Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank all Deputies for their contributions. We have had a very long and important debate on this very important decision and I have been here for nearly all of it. I am aware of the importance of this decision like everybody else in this Chamber. This sentiment is not confined to the Opposition benches but is something every member of this Government understands. We appreciate the very long history of Aer Lingus and its deep importance to our country. For 70 of the nearly 80 years of its existence, it was a State-owned organisation. It was privatised nine years ago. Across that entire period, it has had a very special place in the hearts of the Irish people. The Government has been very conscious of this at every stage. It has been very conscious of the public interest in that company and the decision. It is the reason why the Government has taken such care in reaching a decision on the future of its shareholding in the airline. We are doing so against the background of extraordinary tourism numbers announced yesterday. There were almost 1.8 million overseas visits to our shores in the February to April period, an increase of 13.5%, which highlights the importance of connectivity and access to our country and shows how our economy can benefit from tourism. Against the backdrop of these figures that this Government has been instrumental in delivering, we do not need any lectures from that side of the House on the importance of access.

We are also aware of the degree of change that has taken place in the international aviation market. It has changed immeasurably since 1936 with the most rapid changes occurring over the past 30 years. For its first 70 years as a State-owned company, Aer Lingus served the country very well. As a minority State-owned company, it has performed even better in a highly competitive and volatile market. The Government has now decided to support IAG's offer as we are absolutely clear that this provides the best opportunity for Aer Lingus to continue to grow and prosper, serving the country as part of a larger privately owned airline group. Like any business, Aer Lingus has had to change with the times and, likewise, Government policy relating to ownership of our stake in the airline is responding to changing circumstances.

At the heart of this debate and our decision is whether the State should continue to own a significant minority shareholding in an airline. This factor has been touched on by some Deputies. As I have pointed out already, the European airline industry remains relatively fragmented compared to the US. Many of the European legacy carriers have been forced to implement significant restructuring plans in recent years, have been taken over or have gone out of business. This has driven consolidation among European airlines with many formerly state-owned airlines either becoming part of larger groups or having failed. They no longer exist.

The Government and I do not want to leave it to chance that there will be a forced decision in more difficult circumstances at some point in the future. The huge improvements in choice of routes, price and service levels are largely attributable to the opening up of the aviation market to real competition. Tourists, business people, friends and relatives can now fly in and out of more Irish airports to more destinations than could ever have been imagined 30 years ago. Deputy McGinley made the point earlier about the difference in price between now and when he took his first flight on an Aer Lingus plane over 30 years ago. The travelling public and the economy as a whole have benefitted greatly from the very good competition and connectivity provided over recent decades. This Government's aviation policy is firmly aimed at ensuring this situation is maintained into the future. A key aspect of the IAG offer is that upon completion, the two largest Irish airlines will continue to operate as strong operators and serve vital routes for Ireland and for the Irish market.

As has been demonstrated clearly over the last two days, the Government's decision to support the IAG offer has only been taken after very careful consideration and having secured guarantees from IAG. I want to emphasise the main reasons for this decision to accept this deal. The first is jobs. This will create employment. It is envisaged that a net total of 635 jobs will be created in Aer Lingus in Ireland by 2020, with 150 of these jobs coming into existence and on stream by the end of 2016. It strengthens the competitive position of Aer Lingus in an extraordinarily volatile and demanding industry. It reduces risk to the company and provides it with an opportunity to plug into more routes, to serve more locations and to launch new services, two of which we will see next year. It gives greater certainty around our connectivity to Heathrow, a point to which I will return. It strengthens the guarantees we have around the disposal of Heathrow slots and it provides guarantees for seven years on the usage of slots that do not exist at the moment. It promotes Ireland's wider connectivity and can and will bring growth to our airports. It is anticipated that benefits will accrue on short and long haul routes at Dublin, Cork, Shannon and Knock airports. Finally, it will protect the iconic Aer Lingus brand, which is very important to this Government and to the people and it will keep the head office of Aer Lingus in Dublin.

I will now respond to some of the points that were made during the debate. Politics is about leadership. It is about doing what we believe is right even if sometimes that is not popular. Over the last two days the leadership qualities of other parties and other Members have been brought into focus. I am particularly struck by the Members from both Government parties - from Fine Gael and the Labour Party - who have indicated that they will support this motion because they believe it is in the best interests of the State, Aer Lingus and the current and future workers at the company.

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