Shannon Development chief executive Kevin Thompstone has warned it would effectively be "unable to function" if the Government presses ahead with plans to sell off its substantial asset base.
Mr Thompstone was speaking in Limerick yesterday at the launch of the regional economic development group's annual report for 2004.
Shannon Development has an asset base, comprising a property portfolio with a book value of €150 million, although its market value could be several times that figure. This asset base generates an annual rental revenue of €18 million, mostly in the Shannon Free-Zone, and a capital income of €10 million per annum.
Government proposals to transfer the asset base to the Shannon Airport Authority to cover the projected gap in the airport body's income base have been opposed by Shannon.
Mr Thompstone said yesterday the asset base provided a crucial lever for generating funds to drive economic development and enterprise in the region.
However, he said there may be an alternative to the transfer of assets and hinted that some of the asset base could be freed up by Shannon Development to provide a financial solution for the new airport authority.
"There is an ongoing dialogue with the Government and the Minister," he said. "We have put forward strong arguments as to why the asset base is critical and our sense is that the argument is getting through.
"There are other ways of addressing financing and we believe we can leverage the asset base to resolve the problem," said Mr Thompstone.
At the launch of the annual report, Shannon Development chairman Liam McElligott also stressed that a strong mandate and resources were vital for a thriving regional economy.
"Shannon Development has the expertise and ability to galvanise all public and private stakeholders in the region under a common vision and framework for action. We will drive our vision to make this region one of the most forward-thinking regions in the world for its people, for investors and for visitors," he said.
The report emphasised that key infrastructural projects in the Shannon Airport catchment area must be accelerated to provide access to the region for people, goods and services.
These include the provision of a motorway from Shannon to Galway, the completion of the fourth river crossing in Limerick city, the reopening of the Ennis to Galway rail link and developing a rail link to Shannon Airport.
Total employment in Shannon Development-assisted companies in 2004 was 19,739, a net increase of 29 jobs on 2003, generating sales of €4.4 billion. Among the tourism highlights for 2004 was Ryanair's decision to locate its 12th major European base at Shannon Airport, with the provision of several new routes from continental Europe and the UK.
Several other airlines including EUJet, EasyJet, Thomsonfly and Hapag Lloyd Express have also recently launched new services from Britain and Europe to Shannon.
