Seán Ryan (Dublin North, Labour)

I thank the Ceann Comhairle for the opportunity to raise this important issue, the future of Aer Lingus. I wish to share time with Deputies Broughan and Shortall.

The proposed takeover of Aer Lingus by Ryanair would be a disastrous development for the air travelling public, the strategic interests of our country and the workers in Aer Lingus. It is the type of situation we in the Labour Party warned could arise from the Government's ill-judged and unnecessary decision to privatise the national airline. It gives me no satisfaction, as a Deputy from the Dublin North constituency where thousands of Aer Lingus workers and their families live, to say "we told you so".

Last July, we had a successful and viable State airline in competition with a strong private airline which was to the benefit of the commuter. Now we are faced with the prospect of a privately-owned monopoly, with the bulk of its business located outside the State, controlling most of the air traffic in and out of Ireland. This is not in the strategic interests of this country and must be prevented. The privatisation of Aer Lingus is akin to selling the family jewels.

The Government assertion that the majority sale of Aer Lingus would increase competition, employment and the growth of Aer Lingus has been proved to be a smoke screen. I am not an economist but I share the view of many of my constituents who ask how come Aer Lingus was sold off at such a ridiculously low price, and who were the main beneficiaries because the State certainly was not one.

The revelation that Ryanair has acquired 20% of the shareholding in Aer Lingus and is intent on becoming the majority shareholder shows the immediate need for the Government to protect Aer Lingus from a takeover bid. The workers of Aer Lingus have lost confidence in the ability of the Minister to prevent a takeover. Apart from endeavouring to justify the sale of Aer Lingus, the Government seems to be concentrating on one avenue only, the regulatory appeals system within the European Union. If this fails, the State should seriously consider buying back shares to prevent the takeover of the company. We told the Minister he was going down the wrong road and have been proved correct. It is up to the Minister and everyone in this House to pull back and to prevent the takeover of Aer Lingus.

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