology Tralee
The Institute of Technology Tralee (ITT) is of significant importance to the Region. There
are approximately 3,500 fulltime and part-time students, with a graduate output of circa
1,150/year. Programmes from under-graduate up to post graduate masters and doctoral level
are available on campus. There are 3 schools – Business & Humanities which includes Hotel
& Tourism; Engineering & Construction Studies; and Science & Computing which includes
Nursing and Health & Leisure.
Tom Crean Incubation Centre
Enterprise Ireland provided €2.2 million for the establishment of a campus incubation centre
in IT Tralee in 2003/4 and €157k towards the initial management costs. The Tom Crean
Centre was opened in 2006 and is currently home to 12 companies employing 30 people
approximately, IT Tralee is also one of the delivery centres for entrepreneurship training
activities including the New Frontiers Programme, which recently commenced Phase 2 with
9 companies participating in this 6 month intensive business development programme.
IT Tralee is also actively involved in the delivery of Entrepreneurship Programmes for
second and primary school level students under their Young Entrepreneur (YEP) and Junior
Entrepreneur programmes (JEP) in conjunction with local serial entrepreneur Jerry Kennelly;
Shannon Development; Kerry CEB and Local Leader Companies NEKD & SKDP. These
programmes have approximately 800 participants each year
Shannon Applied Biotechnology Centre (ABC)
Enterprise Ireland has funded a collaborative Applied Research Enhancement (ARE) centre
in IT Tralee in collaboration with LIT - Shannon Applied Biotechnology Centre. The Centre
develops innovative products and ingredients from natural resources using novel processes to
obtain value added food products, food flavours and medicinal products. These products will
be used to create, enhance or add value to existing products in the food, healthcare and
developing nutraceutical industries.
Since Enterprise Ireland’s initial ARE seed funding Shannon ABC has built upon its critical
mass of research competency and commercialisation activities supported. This has helped to
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expand IoT’s technology offer to industry. This was achieved by the receipt of an extra
€1.024m from the HEA in a Research Facilities Enhancement Grant and capital equipment
grants from Enterprise Ireland in 2007 and 2008, to the value of €1.682m. In total, 500 m2 of
space has been allocated between both Institutes to Shannon ABC laboratories. In May 2010,
Shannon ABC secured a prestigious European project submitted in response to Framework
Programme 7 KBBE 2010 with a total value of €4.2m.
Staff numbers have increased from 11 (including 3 post grads) to 43 (including 16 post grads)
in 4 years. The additional staff are funded by a variety of funding sources including
Enterprise Ireland Innovation Partnerships, HEA, IRCSET etc. The growth in scale of
Shannon ABC has enabled the centre to enhance its capabilities in bio-processing, separation
and bioactive screening. This development has significantly increased its capacity to improve
its R&D offer to collaborative companies, in particular regional HPSU & SME clients. The
research team have active collaborations with over 20 client companies in the region and
nationwide. There has been one pre-HPSU spin out from the Tralee research group to date.
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Commercialisation Fund Approvals
Enterprise Ireland has provided funding to 18 commercialisation projects in the region since
2008 – 17 in UL and 1 in LIT to a value of €7.14m.
Innovation Partnerships
This Programme supports research collaboration with industry on problems of specific
interest to a company or group of companies. UL was successful in obtaining Enterprise
Ireland’s largest Innovation Partnership award (€1m) in 2008. This project involved funding
collaboration between Cook Medical and researchers from the Materials and Surface Science
Institute (MSSI). In many cases UL has had repeat business with partner companies (e.g.
Aughinish, Aerogen, Cook Medical, Ceramicx).
Since 2008 we have funded 27 innovation partnerships across all of the institutes and UL to
the value of €4.62 million.
Table 6: Innovation Partnerships approved by College 2008 – 2012 (YTD)
College Total no. approved Total Value of
Approvals
UL 21 €3.528m
LIT 2 €352k
IT Tralee 4 €780k
Mid West 27 €4.62m
Source: Research & Innovation Institute Grant Database July 2012
Innovation Vouchers: These are €5k vouchers which can be secured in a competitive
process by any limited company in any sector and can be cashed in any 3rd level institution.
