Michael McNamara (Clare, Labour) | Oireachtas source

I am thankful for the opportunity to speak to this motion on the disposal of the shares in Aer Lingus, about which so many questions remain. In that context I question the timing of this motion and the haste with which it is being moved. I understand that market takeovers require movement but, ultimately, the permission of the House is required for the Minister to dispose of the shares. We are a long way off that yet.

We are at least six months if not a year off that. I do not know why, therefore, we are giving a carte blancheat this stage. Nevertheless, I welcome the contribution the Minister for Finance, Deputy Michael Noonan, made to yesterday's debate in which he acknowledged the importance of connectivity to and from the island of Ireland. He said it was crucial for economic growth across the country, not just in Dublin. I recall the recent announcement by the Minister of State, Deputy Gerard Nash, of jobs in Shannon. One of the key factors he attributed to being able attract American companies to Shannon was its connectivity to the USA and Heathrow. Shannon Airport was established to be the driver of growth in the mid-west and it had achieved that up to the time Fianna Fáil in its wisdom decided to abandon it in favour of Dublin. Nevertheless, for a long period in its history, it was the driver of growth in the mid-west and it is again, largely because of decisions this Government has taken and which I have supported.

The Minister for Finance said that long-term investment decisions such as foreign direct investment into Ireland are much easier to make in an environment of certainty. He said the level of certainty provided by this transaction as part of our broader efforts is supportive of economic growth. I welcome his acknowledgement of the importance of connectivity and certainty in that regard. The Minister went on to spend some time explaining how these commitments regarding connectivity were to be secured. They were to be secured by providing certain rights to the Minister for Finance and his successors through the retention of one share in Aer Lingus, which will be designated a "B" share. The Minister said the benefit of the commitments were that the rights attaching to the "B" share will be enshrined in the articles of Aer Lingus to allow the holder of the share to object to any proposals deemed contrary to the national interest such as the disposal of Aer Lingus's Heathrow slots or a proposed cessation of the operation of Aer Lingus's Heathrow slots on certain Irish routes for five years and up to seven in the event that airports do not unduly raise their prices.

While this is welcome, those who have been around the House a lot longer than me will recall that when Greencore was privatised in 1991 a similar golden or "B" share scenario was put in place to give the Government a veto over the sale of the sugar division where that was deemed not to be in the national interest. A few years later, doubts were cast on that golden share agreement in a ruling of the European Court of Justice in 2003 to the effect that Britain and Spain broke EU law by holding golden shares allowing them to maintain a degree of control over privatised companies. The EU's highest court ruled that controls on the privatised British Airports Authority, which owned Heathrow, and five Spanish companies breached the EU treaty by restricting the free movement of capital. At the time, The Irish Timeswrote, "This ruling could also have interesting implications for the Government if it decides to privatise other State assets such as Aer Lingus or Aer Rianta". As such, I ask the Minister for Transport, Tourism and Sport if the slots at Heathrow are capital assets.

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