Colm Keaveney (Galway East, Fianna Fail) | Oireachtas source

I am sharing my time with Deputy Billy Kelleher.

I woke up quite early this morning, as I do in Dublin, and the headline on the website of the Irish Independentwas "Coalition to sign off on offer to Aer Lingus". However, the sub-headline in the printed edition of the Irish Independentread, "The Labour Party has capitulated to Fine Gael demands and accepted an ... offer for the State's share in Aer Lingus from ... IAG". We had been told there was a gang of seven Labour Party Deputies who would valiantly hold out until the last, but today they professed themselves satisfied with a so-called new, improved, better package - a better offer. They are happy with the facilities being offered in the sale of the remaining stakeholding in Aer Lingus.

The main concerns identified by the gang of seven were outlined at the Labour Party's conference this year. I want to highlight their concerns because there was a skirting around the issue by Deputy Dominic Hannigan with respect to the detail of what the gang of seven had voted on.The first was, "That the bid fails to reflect the true value of Aer Lingus and, therefore, an independent valuation of the assets of the company is required, in particular, a valuation of the 23 Heathrow slots". I congratulate Aer Lingus and the Government for successfully managing in seven months not to increase the offer. Despite the fact that we are in the midst of an alleged economic recovery, the Government has not managed in its negotiations in seven months to increase in the interests of the State the value of Aer Lingus.

The second aspect was, "The need for a firm commitment in the form of Registered Employment Agreements....". I note the Minister's own words that we do not have legislative infrastructure in this country for an REA. I back the dedication, commitment and, above all, actions of Ms Patricia King of the Irish Congress of Trade Unions this morning who categorically said this was a bad deal for workers. It is a bad deal because the Government is not in position to guarantee protection for the conditions and rights of existing workers at Aer Lingus.

The motion concluded as follows: "The need to articulate a plan which would promote Shannon and Cork airports, taking into account their ... business models and impact on their individual operations". The same gang now claim that they are no longer concerned. They are now satisfied and willing to support the disposal of a State asset in Aer Lingus and, shamefully, will do so tomorrow. It is clear that the negotiations at the Cabinet are on the following lines. The Labour Party will support Fine Gael in terms of the disposal of Aer Lingus, while Fine Gael will back the Labour Party on the need for a registered employment agreement. I want to quote what Deputy Brendan Ryan, a Deputy for whom we all have a universal fondness and respect, said at the Labour Party conference:

We oppose the recent deal not out of political self-interest, but because it is a bad deal ... We have not heard any valid reason, for example, why IAG cannot purchase the other 75% of the company and work in partnership with the Irish State.

He went on to say that being a stakeholder in Aer Lingus, the Government was a guardian of the people's interests and that it needed to act in their best interests and the State.

He said the best way the party could judge every single item in the deal was on its own merits. He also said the party needed to oppose the deal and Fine Gael in government on it. He further said: "There may be a deal at some point in the future which will meet all our concerns and copperfasten our connectivity and the terms and conditions of workers' employment."

As the Minister for Transport, Tourism and Sport today in the Chamber guaranteed the Oireachtas that there would not be redundancies in Aer Lingus, Mr. Willie Walsh was holding a press conference and saying there would be redundancies. That is his plan. He will fire hundreds of workers. At the same time we had a Minister saying there were guarantees and another that we did not have the legislative framework to protect conditions of employment. I agree with the comments made by Deputy Michael McNamara in March. He said there was no negativity in holding up a commitment to support workers at Aer Lingus and that he was keen to see increased value. In particular, he was keen to see the regional framework in place and support for the regions in the context of connectivity. He also said: "One of the values of the shareholding is that Aer Lingus cannot be broken up into its constituent parts and sold off." I doubt if there is anyone remaining in the Labour Party who honestly believes the focus of Mr. Walsh is not to break up the company as quickly and promptly as possible, accelerate redundancies and ensure only core elements of Aer Lingus will remain. Tonight the Minister of State may as well say goodbye to security, catering and auxiliary services in Aer Lingus. That is what we will be voting on in the coming 48 hours. If any Member has a shred of honesty towards the people, he or she should put his or her hands on his or her heart and say it is absolutely an untruth that jobs will not be lost. They will be. That is the stated intention of the chief executive. The Minister for Transport, Tourism and Sport said in the House today that there would be no redundancies. At the same time, however, the interested party's chief executive said there would be. How does that tally?

I am confused about the deal that has been announced. While the gang of seven might be satisfied, the monetary value of what was on the table seven months ago and what is on it today begs the question of why are we selling. What is the urgent need to sell a State asset of such significance? There has been some rhetoric in the House today to the effect that Fianna Fáil sold 75% of the company. However, the Government will sell 100% of 25%. Fully 100% of Aer Lingus will be disposed of by the Government. Let that be its legacy, the legacy of those who have not had the courtesy to come to the House to protect the terms and conditions of workers in Aer Lingus.

Let us consider the spin and how the Government is selling the deal to the people. Some 50 years of dividends will be flushed away. The methodology by which the Government has calculated the value of Aer Lingus will be drawn into question in years to come. We talk about a banking inquiry, but there will be an inquiry into the disposal of Aer Lingus. There is no justification for disposing it in the context of the capacity of the country to stand on its own feet. We are €2 billion ahead of the tax profile. Why would we dispose of a brand for which we, as a country, have fought? The dedication and commitment of ordinary people helped to provide a brand, but tomorrow it will be given to British Airways and we will not have something that we can call our own. Something is going on that simply does not add up. It does not stand up economically. It does not stand up today and it did not stand up seven months ago. The Government's logic on the Heathrow Airport slots simply does not add up. It is selling a significant entity for which the people of the country fought tooth and nail in bad times. What is the logic of disposing of this asset? Perhaps it is ideological and the Government has listened to some focus group suggesting the Tory element of the Government will secure one or two extra points in next Sunday's RED C poll. Let it be the legacy of the Labour Party which will turn around to workers in north County Dublin and tell them to say goodbye to their pay and conditions of employment.

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