Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

2. To ask the Minister for Transport, Tourism and Sport if he will commit to providing a portion of the proceeds from any sale of Aer Lingus to protect the pensions of deferred members of the Irish Airlines (general employees) superannuation scheme who worked for Aer Lingus. [23234/15]

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

This question is on the possible sale of Aer Lingus and the possible use of the money for the deferred members of the pension scheme. As the Minister knows, a huge issue has arisen in this regard. He has made decisions in the past but I plead once again for something to be done to address the injustice which took place.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | 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.

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Once again, this is very disappointing for the deferred members, many of whom have suffered huge losses. When the State airport Bill was brought forward those who paid a heavy price were the deferred members. We all know this. A terrible injustice was done to them whereby some of them lost between 30% and 50% of their pension. This is not right. It is within the gift of the Minister to re-examine this and push the Cabinet to re-examine it. To come in and say the Government has done a deal and put in so much money, and mention the trustee and what was done, is not good enough. There is room if this goes ahead and the Government gets extra money. The Minister mentioned the Ireland Strategic Investment Fund. From a basic point of humanity and the injustice done to these people, something can and should be done.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am fully aware of the hardship caused to people as a result of what happened to the pension fund. The pension fund faced a huge deficit. The one thing on which I am very clear is if I had gone against the wishes of the trustee, the person whose job it is to administer and run the fund, the Deputy would be the first person in the Dáil Chamber to criticise me for doing so.

I am getting very confused about where the Deputy stands on the sale of Aer Lingus. Is he for the disposal taking place or is he against it? He came into the Dáil for a number of weeks saying he was against the sale happening, but now he has come in here stating he wants the proceeds of the sale to be used in a particular way. The rules in place mean if the stake were to be sold we would not able to use any funding for current Government expenditure. It can only be used for commercial purposes.

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It is very clear we are against the sale of Aer Lingus. I do not even know the status of what is going on behind the scenes and to where it has progressed. We have been against it for many reasons including connectivity, jobs and the fact the tourism industry has been doing very well with numbers increasing. We are selling off a going concern. I have addressed this. The Government has voted to sell off Aer Lingus. I am looking at the reality of the fund of whatever money the Government will potentially get. It is all well and good talking about the role of the trustee. This is an issue of a serious injustice. Will the Minister ask his Government colleagues to make an exception and look at the deferred pensioners once again? This is all I am asking, on the basis the Government will get this money. Perhaps the Minister will give us an update on where we are with regard to the Aer Lingus situation. Has there been any further news?

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is good to hear the Deputy acknowledge the success we are having in tourism. He also opposed many of the measures put in place to deliver this success. He opposed the way we needed to fund the lower VAT rate, which is the very measure supporting Irish tourism and supporting hotels, cafes and restaurants in delivering affordable prices to tourists to get them to visit our country. The measures the Deputy opposed now contribute to the success seen in Irish tourism. I take this opportunity to recognise again everybody working in tourism for the great job they do for our country. The Minister of State, Deputy Ring, is at pains to acknowledge this all of the time.

Deputy Ellis stated it is all well and good about the trustee. The trustee is the individual with the legal responsibility for the maintenance of the fund. If I had gone against what the trustee wanted to do to try to bring solvency and stability to the largest pension fund in the country, which had a deficit of hundreds of millions of euro, Deputy Ellis and his colleagues would have been in the Chamber opposing me for doing so. I am aware of the huge difficulty people have faced and I have explained to the House that the accounting rules in place mean it is not possible to use the proceeds of any sale for current expenditure.