Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy for his question. As I have previously said on a number of occasions, the IASS and its funding is a matter for the trustees, the companies participating in the scheme, the scheme member and the Pensions Authority.

The Deputy will be aware that the trustee proposal which was approved by the Pensions Authority and implemented on 31 December 2014 includes a contribution by Aer Lingus and DAA totalling more than €260 million, which includes €60 million for deferred members. The IASS trustee has confirmed that the measures being implemented are in the overall best interest of the members of the IASS as a whole and are fully compliant with national and EU law. Not to have taken the course of action that I did would have meant going against the explicit recommendations of those charged with managing the fund. It would have taken the largest pension fund in the country into uncharted territory, with many risks, including the risk that the scheme would be wound up.

With regard to the proposed sale of the State's shareholding in Aer Lingus, I have consistently set out the Government’s position on the issues that it would take account of in considering any offer for its shareholding in Aer Lingus. In addition to price, the other issues that will be examined include connectivity to and from Ireland, including direct transatlantic services and connectivity via Heathrow, competition in the air transport market, jobs in Irish aviation and the Aer Lingus brand.

The specific issue raised by the Deputy in the event of a sale is a matter for the Department of Finance and the Department of Public Expenditure and Reform. However, the Deputy's suggestion raises two issues: first, how such an investment could be made without prompting further demands on a deal that has taken many years to negotiate; and second, the consequences of a direct investment by the taxpayer in a private pension fund when many other pension funds are in serious difficulties.

See this speech in context