It is designed to encourage companies to undertake research and development on new or
existing products utilising the expertise available in any college of their choice in Ireland.
Companies based in the region have been approved 314 Vouchers to a cumulative value of
€1.57 million, breakdown of these vouchers by county are outlined in table 7 below.
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Table 7: Innovation Vouchers approved by County 2008 – 2012 (YTD)
Total no. approved Total Amt Approved
Clare 78 €390k
Limerick 106 €530k
North Tipperary 27 €135k
Kerry 103 €515k
Mid West 314 €1.57m
Source: Research & Innovation Institute Grant Database July 2012
European Union Framework Programme 7 Funding (FP 7)
Enterprise Ireland has a dedicated team which assists companies and colleges in Ireland to
establish international networks and apply for R&D funding through this EU scheme. The
amount of FP7 Funding secured in the Mid West Region by Irish Industry and 3rd level
colleges in the region from January 2007 to July 2012 to-date is detailed below and in total
comes to €21.1 million.
Region
Total Funding to Successful
Irish Industry Participants €
Mid - West € 6.5m
Total € 114.7m
Higher Education Institution
FP7 Funding
Secured
University of Limerick € 13.439m
Limerick Institute of Technology € 934k
Institute of Technology Tralee € 232k
Total € 14.605m
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IT Tralee were successful in two separate FP7 applications submitted in December 2011 with
two local industry partners, this was a first time application for all parties concerned. Their
projects were both placed in the top 25 applications assessed out of 809 applications received
from all over Europe.
Shannon Development indigenous company activity in Shannon Free Zone
There are approx. 96 companies in total located on the Shannon Free Zone, 45 of these
companies are indigenous Irish businesses. These Irish companies currently employ 1,056
people (as per Shannon Development’s survey of Oct/Nov 2011) and have an estimated
combined turnover of €189m. This turnover figure includes €69m from Aer Rianta
International, plus a further €2.9m associated with three wholesale distribution businesses.
These businesses are primarily small entities, with only 20 of these clients having 9 or more
employees, these companies account for approximately 900 employees in total, and have a
combined turnover of approximately €175 million (90% of employment and turnover of the
indigenous group). These would form the core group of the potential transferees to Enterprise
Ireland post the transfer of companies on the zone to the State Agencies. See Appendix 2
There are approximately 52 FDI Companies on the Zone employing 5,300 people.
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Appendix VIII
Regional Perspective: Forfás Regional Competitiveness Agenda – Mid West
The following are some key points raised in the Forfás Regional Competitiveness Agenda for
the Mid West Region published in 2010
The Mid West Region is well served in terms of access and knowledge infrastructures
particularly with its international airport at Shannon, deep sea port at Foynes and Plassey
Technology Park. International access is a basic necessity for firms operating on global
markets; the Mid West is well served with an international airport at Shannon and inter-
urban road and rail infrastructure. Issues still need to be addressed to develop the Atlantic
Corridor concept in particular the completion of the N18 to Galway and the further
improvement of the N20 to Cork. The M18 motorway is now complete from Shannon to
Gort and CPO’s have been completed on the Gort/Galway segment of the proposed
motorway. The rail line from Galway to Limerick has been upgraded with a new station
built in Crusheen.
The plans for the development of a new airport authority and the integration of Shannon
Development’s property portfolio and a renewed focus on developing an Aviation sector
offers great potential for the region.
The strategic development of Limerick city as part of the Limerick/Shannon gateway was
hindered by the fact that the metropolitan area fell across a number of local authorities.
This is now being addressed through the amalgamation of Limerick City & County
Councils into a new integrated authority with redefined city boundaries under one
manager.
