Finian McGrath (Dublin North Central, Independent)

I thank the Chair for the opportunity of speaking on the important issue of the general principles of the disposal of shares in the Aer Lingus group. I am 100% behind the staff and pensioners of Aer Lingus. I gave a commitment to support them on this important issue and today I stand by that commitment. Unlike other Deputies, I will not duck or dodge on this important matter. I commend and pay tribute to all Aer Lingus pensioners. They are part of the team that built up the airline and should be looked after in a fair and decent way.

According to management and the Minister, the effect of the flotation will be to raise only €400 million out of the €2 billion required for capital investment and development. That being the case, the Government would have to match a relatively small amount of money as an investment, particularly given that it has committed a significantly larger sum of €34.4 billion to road and rail infrastructure under Transport 21. As is well established by virtue of EU competition rules since at least 1984, and subsequently recently further clarified on foot of queries by a number of MEPs, the State is well capable of making such an investment on the market investor principle within EU rules.

An alternative, which I support, was offered by the ICTU in the State holding company proposal, but it has been effectively brushed aside without discussion by the Department of Finance. Nevertheless, to date, no detail has been offered by the Government as to the size of the retained shareholding — conversely the amount to be divested — other than a commitment to retain a minimum of 25.1%.

I am opposed to the sale of our national airline, Aer Lingus. It would be bad for workers, the economy and damaging to the national interest. I urge all Deputies to support the Aer Lingus staff and come out against privatisation.

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