Clare Daly (Dublin North, United Left)
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8. To ask the Minister for Public Expenditure and Reform the role of his Department in the potential sale of the State's shareholding in Aer Lingus to IAG, the International Airlines Group. [5608/15]

Clare Daly (Dublin North, United Left)
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There is no doubt that this is an absolute twilight zone because the Minister's protestations bear no link to the reality experienced by the public.

My question concerns the proposed takeover of Aer Lingus by IAG. Thousands of workers in north Dublin, Cork and Shannon are very worried about this proposition. According to media reports, the Labour Party is upset and worried about this also. There have been a few rumblings but nobody will take comfort from that, given that they seem to be capable of dealing with their rumblings and upset, and selling their consciences. Can the Minister tell us, and particularly the 5,000 Aer Lingus employees, what his Department's role is in the impending sale and takeover of Aer Lingus?

Brendan Howlin (Wexford, Labour)
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The Government's shareholding in Aer Lingus was one of the assets included in the State assets disposal programme approved by Government in 2012, for which I am responsible.  Accordingly, my Department is represented on the interdepartmental steering group which is currently examining the issues arising from the recent approaches to Aer Lingus by IAG.  

The steering group is chaired by the Department of Transport, Tourism and Sport, as the Department with policy responsibility for the sector, and also includes the Department of Finance, whose Minister holds the Government's shareholding in Aer Lingus for specific reasons, and NewERA. They are making a full evaluation of the proposals and those proposals will come to Government in due course.

Clare Daly (Dublin North, United Left)
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I tabled a question to the Minister for Finance who, as the Minister, Deputy Howlin, correctly said, is the shareholder, but he would not even answer that question. He transferred it from the Department back to the Minister for Transport, Tourism and Sport. What we have in the answer to this question is the idea of sharing responsibility or off-loading it, depending on what way one looks at it.

The workers involved, and, indeed, many business and tourist interests, may ask what interest IAG could possibly have for the Irish economy and workers in return for a paltry €300 million. In a company that is already returning new dividends annually, that amount would be sucked up pretty quickly. IAG has nothing positive to offer Aer Lingus. Its involvement is only concerned with expanding its own business interests. Despite any assurances on the Heathrow slots, they would not be worth the paper they are written on.

Will the Minister comment on the fact that when IAG took over Iberia, 5,000 people lost their jobs? A pro ratafigure for Aer Lingus would be in the region of 1,200 jobs. Undoubtedly, senior executive decision-making would transfer to London with perhaps a small presence here in Dublin. Can the Minister comment on the economic impact of the loss of those jobs on the Exchequer?

Brendan Howlin (Wexford, Labour)
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The Irish Takeover Panel has deemed that Aer Lingus is now in an offer period. The panel's rules in regard to communications apply to all parties during this offer period. All parties, including the Government as a shareholder, must apply the highest standards of care to any statements we make on the matter. Specifically, shareholders must take care in any of their communications to avoid revealing any information that could potentially impact, either positively or negatively, on the Aer Lingus share price. We are a minority shareholder but other shareholders have rights. The Minister for Transport, Tourism and Sport has clearly said that we are a minority shareholder, and there are other shareholders.

IAG is entitled to make a bid. That bid is being evaluated and we will make a determination on the Government's shareholding in the best interests of the workers, the State, connectivity and all the matters that have been laid out in such detail by the Minister for Transport, Tourism and Sport. The Deputy can be assured that the most careful consideration will be made of these matters before any decision is brought to Government.

Clare Daly (Dublin North, United Left)
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Careful assurances of information that we are not party to, and opinions that we do not get to see, are becoming the mantra of this Government. It is just not good enough. If the Minister is not prepared to give us information on some of these things, maybe he could comment on the outstanding pension problem. There seems to be a belief that the IASS pension scheme issue has been resolved. The reality, however, is that last month, moneys were taken out of pensioners' pockets equating to about €500,000 per month from the local economy. People are not signing the waiver forms and legal action is pending.

While I appreciate the Minister has said he cannot give us any information that might impact upon the share price, although the share price is obviously being impacted upon already, and has been over the last period, perhaps he might comment on whether the outstanding pension debacle has been factored into the considerations or is there a naive belief that this issue has been resolved?

Brendan Howlin (Wexford, Labour)
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I am always amused by the Deputy's cavalier attitude to the law. I have indicated what the rules are and we are obliged to adhere to them. It is not a matter, like her views on the Constitution, that we can accept or reject it according to the vagaries of the day and the political advantage to be made. Government does not operate like that.

As regards the share price, the Deputy can be sure that nothing I have said will impact on it because I will confine myself to the strictures of the rules and the laws that exist.

As regards the second question on pension matters, that is a matter for which I have no responsibility.