Limerick City also suffered with a negative image both nationally and internationally due
to anti social behaviour and unflattering press coverage of the social challenges facing the
city. The city has been undergoing a major redevelopment under the Regeneration
scheme, which up to now was delivered by a distinct Regeneration Agency. This activity
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has now been brought back under the control of Limerick City Council and the unified
authority.
The current opportunity presented to the city by the purchase of the Opera Centre site by
the state in 2011 will form part of the new strategic plan for the redevelopment of the city
centre.
At 15.8%, the region has the 4th highest unemployment rate in the country, behind the
South-East, Midlands and West Regions compared with 14.7% nationally. (Note this
analysis refers to Mid West NUTS 3 region which covers Clare, Limerick & North
Tipperary only). There are just over 16,000 people on the live register in County Kerry as
of July 2012, which is 11.3% of the working population in the county.
The region benefits from a number of third level education providers primarily University
of Limerick; Mary Immaculate College; Limerick Institute of Technology (now
encompassing LIT Tipperary in Thurles and Clonmel); and Institute of Technology
Tralee.
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Appendix IX Failte Ireland Proposed Enterprise Support Structure Mid-West
Head of Operations
L2
Client Services Officer
Business & Sports
L4
Client Services Officer
Limerick
L4
Client Services Officer
Clare
L4
Client Services Officer
Tipperary/South Offaly
L4
Client Services Manager
L3
Team Assistant
L7
L2 x 1L3 x 1L4 x 4L7 x 1L8 x 1
Total = 8 WTE
Fáilte Ireland Civil ServiceHead of Operations Principal OfficerClient Services Manager Assistant Principal OfficerClient Services Officer Higher Executive Officer Team Assistant Staff OfficerAdministrative Assistant Clerical Officer
Proposed Enterprise Support Structure Mid-West
Administrative Assistant
L8
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Appendix X Frequently Asked Questions (FAQs)
What decision did the Government make on Shannon Airport Authority’s future?
The Government decided in principle to separate Shannon Airport Authority from the Dublin
Airport Authority (DAA) and bring it together with Shannon Development to form a new
entity with a commercial mandate in public ownership. The announcement was made by
Minister for Transport, Tourism and Sport Leo Varadkar and Minister for Jobs, Enterprise
and Innovation Richard Bruton.
What does the Government decision hope to achieve?
This decision represents a new beginning for the Shannon region, involving a drive to
develop a world-class aviation industry in Shannon, and a restructuring of tourism and
enterprise support agencies in the region to support this goal. Shannon Airport Authority will
be made independent of the Dublin Airport Authority and with the property portfolio of
Shannon Development, the support of the national enterprise, investment and tourism
agencies and a new focus on the development of aviation services be given the long overdue
new beginning it requires to develop and act as a catalyst for the development of the region
generally.
What does it mean for the Airport and the Shannon region?
The Government decision marks a new start for the Shannon region and signals a clear new
focus on developing the potential of the aviation sector within the region, with a newly
independent Shannon Airport Authority, while also making available to the region the full
suite of services and facilities provided by the IDA, EI and Fáilte Ireland. By providing a
new focus for the airport and the region and eliminating duplicated services the proposed
restructuring and bringing together of the two entities is designed to provide a better service
able to achieve more in a more targeted fashion.
What is the time line for the process?
The Government decision agrees the principles of a restructuring and bringing together in a
new entity of Shannon Airport Authority and Shannon Development and mandates the two
Ministers to revert to Cabinet with detailed proposals on the matter before the end of this
year. To aid this process the Government has established a Steering Group.
What is the role of the Steering Group?
The Steering Group is charged with bringing forward proposals for the implementation of the
Government decision on restructuring the State Airports and Shannon Development and the
re-alignment of tourism and enterprise support functions in the Shannon region. It will
develop an implementation strategy for the new body and a plan setting out how the entity
will help to achieve strong regional development. The Steering Group will oversee the work
of two Task Forces; an Aviation Business Development Task Force and a Change
Management Task Force, both of which will report to the Steering Group.
Who is on the Steering Group?
