Dáil debates

Wednesday, 27 May 2015

Aer Lingus Share Disposal: Motion (Resumed)

 

7:05 pm

Photo of Joe O'ReillyJoe O'Reilly (Cavan-Monaghan, Fine Gael) | Oireachtas source

I have three concerns I would like to highlight during this debate. Like many of my colleagues, my first concern is the general, economic and social well-being of our country into the future so that our people will have the best possible standard of living, the best possible employment and the best opportunity for a good quality of life. My second concern, which was addressed by the previous two speakers, is the maintenance of the fundamental character of Aer Lingus, its brand name, our pride in it and its role as a marketing tool for Ireland. My third concern is very important. I represent the same constituency as Deputy Ó Caoláin. There are many people in my constituency who commute to work in Dublin Airport. I know of a few people from my town of Bailieborough who travel to Dublin Airport to work. This would be a feature across south Monaghan, Cavan and so on. I am deeply concerned about the security of their jobs and those of the people from across Cavan-Monaghan who commute alongside them to work at Dublin Airport. These are my three concerns regarding this matter.

It is worth noting that some 4,000 people are employed by Aer Lingus and that aviation supports 26,000 jobs directly in this country and some 16,000 jobs in the supply chain. Tourism, which is significantly linked with the industry and is intricately linked with this debate, employs 180,000 people here.

The Minister has had a departmental steering group and advisers engaged in discussion with IAG over a number of weeks and months on the issues of employment creation and retention and I applaud him on the extraordinary, skilful and professional manner in which he has dealt with the issues throughout this time. He has kept the national interest to the fore at all times and has bargained toughly and consistently and scrutinised every sub-clause in every proposal from IAG. We are very lucky to have had someone with his skills to do that. The process has continued over weeks and he has done well.

Today, I asked the Minister and a senior official of Aer Lingus on behalf of my Cavan-Monaghan constituents how we will fare in regard to job retention, new jobs, standards, salaries, working conditions and agreements etc. I was assured by the Minister, and I accept his assurance totally as it is part of the agreement, that 200 new direct jobs will be created before the end of 2016 in Aer Lingus as a consequence of the deal, expanded business and new destinations. Some 50 jobs will be lost, however, in the process, in back office areas. However, the 50 jobs lost will be absorbed by voluntary restructuring, redeployment and ongoing voluntary severance, which suits certain people at a particular juncture in their lives. Jobs will come from investment in the Aer Lingus fleet and route expansion. Up to 2020, some 635 jobs will be created. Some 470 of these will be pilot and cabin crew, 165 will be engineers and the remainder ground staff. As a result of increased connectivity, more flights and activity, a greater volume of business coming through the airports and the increase in destinations, the volume of tourism and all that goes with it will also increase.

An important part of the agreement that will, hopefully, be agreed by the Dáil is the safeguarding of the current rights of employees. I was delighted to receive assurance from the Minister on this. Not only will new jobs be created and existing jobs be maintained, the rights of employees will be safeguarded. IAG will re-register existing employment agreements and these will have legal standing. This reassurance is critical.

The buzzword in this debate is "connectivity". We are all concerned that Ireland will not lose any outward or inward flights or business and that we will have access to other countries and markets. It is essential that Aer Lingus remains a competitor for the well developed airline, Ryanair. In the context of connectivity, Heathrow is the most significant destination airport from Dublin. The destination for some 8% of seats is Heathrow, some 3% and 2% go to Paris and Amsterdam respectively. Some 20% of seats from Cork and some 25% from Shannon go to Heathrow. Heathrow delivers a comprehensive service of long haul flights across the globe, with flights to 180 destinations in 85 countries provided by 82 airlines. Therefore, the slots, access, entry and continuation of flights from Ireland to Heathrow are of vital national interest.

Under the terms of the agreement, the Minister for Finance, in consultation with the Minister for Transport, Tourism and Sport, will ultimately have a veto on the sale of the slots. The sale of the slots cannot legally arise for seven years. This veto is critical. I believe that we will see such an improvement of business as a result of more global marketing and a more enhanced trading position that the sale of the slots will not arise. We will have such a volume of business that we will have significant use for the slots and Aer Lingus. Nonetheless, it is important for us and the workers that we have the legal guarantee.

All Aer Lingus current winter and summer daily schedule frequencies will be maintained for seven years and all of Aer Lingus's flights to and from Heathrow from other Irish airports will continue for the first five years. In other words, airports around the country will be protected for five years. It is worth noting that these are guarantees we do not have currently. These are critical enhancements. Other enhancements are the expanded number of jobs, this guarantee and a better tourism product. For the 2016 summer season, two new transatlantic destinations in North America will be added to the Aer Lingus schedule. By 2020, four new transatlantic routes delivering 2.4 million more passengers will be in existence. Therefore, we will have the sales and marketing potential of the larger IAG group. This rationalisation is a pattern throughout the aviation industry across Europe and the list of exceptions to this kind of merger would be a short one. Those airlines operating alone are not very successful. We need access to global markets for long-term success.

In his contribution this morning and in previous internal party communications, the Minister referred to the fact that he had to avoid a situation where there might be a disadvantageous or aggressive takeover in future that would not be in our interests and needed to protect the airline against an adverse situation that might arise later.

Finally, I would like an assurance from the Minister when he responds on this debate regarding the moneys earned from the sale. He mentioned using the proceeds for connectivity. I hope he can assure me that some of these moneys might be used to ensure we can get broadband delivered to areas such as Cavan and Monaghan and rural areas across the country where it is not currently viable to deliver it. I would like to hear the Minister say the moneys accruing from this sale will deliver this connectivity. Following his assurance to me on the delivery and retention of jobs, the promise of the delivery of broadband connectivity would be most reassuring, particularly in an area like mine which is effectively a commuter area as a result of the newly developed motorways.

All in all, this is the best call for the country and will serve the country's interest best.

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