Dáil debates

Wednesday, 27 May 2015

Aer Lingus Share Disposal: Motion (Resumed)

 

2:35 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent) | Oireachtas source

I am grateful for the opportunity to speak in this important debate on the future of Aer Lingus. The way this issue has been handled so far, and particularly last night, is a disgrace. I was attending a residents' meeting in Clongriffin, in my constituency, at about 9 o'clock last night when I heard the news. I then heard about the plan to have the rushed debate at 10.45 this morning. That shows a complete lack of respect for this House and its procedures but, more importantly, the Irish people. Rushing this debate is not good enough for anyone, and the Government should know that from past experiences.

People have genuine concerns about this issue, and those concerns must be dealt with. My concerns arise from having listened to those on all sides of the debate and representing the best interests of the staff, the former pensioners and the people. When we raise concerns we have to be listened to, and those concerns must be teased out.

My first concern is job losses. That is a reasonable concern, and we must focus on it. There are people who work in the aviation sector who said they could see the possibility of 1,200 job losses in the coming years yet the Minister is telling us their will be job gains. That is a question to be answered. In terms of history, Iberia Airlines has shed 4,500 jobs since it was taken over by IAG.

The other concern, and I am sick and tired raising it here and sick and tired of the Government not listening, is that we still do not have a resolution to the unjust situation faced by the deferred members of the Aer Lingus pension scheme who are now facing huge cuts to their entitlements, aided by this Government motion. Those are my three immediate concerns.

We need good inside information on Aer Lingus. I have got many letters on this issue but I received one this morning from a woman who is a current Aer Lingus worker. I will read a small section of the letter. It states:

I am an aer lingus worker and am very worried about the security of my job with the sale of our fabulous airline. Have our government learned nothing after the sale of Irish ferries and eircom. To me this is a short term gain for long term pain to all employees of aer lingus. Aer lingus management are set to gain lotto figures with this sale so they are of course pushing this sale.
That woman is a credible member of the staff and I ask the Minister that, when he is responding, he would address those genuine concerns from members of staff.

There is a lack of informed debate on the reason this proposal is being rushed through the House, with the vote being held tomorrow evening. There is a lack of respect for the Dáil and the people. As the Minister knows, Aer Lingus has adapted and proven itself in a competitive market.

I have other concerns regarding how consumers will fare. Will this prove to be anti-competitive? The coveted Heathrow slots will be gone. That is a reality. Competition has been a friend of Irish travellers for the past number of years. In 1985, an airline ticket from London to Dublin cost in the region of £569. Today, one can buy a ticket for €35. The competition issue has not been addressed in a proper and sensible way.

Aer Lingus has survived tougher times. Why is now the best time to sell it off? We must consider the broader picture, outside the economic issue. The staff issue is a concern also. We must also ask if this sale is in the national interest. Is this a hostile takeover by IAG which will bypass the public interest? How can the Minister say he will have more control when he no longer has any shares than when he owned 25% of shares? Those are the type of questions people are asking me.

Aer Lingus is a great brand, and we are all very proud of it. I have many family members and friends who worked in Aer Lingus. As the Minister knows, Aer Lingus is highly profitable. We also know that Aer Lingus is vital for tourism, foreign investment and job creation.

In terms of this lack of informed open discussion and the rushed decision, we are not looking at the valuable asset. There has also been a sneaky attempt by certain sections, both in government and outside Government, and those who will gain financially, to distort public opinion. I have seen that in the past 12 hours. We need to wake up, smell the coffee and examine the real issues.

There has been a grave injustice against the IASS pensioners. Another letter I received this morning was from one of those people in which he stated:

So much for the protection of Irish workers but in particular the people who have been robbed of their rightful pension. We now have uncertainty and hardships to look forward to in our old age. All politicians who go along with this sale without any reference to our group, the IASS deferred pensioners, should hold [their] head in shame. In particular the members of the Labour party. You all disgust me but at least myself along with my extended family and friends who are shocked and dismayed by your treatment of me and my pension are looking forward [to] casting their vote...
Those are the type of situations we are dealing with. Those are real stories from pensioners and people who work in Aer Lingus.

Another issue on which all those on the opposite side of the House have ducked and dodged in the past 12 hours is customer service. Aer Lingus had a fantastic international record and a very valuable asset. It acted as an ambassador for Ireland. In 2011, it celebrated its 75th birthday. It has outlasted companies like Pan Am and TWA. What a record. What a group of people, but now the Minister is saying the company is not financially viable.

The Minister should always learn from history. He should recall the 1960s when it was decided that the famous Harcourt Street line, which went to Bray, was not economical or fashionable and that it should be closed down. Today, it is part of the Luas Green line. Economic arguments were presented at that time against retaining it but they have been exposed as being hollow.

We need to preserve a vital infrastructure. We should not discard a company like Aer Lingus. We cannot afford to lose the connectivity Aer Lingus provides, and we cannot afford to lose the potential to create thousands of jobs. Aer Lingus has served this country well. Aer Lingus is a profitable company. Aer Lingus has an excellent brand. It is time for people to look at the facts and hear the economic arguments I put forward today. We should put the national interest, the interests of the staff and the pensioners first. I ask the Minister to respond to the issues I have raised.

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