Arthur Morgan (Louth, Sinn Fein)

The decision to privatise Aer Lingus is scandalous, as Deputy Crowe outlined. It has the ability to seriously undermine the long-term strategic interests of this State. The decision is a slap in the face to the employees who are working to sustain the company's growth and profitability. This decision to sell a majority share in the State airline has been accurately described by SIPTU's national industrial secretary, Mick Halpenny, as a grave strategic error for the workforce and the country, and he is right.

Sinn Féin commends the workforce past and present for building that company over many years and making it one of the foremost airlines globally and a valuable State asset. This State should be very proud of its national airline and should realise what an asset it is to the country. Once we lose control of the national carrier, there is no guarantee that in an economic decline any airline would continue to serve the State if it deemed it was not profitable to do so.

What is the reason behind the sale of Aer Lingus? The truth is it is purely ideological. Opposition to public ownership of any kind is a core principle of the current Government, regardless of economic and social consequences of such actions. It does not even matter if such actions have the potential to seriously undermine the strategic interest of the State. We are told every other state is privatising its airline so we must do the same. That is absolute nonsense.

Many of those who salivate with desire to privatise Aer Lingus seek to emulate Ryanair. There is nothing glorious about an airline which treats its workers and, indeed, its customers with contempt, as Ryanair does. There is nothing to aspire to in its anti-union practices or its discriminatory policies towards the disabled. Workers at Aer Lingus, who have committed to restructuring the company and making it profitable once again, are now faced with the serious implications which this decision poses for job security and working conditions.

There is serious concern regarding reports that there is a deficit in the company's pension scheme which is shared with the Dublin Airport Authority. Media reports have claimed that this deficit was of the order of €243 million. I understand this was never signalled to the Aer Lingus unions and that they received an assurance from Willie Walsh that all was well with the pension fund. What happens to pension entitlements in the event of privatisation if there is this level of debt? I ask the Minister for Transport to clarify the status of the pension fund, if and when the Government intends to set up a separate Aer Lingus pension fund and how such a fund will be financed.

In 2003 my colleague, Deputy Crowe, correctly warned that the Aer Lingus Bill was paving the way for the break-up of a successful company, the loss of thousands of jobs and the destruction of a strategic pillar of the economy. That Bill enabled the Minister for Finance to sell the State's shares in Aer Lingus at any time. The Bill also provided for the employee share ownership plans at Aer Lingus. The Aer Lingus ESOP was disguised by the Government as a reward for the effort of the workers in Aer Lingus in turning the company around. The State has used employee ownership as a key element of its privatisation programme for Aer Lingus. It has been clearly stated by those who promote ESOPs that they offer a practical means to jump start the privatisation process by organising a shareholder group which has a vested interest in working for the full privatisation of the enterprise.

Sinn Féin will continue to oppose fully all plans to privatise Aer Lingus which, in the common good, must remain in public ownership.

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