Oireachtas Joint and Select Committees

Wednesday, 7 October 2015

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Proceeds of Sale of Aer Lingus: Motion

4:30 pm

Photo of Sean BarrettSean Barrett (Independent) | Oireachtas source

I opposed this deal at all stages. I believe it was extremely misguided on the part of the Government to sell its airline to British Airways, one of the dinosaurs of European aviation. British Airways, Air France and Lufthansa have done nothing for European aviation. If we had wanted to sell it – and I would not agree with the sale – EasyJet would have been a better purchaser, but the Government chose to give it to British Airways.

There is no doubt that the airline will be run down. Scotland has no international services on the North Atlantic, we developed nine routes. Aer Lingus was worth something to this country. It had an image abroad, particularly in the United States of America, all of which has been thrown away. Parliament was treated with contempt. The Aer Lingus board - the members of which have all since resigned - came before this committee. The Secretary General at the Department of Transport refused to appear because he said he was bound by the Stock Exchange's takeover rules. Such behaviour would be an affront to any parliament. There was a media campaign which we won in the opinion polls.The Irish Times-Ipsos-MRBI polls showed a majority of more than two to one in favour of retaining Aer Lingus. With the Ryanair stake, the Government stake and the staff stake, an Irish airline could have been built that could have taken on British Airways in its home market and won. But this was a conservative decision and I do not know why it was taken. I received endorsement for Aer Lingus from the late Professor Alfred Khan, one of the leading US experts in this area, but I do not know what got into the Government.

I am not here to accept a consolation prize. It is deeply ironic that, having sold the airline, the Minister of State is now trying to devise another way to increase connectivity – an oxymoron if there ever was one. I am sorry the Minister of State has been given this inhospitable path to tread because mostly I support what he does when he comes into the Seanad. Allowing an offshore island to sell an airline for €300 million was crazy. British Airways now has a monopoly to Heathrow and must be laughing all the way to the bank every day at the foolishness of the Irish Government to have done that deal. So what will we do with the money? I do not see the point in investing it in airports or sea ports. The idea first run last week was a metro to the airport and, as the economist Colm McCarthy pointed out, it would be slower than the bus from Busáras, it would be slower than the bus from Sandymount-----

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