Brendan Daly (Fianna Fail)

I agree with much of Senator Finucane's contribution. I acknowledge the contribution Aer Lingus has made to the development of the economy nationally and regionally, especially in Shannon and Cork. The company emerged from a difficult period following 11 September when most airlines were in crisis. It was no different for Aer Lingus during this period of instability in international politics, uncertainty in many economies and intense competition. The company's emergence from this traumatic period is a compliment to the board of management, chief executive, Willie Walsh and Tom McInerney and others at Shannon Airport for their work in stabilising the performance and financial health of the company. Aer Lingus lost €52 million in 2001 but, within a year, that was transformed into a profit of €25 million. That was a dramatic turnaround in a short period and it was due in the main to the company's dedicated staff who made sacrifices and adapted to change so that the airline could survive in the national and local interests.

During that time, 2,000 people were displaced and, unfortunately, more redundancies have been threatened. Voluntary redundancies have been sought at Shannon Airport. I agree with Senator Finucane that there is deep anxiety and concern among the workers there at the recent job losses, especially as this legislation passes through the Oireachtas. There is a deep suspicion in Shannon and throughout the mid-west that the management of Aer Lingus is not fully committed to the development of the airport. That is not my view and I received an assurance from the general manager and others in Aer Lingus that this is not the case but, whether it is, the staff at the airport, together with the local population, feel the company is more concerned about opening new routes, expanding the business in Dublin and the financial survival of the company than the position of Shannon Airport. This feeling cannot be dispelled easily but its needs to be remedied and rectified soon.

At a time the Government is engaged in a decentralisation programme, Aer Lingus is centralising its services, as Senator Finucane said. This is contrary to Government policy. Young people working for the company are being offered the option of moving to Dublin to continue their employment. This is tantamount to saying there are no jobs for them in the company but that is not the case.

I refer to the share option scheme. The share option arrangement should be offered to those who are considering voluntary redundancy at Shannon Airport. Even though I am critical of these redundancies, it is important that the stability, development and long-term survival of the airline should be ensured. If there must be redundancies so that the company remains viable, we are prepared to live with them in the hope that when it is financially viable again, it will be possible to restore these jobs quickly.

I have not read Senator O'Toole's amendment but I agree with its spirit. Flexibility is provided in the proposed arrangement. Many of the people who recently left the airline are part of the share option scheme introduced in 1996 and they should be accommodated. The new arrangements should apply to them. Senator O'Toole stated the electricity supply Bill provided a mechanism to deal with such a scenario and I urge the Minister of State to examine whether such a mechanism could be provided in this legislation.

The management of Aer Lingus succeeded, in its efforts to restructure the airline, to reduce the cost base by 22%. The workers at Shannon Airport are concerned by the new arrangements for transatlantic routes during the upcoming season. Senator Dooley and I met employees last Friday and they were distraught at the news of redundancies and transfers from Shannon to Dublin. They put forward a proposition whereby Aer Lingus could base flight EI111, which currently operates between Dublin, Shannon and New York, at Shannon Airport and put the passengers who travel between Dublin and Shannon on the Chicago route. By basing flight EI111 in Shannon Airport, many of the voluntary redundancies would not be necessary and many of the employees who are being offered transfers to Dublin Airport could remain at Shannon.

The Shannon-Dublin transfer proposal has been deferred as part of the discussions in the Labour Court. The employees' proposal should be examined again in the context of the loyalty the staff has shown to the airline in accepting voluntary and compulsory redundancies and significant inconvenience.

It would be a small measure of recognition that the board and management of Aer Lingus in Dublin are concerned about the future of Shannon. We believe the future of Shannon is linked to the future of Aer Lingus. Shannon is as important to Aer Lingus as Aer Lingus is to Shannon. To centralise the company entirely in Dublin would be detrimental to the airline, which would not be able to cater for the numbers involved.

Aer Lingus should consolidate its business in the United States and look at the prospect of establishing a central base in Europe for the development of business there. This would copperfasten the future security of the airline.

The Bill will be wholeheartedly welcomed by the staff of Aer Lingus, provided we make the small adjustments necessary to underpin the confidence of the company's employees.