shannon airport shannon development change management task

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SHANNON AIRPORT/SHANNON DEVELOPMENT CHANGE MANAGEMENT TASK FORCE (CMT) FINAL REPORT

2012

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

rac

le &

Da

tab

as

eC

on

tra

cts

&

Ne

go

tia

tio

ns

We

bNov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013

Mis

ce

lla

ne

ou

sD

eskto

p &

Win

do

ws

Ne

two

rks &

Infr

astr

uctu

re

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


Participants on other EI Management

Development Programmes (100hrs+)


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


Limerick

L4


Clare

L4


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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