The Steering Group is jointly chaired by Mr. Tom O’Mahony, Secretary General at the
Department of Transport, Tourism and Sport and Mr. John Murphy, Secretary General at the
Department of Jobs, Enterprise and Innovation and includes senior officials from those
Departments as well as the Departments of Finance, Public Expenditure and Reform, and
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Environment, Community and Local Government as follows: John Moran Sec Gen, D/
Finance; John Fearon Asst. Secretary, D/Transport, Tourism and Sport; Dermot Curran, Asst.
Secretary, D/Jobs, Enterprise and Innovation; Ronan Gallagher Principal Officer, D/Public
Expenditure and Reform;
Michael Layde Asst. Secretary, D/Environment, Community & Local Government.
Who is on the Aviation Business Development Task Force and what is its role?
Chaired by Rose Hynes (former member of the senior management team of Guinness Peat
Aviation (GPA) and of the boards of Aer Lingus, Teo and Shannon Airport Authority
Authority and current chair of Bord Gáis Éireann); John Fearon, Asst. Secretary,
D/Transport, Tourism and Sport; Dermot Curran, Asst. Secretary, D/Jobs, Enterprise and
Innovation; Derek Moran D/Finance; Declan Keane Partner KPMG, previously chaired Inter-
Departmental Mortgage Arrears Group; Eamonn Brennan Chief Executive of the Irish
Aviation Authority; Ed Hansom Aviation consultant with RBS Aviation Capital and former
CFO GPA Group Plc; Pat Dalton CFO One51, member of the Board of the Irish Aviation
Authority and former member of the board of the Cork Airport Authority; Michael Tiernan
Businessman in the Mid-West Region; Dr Alan Ahearne Lecturer in Economics NUI
Galway, member of the Board of the Central Bank of Ireland and former adviser Department
of Finance; John McMahon Forum 21;Brian McLoghlin Legal and Aviation consultant,
former Group Company Secretary GPA; Dr. Vincent Cunnane CEO, Shannon Development;
Mary Considine Director, Shannon Airport Authority; Tommy Fanning Manager,
Engineering Division, IDA; Neil O’Sullivan Manager, Engineering Markets Department,
Enterprise Ireland. The Aviation Task Force will look at the feasibility of creating an
international aviation centre of excellence centred on Shannon Airport Authority.
Who is on Change Management Task Force and what is its role?
Chaired by John Fitzgerald (former Dublin City Manager and current chair of the National
Transport Authority, An Post and the Limerick Regeneration Project).
John Fearon, Asst. Secretary, D/Transport, Tourism and Sport; Dermot Curran, Asst.
Secretary D/Jobs, Enterprise and Innovation; Dan Flinter former CEO of Enterprise Ireland;
Vincent Harrison Director, DAA; Mary Considine, Director, Shannon Airport Authority
Authority; John King Asst CEO Shannon Development; Breda O’Toole Head of IR, IDA; Joe
Buckley Cargo & Technical Development Manager, Shannon Airport Authority; Sinead
Buckley Senior HR Specialist, Enterprise Ireland
Aiden Pender Director of Strategic Development, Fáilte Ireland. This Task Force will
develop proposals for transitional arrangements and for the appropriate corporate, managerial
and operational structures of the new entity, including matters related to IT, HR, Finance and
property. In addition, it will draw up proposals for the transfer of Shannon Development
functions to the IDA, Enterprise Ireland and Fáilte Ireland.
What is the mandate for the new entity?
The new entity, while remaining in public ownership, will have a clear mandate to focus on
the commercial development of aviation business in the region and special emphasis will be
placed on the development of the Airport. It will incorporate the airport property and the
property of Shannon Development and will act as a catalyst for economic development by
introducing greater dynamism to the aviation sector. Working with EI and IDA, the new
agency will use its property portfolio in conjunction with the airport business as a catalyst for
the development of strategic sectoral opportunities for the region and specifically within the
aviation sector. It will also, as required, continue to support the property needs of EI and IDA
clients in the region.
