Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

Anyone who understood the sensitivities of a deal like this would understand that when one has Stock Exchange rules and is looking at off-loading a minority shareholding in a public company, there are certain things one can and cannot say. What has happened here is that the Government has taken an ultra-cautious approach. It rejected the offer initially and has gone back and taken its time to negotiate and use all of the leverage it has in terms of the share it still owns to maximise the benefit of any deal that is on the table for the country. That is what the Minister has done and he has done a great job doing it.

Let me say what this means for people. It means increased employment. It is a growth story for Aer Lingus, which without this deal would not happen. Without this deal Aer Lingus would be focused on survival in the future and not growth, expansion, investment and improved connectivity. It would not be focused on reconnection with the One World alliance and all the other things that will now be possible, as it links up with an organisation that has 466 aircraft, serves 248 destinations and carries nearly 80 million passengers a year. Aer Lingus is now plugged into that organisation and this will ensure it has a long-term future operating out of Ireland and Irish airports. It has already said that by 2020 it will have created a net 635 new jobs and next year there will be a net increase of 150 jobs.

Key issues surrounding connectivity and protecting Heathrow slots, in particular relating to Shannon and Cork airports, have been raised by many people in this House. Under this deal we will have stronger protection, from the creation of a "B" share, than what we have at the moment with a minority 25.1% share. The Minister for Transport, Tourism and Sport has negotiated this protection by using imagination and by being determined that the Government would not support this deal unless it had cast iron guarantees on the protection of slot disposal and a seven year guarantee on slot use. These guarantees have been achieved. That is a much more comprehensive protection measure for Heathrow slots than is currently available. That is the fact of the matter, as opposed to the emotion others are seeking to invoke.

This deal has been negotiated tediously over a long period of time to ensure key issues Members of this House have been raising on regional connectivity, in particular, connectivity out of Shannon, Cork and Knock airports, are addressed. Regional connectivity has not only been protected but has been enhanced from its current position. That is why the Chamber of Commerce in Cork is welcoming the deal. The business association welcomes the deal. For the first time in quite some time, people are talking about Cork airport with optimism. They are talking about the commitments Aer Lingus is making in what is a growth story, using regional hubs in Europe, such as Paris and Amsterdam, and developing new linkages to Germany, Spain and elsewhere. That is now possible because of the connection with a much larger, internationally connected, IAG group.

The "B" share is not simply about the slots. The speaker before me also mentioned this. When they look up, people are filled with pride when they see an Irish brand in the air. When coming home from the United States or other parts of Europe, they want to see a shamrock on the wing or the tail of an aircraft. The branding is protected. The Minister for Finance effectively has a veto over any decision to change the branding or name of Aer Lingus or to move its headquarters out of Ireland. We have guarantees on keeping an airline in Ireland, which is branded as an Irish airline. These guarantees will keep the Aer Lingus name strong and growing in the future. At the same time, the airline and its name and brand are plugged into an international group that can make it much stronger. That is the deal and it is a good one.

In terms of its strategic future within IAG, the Minister had to make a decision, and the Government had to confirm it, on whether this was the best potential partner in terms of the growth of Aer Lingus in the future. What other potential offers might be out there? Should we accept this offer or should we wait for someone else to come along? If one looks at the response of the markets and shareholders in Aer Lingus, everyone is comfortable that the fit with IAG is the right fit for Aer Lingus. In terms of the protection and growth of brands and airlines such as BA and Iberia, the same opportunities for growth and expansion are now available to Aer Lingus. This decision will create jobs, increase connectivity out of Shannon and Cork airports and protect and grow potential routes out of Knock Airport, as well as Dublin Airport. It will also result in eight new planes flying under the Aer Lingus banner and will provide certainty around the Heathrow slots.

However, another question needs to be asked. What will happen to the money and the proceeds from the sale? Where will it go? Will it be used strategically on connectivity for Ireland, which is Aer Lingus's primary concern? As a Government, we have decided that the €335 million which will be raised from this sale will be ring-fenced. It will be given to the Irish Strategic Investment Fund to manage. It will be targeted specifically at connectivity projects in airports and ports and broadband connectivity. It will connect Ireland and improve our international connectivity, as an island, which is exactly how this fund should be used. This fund will not be used to pay off national debt or something like that. This has been a strategic share in Aer Lingus, since it was privatised. We are now going to use the proceeds as a strategic fund to improve and protect international connectivity in the future. This is in addition to the other strategic decision which will strengthen and allow Aer Lingus to grow and will provide vital connectivity services, both regionally and out of Dublin, in the future. I strongly welcome and support the decision.

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