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

An agreed solution was implemented at the start of this year to address the funding difficulties in the Irish airlines (general employees) superannuation scheme, IASS. This agreed solution is a matter for the trustee, the companies participating in the scheme and the scheme members and the Pensions Authority. Under the agreed solution, the total contribution proposed by the IASS employers towards resolving the IASS difficulties now amounts to over €260 million. This includes adding a further €20 million to the €40 million already being made available for deferred members, bringing the full amount for this group to €60 million. The trustee has confirmed these measures are in the overall best interest of the members of the IASS as a whole. The solution will continue to be implemented in compliance with national and EU law irrespective of the ownership of Aer Lingus. I am very conscious that the agreed solution has a significant impact on many members of the scheme, but as I have said in the House, these risks would have arisen for all members, the companies involved and the wider economy if this solution had not been implemented.

Any proceeds from the sale of the State's minority shareholding in Aer Lingus will be paid into the Exchequer, and the Government has decided that such proceeds should be used to establish a new connectivity fund as a sub-portfolio of the Ireland Strategic Investment Fund. Under EUROSTAT rules, the proceeds arising from the sale of the State's shares in Aer Lingus represent the sale of a financial asset and will have no beneficial impact on Ireland's general Government balance, GGB. Accordingly, the money received will not provide any capacity for additional Government expenditure on a GGB-neutral basis. It is for this reason the proceeds will be allocated to this special fund, which will operate on a commercial basis.

Additional information not given on the floor of the House

Therefore, they will not constitute Government expenditure but will facilitate the re-use of the proceeds for productive purposes within the economy, on a GGB-neutral basis. For this reason, the moneys generated by the sale cannot be used for the reasons proposed by the Deputy.

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