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When are Shannon Airport Authority staff going to be consulted as part of the
separation process from the DAA and the setting up of the new entity?
It is agreed that consultation in respect of the business plan etc shall be done through the Irish
Congress of Trade unions on behalf of the staff.
In the event of a decision being made by the Cabinet on the separation of Shannon away
from the DAA, how are Shannon Airport Authority currently preparing for this event?
Project teams from both the DAA and Shannon Airport Authority are currently engaged in
detailed discussions on the planning and operational readiness to achieve this by the 31st
December 2012.
How will the national agencies (IDA, EI and Fáilte Ireland) deliver in the Shannon
region?
There has always been a close working relationship between Shannon Development and the
other agencies mentioned so a smooth transition is anticipated. In addition, each of the
agencies mentioned above have been asked to develop a business plan to deliver an improved
service within the region. The plans will detail how the full suite of EI/IDA supports and
overseas networks will be delivered to enterprises in the region, including: Promotion of the
region for FDI; Supporting exporting enterprises; Developing sectoral opportunities;
Promoting new start-ups; Regional presence; product development; research, development
and innovation; VC support; management development; linkages with Higher Education
institutions; overseas marketing /trade missions.
The plans will also focus on the development of new sectoral opportunities and how the
agencies will ensure that both traditional sectors where the region has strengths and modern
sectors will be supported. These business plans will constitute a key element of the merger
process. The objective with this merger is to eliminate historical duplication of resources and
functions and to deliver a better service to the region with constrained resources. This plan
and restructuring will achieve that ambition.
Will Shannon Airport Authority be separated from the rest of the Dublin Airport
Authority (DAA) on a debt free basis?
The detail of the separation of Shannon Airport Authority from the rest of the DAA are being
worked out, but the overriding priority is that it is done in such a way which makes sense for
Shannon and the DAA and allows both to be viable entities into the future. The Booz Report,
commissioned by the Government last year, believed that such a viable separation could be
carried out.
How many people will the new entity employ?
This is being considered as part of the new business plan and new organisation structure.
How will the new entity operate?
The corporate and reporting structures are issues that will be decided by Government in due
course and will take on board the work conducted by the Steering Group. Three pieces of
legislation are being reviewed in detail, with a view to amending them as required. These are
the State Airports Act, 2004; The Shannon Free Airports Acts, 1959 and 1970, and the
Industrial Development Acts, 1968 and 1986.
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Will the new entity be free to develop its own projects?
The new entity will have a significant degree of regional autonomy in delivering on the
potential of the aviation sector and, working with the IDA and EI, identifying potential new
clusters of growth for the region.
Is there a business plan in place/what are the targets for new entity?
A sustainable business plan is currently being undertaken will be discussed with stakeholders
in due course. What will happen to Shannon Development’s land banks?
Shannon Development has built up a substantial property portfolio that will help the new
merged entity develop the potential of the aviation sector in the region and also to work with
the IDA and EI in delivering property solutions for other areas that offer clustering potential.
What about consultation with stakeholders (e.g. staff, unions, local authorities and
business interests) as plans are developed for the new entity in the region?
A programme of communications with a range of stakeholders has been taking place by the
Ministers, Steering Group and Task Force Groups throughout the process. Ministers look
forward to continued dialogue and full consultation with all interested parties as the process
unfolds.
Will there be redundancies as a result of this merger?
Shannon Development employees are state employees and therefore subject to the Croke
Park Agreement. Staffing at the new entity will be a matter for the board and management of
the new entity.
Will there be a VER/VS scheme?
This issue is currently being examined and if deemed appropriate a limited VER/ VS scheme
may be introduced.
How long will the merger take before being completed?
The two Ministers intend bringing detailed proposals on structures and mandates and
legislative change before the end of the year.
What happens if the timeline is delayed?
It is hoped the indicative timelines will be adhered to, but contingency plans will be in place
to meet any timing changes.
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