Timmy Dooley (Clare, Fianna Fail)
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1. To ask the Minister for Transport, Tourism and Sport the actions he will take to secure the pensions of members of the Irish airlines superannuation scheme; and if he will make a statement on the matter. [27418/14]

Timmy Dooley (Clare, Fianna Fail)
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In light of the publication of a report of the expert panel established by the Government to try to find a resolution to the aviation dispute, will the Minister set out the next steps in the process? How will the expert panel's report secure the pension entitlements of the various categories of pensioners in the Irish airlines superannuation scheme?

Leo Varadkar (Dublin West, Fine Gael)
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Resolution of the funding difficulties in the Irish airlines superannuation scheme, where there is a deficit of more than €760 million, is primarily a matter for the trustees, the companies participating in the scheme, the scheme's members and the Pensions Board. The deficit in the scheme has arisen over many years as the companies and the members did not put sufficient funds into it to match the benefits that were expected or promised. 

The problems with the scheme have long been recognised and there now exists an opportunity to resolve them at long last.  An expert panel was established by my Department, the Department of Jobs, Enterprise and Innovation, IBEC and ICTU to find a solution to the industrial relations issues relating to the scheme. The panel presented its final report on 16 June and it has been published on my Department's website. I welcome the report and urge all parties to give it careful consideration. Its recommendations can be used by the parties as the basis for constructive engagement and to achieve a resolution in the best interests of all. While some of the decisions that will be required will be challenging, all parties should bear in mind the view of the expert panel that its recommendations represent the best possible outcome that can be achieved.

I have included provisions in the Shannon Group Bill 2014 to facilitate implementation of whatever proposals emerged from the recent discussions among the parties.  There has been some concern about certain provisions in section 34 of the Bill, which was originally drafted to provide a fallback position.  However, as I informed the House yesterday, on the basis of the expert panel's report and the views expressed in both Houses, I will table an amendment on Committee Stage to delete these fallback provisions.  I urge all the parties involved to seize this opportunity to bring this issue to a final and fair conclusion.

As to the next steps in the process, the expert panel report will be discussed by the boards of Aer Lingus and the Dublin Airport Authority and the relevant trade unions. If the parties are open to its findings, they will subsequently engage with each other on the basis that the report offers a solution with which they will agree. Any agreement will then be the subject of ballots.

Timmy Dooley (Clare, Fianna Fail)
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Is it correct to conclude from the Minister's response that he believes the expert panel's report provides the best framework for finding a resolution to the dispute? If so, has the Minister commenced a process of engagement with the directors of the relevant boards, given that he appoints all the directors of the board of the Dublin Airport Authority and a minority of directors of the board of Aer Lingus? Has he met directors of the boards to communicate his desire to have the recommendations of the expert group implemented and to encourage both companies to engage?

The Minister stated that the resolution of the current difficulties is, in the first instance, a matter for the trustees and companies involved. He has a strong hand to play in this dispute, however, given that the State is the majority shareholder in the Dublin Airport Authority and has a significant shareholding in Aer Lingus. I encourage him to use this position to try to achieve a resolution as quickly as possible.

This is a difficult issue for workers, retirees and those in a deferred position. It is a matter of particular concern for members of the public and the tourism industry that a continuous threat of strike action hangs over them as a result of the legacy issues involved in the superannuation scheme. We see the damage being done in France as a result of strike action by certain aviation workers. The sooner the issue at Dublin Airport is resolved, the better it will be for all concerned.

Leo Varadkar (Dublin West, Fine Gael)
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The expert panel's report is the best chance we have to resolve this long-standing problem. I am concerned that it may be the last chance, because if the Pensions Authority winds up the pension scheme, current pensioners may be protected but the deferred pensioners and active members of the scheme may lose almost everything, which would be a disaster. We have an opportunity to grasp the nettle and use the expert panel report as the basis for a solution. This would be good for current and former staff because it would finally give them certainty about their pensions. Individual staff will want to know exactly how much they will receive, and this will take time to work out, but in the vast majority of cases, if not all cases, the sum involved will be more than half their final salary, which is similar to or better than the position of public servants.

A solution would also be good for the companies involved as it would provide security and allow their share prices to rise. Moreover, it would be good for the economy, taxpayers and the tourism industry because it would provide greater security against the threat of further industrial relations disputes.

I have been in touch with the chairman of Aer Lingus and at least one of the Government-appointed directors of the company's board. The Government appointees must put the fiduciary interests of the company first.

The shareholder vote in Aer Lingus will be difficult and a specific outcome cannot be guaranteed. Some people may believe the only ballot will be of staff, but that is not the case. Aer Lingus shareholders will also be balloted and it will be difficult to secure their agreement on any proposed solution.

While I have not yet had an opportunity to discuss the expert panel's report with the board of the Dublin Airport Authority, I will do so.

Timmy Dooley (Clare, Fianna Fail)
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The Minister has identified a potential problem of which all of us are aware. Has he had any discussions with the other shareholders of Aer Lingus and the Dublin Airport Authority with a view to trying to find a resolution? I have in mind one of the other large shareholders in Aer Lingus, namely, Ryanair.

Has the Minister had an opportunity to discuss this particular matter with the chief executive or any of the directors?

Leo Varadkar (Dublin West, Fine Gael)
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I have discussed some matters with Ryanair in the past week or two but I have not discussed this issue. It has made its position very clear. That may change but its position as of now is that it will oppose it. It thinks that the contribution being asked of the company and, indirectly, of the shareholders is too great. The Deputy will be aware that a vote took place some weeks ago on the CEO's remuneration package which was voted through, predominantly with the help of Ryanair. The Government was on the other side of that vote with notice to the staff, so it is something that needs to be taken account of in this dispute. Aer Lingus takes the view and believes it has legal advice to the effect that it is under no obligation to close the deficit or even necessarily contribute to it. That will be a difficult vote. It is not the only hump we need to get over but the role I play as Minister and shareholder is to try to assist all the different parties to come to a solution. The difficulty is there are many different parties involved in this dispute and they all think they are the only ones but they are not. It will require agreement across the board to get this through.