Peter Power (Limerick East, Fianna Fail)

In the very limited time available to me I wish to identify a central weakness of the argument in Sinn Féin's motion. It fails dismally to recognise the environment in which Aer Lingus and the aviation sector operates and where the only constant is constant change. Neither the motion nor any of the speakers referred to the fact it is the most cyclical of all international business. They do not refer to the ultra-competitive environment in which Aer Lingus operates. The motion does not appreciate the reality in which Aer Lingus operates. No modern country in Europe is investing money in airlines; practically all of them are divesting themselves. The motion does not seek to explore the reason, which is very simple. In the modern aviation environment, cut-throat competition means an airline requires flexible access to capital markets and cash. It is an industry that depends on sophisticated financial instruments and Government control is not in the best interests of the airline. I refer to Gerry Byrne, an aviation expert, who wrote in today's edition of The Irish Times that it is a quaint anachronism.

The argument is put forward that there is no ban on Government investment in good times. I suggest it does not at all recognise the reality that money is certainly needed in the good times but more important, it is needed in the bad times. Governments cannot invest in airlines in the bad times. As sure as night follows day, there will be bad times. There have been bad times in the airline industry since its inception. Where would Aer Lingus be without access to capital, without access to flexible and immediate equity? It would be down the Swanee and we would be blaming the proposers of this motion. I support the Government's amendment.

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