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Shannon Development Annual Report 2001 Sd02-119 Annual Report 2001 ... priority must go to investment“ in activities based“ on the production, distribution, and use of knowledge and information. SHANNON DEVELOPMENT ANNUAL REPORT 2001 SHANNON DEVELOPMENT ANNUAL REPORT SD02-119 Cuideachta Forbartha Aerfort Neamhchustam na Sionna Teoranta Pn 11234 Shannon Free Airport Development Company Limited Shannon Development – a Brief Profile Set up in 1959 to promote Shannon International Airport in the post-jet era, Shannon Development is today, Ireland’s only dedicated regional development company. The Company’s brief is to generate industry, tourism and regional development in the wider Shannon area, known as the Shannon Region. This covers an area of some 10,000 square kilometres spanning counties Clare, Limerick, North Tipperary, South Offaly and North Kerry, which collectively have a population of over 407,000. The mission of Shannon Development is Pioneering Regional Development for the Knowledge Age, and over the past forty years the Company has worked, singularly and with many different ‘partners’ from the statutory, community and private sectors, to develop the region to its full potential. Shannon Development’s primary focus is to identify the critical needs or obstacles to development in the region, and to lead and encourage the identification and development of solutions. The Company strongly communicates its position, and plays a key leadership role, in relation to important regional development issues, such as airport access, transport infrastructure, and broadband connectivity. Its key activities include: • Developing and strengthening the indigenous industry sector in the Shannon Region, and building up a knowledge age culture through targeted supports for enterprise. • Continuing to develop and manage the Shannon Free Zone as a world class location for international investment in manufacturing and internationally traded services. • Developing the Shannon Development Knowledge Network – a network of leading-edge technology business locations with direct linkages to third level educational institutions. The network includes the National Technology Park in Limerick, Kerry Technology Park in Tralee, Tipperary Technology Park in Thurles, Birr Technology Centre in Offaly, and Information Age Park Ennis in Clare. • Developing new tourism marketing programmes and new tourism products in the Shannon Region, in conjunction with the industry, to proactively respond to the many challenges facing Irish tourism. •Managing commercial tourism businesses, e.g. castle banquets and day-visitor attractions, through a wholly owned subsidiary company – Shannon Castle Banquets & Heritage. • Leading and encouraging regional development at urban and rural levels to ensure economic inclusion and balanced spatial development. CO. OFFALY GALWAY DUBLIN (SOUTH) LIMERICK CORK BIRR CO. CLARE NENAGH ENNIS Ocean CO. TIPPERARY SHANNON ✈ (NORTH) Atlantic LIMERICK CO. LIMERICK CO. KERRY (NORTH) TRALEE CONTENTS Company Statement 2 Review of the Year 6 Company Organisation 21 Directors’ Report and Financial Statements 31 Company Offices 67 Shannon Development’s business is regional development. Its mission is: 1 “Pioneering Regional Development for the Knowledge Age.” In accordance with the terms in paragraph 2(2) and 3 of the Schedule to the Shannon Free Airport Development Company Limited (Amendment) Act 1970, the Company presents the Report and Accounts for the year ended 31st December 2001 to the Tánaiste and Minister for Enterprise, Trade and Employment. SHANNON DEVELOPMENT ANNUAL REPORT 2001 COMPANY STATEMENT 2001 was a difficult year for industry and fulfils national needs; operates across a tourism in the Shannon Region but despite range of sectors but in an integrated way; the difficulties there were positive develop- has an asset base that can be used to initi- ments during the year which give confi- ate and deliver complex but innovative dence for the future. Challenging times projects at minimum cost to the taxpayer; generate creative responses. The Shannon and provides a model of regional develop- Region has participated fully in the resur- ment action for the knowledge age. gence of the national economy over recent years, equally, it was not immune to the Shannon Development’s future focus will general slowdown in economic activity in be to identify the critical needs or obstacles 2001. to development, and to lead and encour- age the identification and development of The radical change in the economic envi- solutions. This is why we have, in recent ronment which we have witnessed in 2001 times, strongly communicated our position highlights the challenge for Ireland as a in relation to key regional development modern economy and the need for new issues, such as airport access, transport 2 solutions to the issue of regional competi- infrastructure, and broadband connectivity. tiveness. The relative importance of manu- facturing activity as a driver of economic Shannon Development places a high prior- growth is reducing. If the economy is to be ity on the creation of an enabling environ- re-invigorated in a way which ensures that ment for entrepreneurs and businesses that all share in the fruits of success, then higher can generate globally competitive and priority must go to investment in activities knowledge based enterprises which gener- based on the production, distribution, and ate significant wealth for shareholders, use of knowledge and information. employees, suppliers, the community and other key stakeholders. That is why the Against this background, Shannon Company has invested significant financial, Development has set out its mission for the physical and human capital in the develop- future as pioneering regional development ment of projects such as the Shannon for the knowledge age. This means that we Development Knowledge Network – world will concentrate on researching, concepting class locations for business and life - linked and pilot testing a range of innovative directly to third level education facilities actions that will generate regional compet- throughout the Shannon Region. itiveness and accelerate economic develop- ment. If successful, these actions can be That is why the Company intends to estab- mainstreamed and delivered by others at lish a consortium Shannon Broadband with regional, national and international level, the local authorities in the Region, as a while also making a significant contribu- mechanism to facilitate delivery of world tion to Ireland’s development as a leading class broadband connectivity at competi- player in the globally competitive knowl- tive prices. That is why, in response to the edge based economy. challenges facing the tourism industry, Shannon Development established the This calls for new thinking and new Tourism Action Force, which brings approaches to economic development. The together Shannon Region and West of Shannon Region can make an important Ireland tourism interests, to undertake contribution to this process by becoming a positive actions to increase tourism busi- model for pioneering and testing new ness in 2002. approaches to the development of regional competitiveness. This is the optimal way to position the Shannon Region as a powerhouse for In this way, Shannon Development provides future economic growth. The greatest a regional development laboratory, which results can be achieved by developing a is close to the regional customer base but strong Atlantic economic corridor, stretch- SHANNON DEVELOPMENT ANNUAL REPORT 2001 COMPANY STATEMENT ing from Cork/Kerry through the Shannon In this context, Shannon Airport is a critical Region to Galway/Sligo. This would lead to part of the infrastructure of the entire west re-energised thinking while also providing coast of Ireland and an engine for its devel- a counterbalance to the explosive growth opment. At a national level, the airport can currently taking place in the greater Dublin play an even greater role in helping to area. The Limerick – Shannon – bring about more balanced regional Ennis gateway is already well developed, growth. Within the context of the vision of and has the potential to grow even further the western cities acting together and pro- and drive additional economic growth viding counter balance to Dublin, Shannon throughout the Shannon region. Acting Airport is strategically situated at the cen- individually, regional centres cannot be a tre of that alliance. For this reason, the serious counterbalance to the critical mass national response to the current difficulties of Dublin but acting together they have the facing the aviation sector must take full potential to rebalance growth towards the cognisance of the strategic role of Shannon Atlantic seaboard. Airport as an instrument of regional devel- opment. 3 Shannon Development believes that strate- gic alliances of this nature, which do not The key to Ireland’s future economic success impact on administrative boundaries, have in the global economy lies in its ability to the potential to generate significant eco- achieve the same success in the knowledge nomic impact and to greatly contribute to economy as it has in the traditional indus- the Government’s commitment to balanced trial economy. regional development. Drawing on its practical experience of the Liam McElligott development challenge over many years Chairman Shannon Development has actively inputted to government deliberations on Kevin Thompstone the development of the National Spatial Chief Executive Strategy. The Company fully supports
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