Séamus Healy (Tipperary South, Workers and Unemployed Action Group) | Oireachtas source

I welcome the opportunity to speak on the proposed disposal of Aer Lingus shares by the Government to the UK multinational, IAG. The Government assumed power in 2011 amidst a self-proclaimed democratic revolution. Its programme for Government listed the many reforms it would implement to create what is called "a fairer and more equal Ireland". One such reform was Dáil reform, which set out, in its own words, to "deal with the problem of legislation being shunted through at high speed". The manner in which this motion is being bulldozed through the Dáil makes a mockery of those reforms and, more seriously, is an abuse of the democratic process and the Government's power. The Government has made a concerted effort to keep members of the Opposition in the dark over the details of the motion while ensuring the media and everybody else were fully briefed. This is an unprecedented level of arrogance from the Government and is grossly disrespectful to Members of Dáil Éireann who have been elected by the people. It smacks of a Government which is rapidly trying to clear the decks before the next general election.

Deputy Costello's contribution a few minutes ago highlighted the other reason for the rush through the House, namely, to protect windy Labour Party Deputies across north Dublin, who gave commitments and promises to deferred pensioners and Aer Lingus workers that they would oppose this deal. Like many in the House, I received an e-mail late last night from one of those deferred pensioners and it is worth noting the first few sentences of it, as follows:

As you will be aware, Joe Costello TD stated publicly on the Pat Kenny show that deferred pensioners should be factored into any sale of Aer Lingus agreed by the Government. This outcome is one that would save deferred pensioners such as myself from an old age of poverty and I urge and plead with all right-thinking TDs in a position of responsibility and power, especially Labour Party TDs, to support Joe in his public stance on this matter.

That says it all. The level of cynicism from the magnificent seven Labour Deputies of north Dublin is shocking. The proposed sale of the shares is bad for jobs, Aer Lingus workers and Ireland's connectivity and economic development.

Last month The Irish Timesreported that it contacted a number of Ministers who said that selling Aer Lingus to IAG would make commercial sense and was in the long-term interest of the airline. This is an example of everything that is wrong with this Government and the motion before us. The Government should not see its role as fighting for the commercial interests of a company instead of the best interests of the Irish people. IAG is a multinational corporation which is seeking to expand its commercial interests. If it succeeds in this takeover bid with the assistance of the Government, it will be at the cost of the Irish people.

The sale of Aer Lingus to IAG would make it a very small part of a huge multinational corporation for which shareholder value, or profit in other words, is the dominant concern. IAG has no regard for the best interest of the Irish people, whether they are customers and employees of Aer Lingus or those whose livelihoods depend on business and tourism. The winners in this takeover will be the executive and senior members of Aer Lingus management, some of whom will receive multi-million euro payouts, IAG shareholders and Ryanair. The Government is attempting to steamroll its short-sighted decision through the House because it is deaf to the protests of workers, unions and the general public, who are the real shareholders. If this sale proceeds, the interest of IAG shareholders will always trump the needs of the Irish economy, the travelling public and Aer Lingus workers. The State should retain a majority shareholding, at the least, in Aer Lingus because it is a strategically important company for this island economy. The idea that State ownership is bad and private good has been proven false.

Since it was established in 1936, Aer Lingus has developed into one of the best performing state-owned airlines in Europe, with a powerful international brand, key routes and great staff. It provides a more reliable service than low cost airlines and is a profit making player on transatlantic routes. It has cash reserves of more than €1 billion and its Heathrow slots have been valued by Deloitte at more than €500 million. It is also an adept regional independent player in a world dominated by big airlines. In 2014 it carried 10 million passengers on its 50 aircraft and enjoyed a turnover of €1.6 billion. It is no wonder that IAG shareholders want to get their hands on it. Currently Aer Lingus employs approximately 3,900 people, not counting the many thousands employed in downstream industries. IMPACT estimates that a takeover by IAG could put up to 1,200 jobs at risk because the new parent company would be likely to seek substantial cuts to justify its investment. One of the primary cost cutting measures will come from a reduction in staff numbers. Following its takeover by IAG, Iberia announced 4,500 job losses. A secret report prepared for Aer Lingus by Nyras suggests potentially significant job losses, including cuts of 20% to ground handling staff, 40% to catering staff, 15% to maintenance staff and 25% to heavy maintenance staff.

Far from selling its shareholding in Aer Lingus, the Government should make the strategic decision to purchase a majority shareholding. It will be able to do so when Ryanair divests itself of its shareholding. This would allow Ireland to retain a major indigenous company and continue to expand its air bridge with the rest of the world. The ideological hostility to state ownership is outdated and wrong. The tentative assurances given by Aer Lingus and IAG are not sufficient to address workers' concerns about compulsory redundancies and the outsourcing of jobs. Aer Lingus workers, who have made a huge contribution to the company's success, will rightly ask why a legal guarantee be offered in some areas but not in regard to their conditions of employment, including compulsory redundancies and outsourcing of jobs. This sale and the offer by IAG must be seen for what it is, a sell-out and a money-grab at the expense of the Irish people and the workers of Aer Lingus. It is part of a continuing campaign by this Government and its predecessors to sell off the hard won assets of this country under the heading of liberalisation. The Government has capitulated to the troika's demand to sell every State asset that can be sold.

Deputy Costello's contribution was the height of cynicism. It is worth noting the position of the two major trade unions in Aer Lingus. SIPTU has stated it will vigorously oppose the Government's plan to sell off its 25% shareholding in Aer Lingus due to the failure of the company to provide a commitment to workers that it will not impose compulsory redundancies or outsource jobs. IMPACT has stated that the proposed takeover of Aer Lingus is bad for jobs, workers and economic development. Staff at the company have genuine concerns about compulsory redundancies if the deal is completed, as well as further erosion of terms and conditions of employment due to the inevitable restructuring of the company. The commitments that the magnificent seven Labour Party Deputies gave to the deferred pensioners and workers have come to nothing. I oppose the motion.

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