Clare Daly (Dublin North, United Left)
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11. To ask the Minister for Public Expenditure and Reform in view of the fact that he is responsible for the sale of State assets, if he will provide an update on the attitude adopted by his Department in the interdepartmental steering group in response to the bid by International Airlines Group, IAG, for Aer Lingus. [11688/15]

Clare Daly (Dublin North, United Left)
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This question is fairly straightforward. It seeks an update on the discussions in the interdepartmental group that is considering the potential IAG takeover of Aer Lingus. This issue has dominated the minds of the thousands of people who work for Aer Lingus, as well as the 15,000 members of the Irish airlines superannuation scheme, IASS, the overwhelming majority of whom are former Aer Lingus workers and who are looking at this bid with a great degree of fear. They would like to know whether it is possible to learn what is going on with the bid at present.

Brendan Howlin (Wexford, Labour)
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As the Deputy will be aware, the programme of State asset disposals agreed by the Government in February 2012 included, inter alia, the disposal of the State's remaining shareholding in Aer Lingus. However, I made it clear at that time that a disposal of the Aer Lingus shareholding could only take place when market conditions were favourable and in circumstances that accorded with Government transport policy, as well as at an acceptable price for the taxpayer and the Government. This has continued to be the Government's consistent position since 2012. The Deputy also will be aware that following the announcement of IAG's approaches to Aer Lingus, the latter is now in an offer period under the Irish takeover rules. These rules impose a range of specific obligations on Ministers, as shareholders in Aer Lingus, including obligations of confidentiality and obligations to ensure statements made in connection with the offer are accurate and not misleading. These obligations are particularly acute for the Government given the pivotal role the State has regarding any proposed bid for Aer Lingus.

The Government has made clear, through statements made by the Minister for Transport, Tourism and Sport, that the key issues of concern in the context of any potential disposal are connectivity to and from Ireland, including direct transatlantic services and connectivity via Heathrow, competition in the air transport market, jobs in the Irish aviation sector and the maintenance of the Aer Lingus brand. In that context, the Minister for Transport, Tourism and Sport announced last month that the information and commitments that had been provided by IAG on these issues did not provide a basis on which the Government could give an irrevocable commitment to accept an offer to dispose of its shares, should one be made by IAG. The interdepartmental steering group, of which my Department is a member, was mandated to continue discussions with IAG with a view to seeking an improved proposal with greater clarity and certainty regarding the implications of a potential takeover on the key issues I have outlined above.

Clare Daly (Dublin North, United Left)
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There is not much clarity in the Minister's reply. I appreciate the stage at which the bid is in but that said, this will not provide much comfort for those who are particularly concerned about it. It is regrettable that this proposition was included in the programme for Government at all. Many workers are shocked that the Labour Party did not use its position to ensure that would not happen. However, this is an opportunity to put on the public record that the stated objectives of connectivity, of securing jobs at the airline in particular and of the other issues outlined cannot be achieved if IAG takes over Aer Lingus.

The best protection that can be offered is that the Government would maintain its shareholding. This is a company that currently employs just short of 3,000 people. When IAG involves itself in amalgamations of this nature, this inevitably means job losses and IAG is on record as stating this definitely will happen and promises of future jobs are no guarantees. The Minister should give assurance to Members that the idea of so-called tangible legally-binding agreements on job conditions and connectivity hold no way whatsoever when one considers the previous guarantees on jobs that were given to airline staff, not least in respect of Aer Lingus and TEAM Aer Lingus.

We know what has been going on legally for 21 years. I hope the Minister can assure us that he will be very sceptical about any legally-binding guarantees.

Brendan Howlin (Wexford, Labour)
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The State owns a minority of the shares in Aer Lingus. I am afraid the decision concerning a majority of the shares being disposed of by the State was made many years ago, so we do not control the bulk of the shares. We have to consider that another sizeable shareholding may come onto the market shortly, depending on the outcome of legal proceedings in the United Kingdom. We must have regard to ensuring that there is a sustainable future for Aer Lingus. As I said, however, we have no control over 75% of the shares.

To deal with the Deputy's specific point on jobs, I have listed the priorities the Government has indicated will be critical to meet in any decision we make. Jobs will absolutely be a part of that.

Clare Daly (Dublin North, United Left)
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I can understand the Government's position, but a slice of cake is better than no bread at all. While I would like the airline to be 100% in State ownership, 25% is certainly better than nothing in terms of securing the objectives which the Government has outlined. The Minister has alluded to the other significant shareholder, but their silence against the backdrop of this bid is of particular concern. There is a belief out there that there is possibly a tacit agreement between Ryanair and IAG that the proposed move would be good for both airlines. That would undoubtedly cause concern to Aer Lingus workers.

I ask the Minister to address the point about entering legally-binding agreements. The history of such agreements in the airline is not good. Litigation around the TEAM Aer Lingus letters of comfort is still ongoing after 21 years. Has the interdepartmental group sought the supposed guarantees? History has shown us that they do not stack up at the end of the day. What is the Minister's approach to that in the discussions?

Brendan Howlin (Wexford, Labour)
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I will reiterate what I said previously, which is that we have a minority shareholding. The Deputy is overemphasising the influence of a 25% shareholding, if she thinks that is a controlling influence on anything; it is not. That decision was made some years ago. We have to think of the strategic interests of the country, including connectivity, business, tourism and the future of the Aer Lingus brand, as well as jobs in Aer Lingus and our airports. That is the strategic decision that will fall to be made by the Government, assuming that IAG continues in the negotiations and improves on the situation which, as the Minister for Transport, Tourism and Sport has indicated, was unsatisfactory some weeks ago.

Michael Kitt (Galway East, Fianna Fail)
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The next question is in the name of Deputy Ruth Coppinger but, as she is not present, we will proceed to Question No. 13 from Deputy Seán Kyne.