Seán Ryan (Dublin North, Labour)

I am pleased to speak in support of the motion on Aer Lingus. However, the future ownership of the company has already been decided by the passing of the Aer Lingus Act 2004. The Government's decision to sanction a majority sale of Aer Lingus is a betrayal of the company and its workforce who have served this country so well over the years and, given their record in recent years, they could continue to do so successfully in a public enterprise. It is worth noting that the company's operating profits for 2004 were €107 million, an increase of nearly 29% on the previous year and a profit of €63.8 million in 2002. The decision to cede control of a majority shareholding could be a disaster for the country, air travellers, employees and the greater Dublin area.

The Labour Party has long argued the importance of keeping Aer Lingus in public ownership. The logical conclusion of the Government decision, however, will in time probably see control of the airline passed to a major competitor such as British Airways. In such circumstances, it is ironic indeed that Mr. Willie Walsh, the former CEO of Aer Lingus, whose position in the company was made totally untenable by the Taoiseach, could well have the company back under his wing.

Aer Lingus has a major strategic role in the economy of the country. We are an island economy and without a national airline Ireland could suffer dramatically from the fickle nature of the airline industry, should control of the company pass into the hands of people with no commitment to the country. Tourism is our second largest industry and it depends to a significant extent on the aviation industry. Given our peripheral location and relatively small population, it is vital that we have an airline prepared to balance the need for profit with the strategic interest of the country.

The Government decision to send out Ministers and backbenchers to try to convince the public that the retention of the so-called golden shares — 25% of the company — can protect its strategic assets is open to serious question. My colleague Deputy Shortall has highlighted that in 2003 the European Court of Justice decided that it was illegal to hold a golden share that would protect such strategic interests. It is imperative that the Minister, in summing up, addresses the issue this evening. It is obvious that he is not interested.

As an island nation, access to and from our shores is a key issue that cannot be left in the hands of private operators. That is the position that Fianna Fáil public representatives in north Dublin have warmly welcomed. These are changed times indeed, and I wonder how they can convince the electorate of the necessity of the change. There is a real alternative to the privatisation agenda being put forward by the Progressive Democrats and Fianna Fáil. There is no disagreement that Aer Lingus needs access to investment capital. The way forward is for the Government to accept the Labour Party's proposal from its last general election manifesto, which is now also the position of the Irish Congress of Trade Unions, to establish a public enterprise management company that would source the necessary capital in future. It should be noted that the national pensions reserve fund has invested €600 million in overseas companies, including airlines, in recent years. All that is stopping the Government from investing in the expansion of Aer Lingus, one of the most successful airlines in the world today, is ideology.

In the context of a real debate on our future direction, we needed to get the media on board, but unfortunately they were not interested. Once again, the Government has set its eyes on privatisation, which will be a disaster.

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