Seanad debates

Wednesday, 10 October 2007

4:00 pm

Photo of Dan BoyleDan Boyle (Green Party)

Yesterday I had a conversation with a former director of Aer Lingus who informed me that on becoming a director, he was issued with a manual outlining the responsibilities that a director of Aer Lingus should have. Within that manual there were 34 pages on the area of corporate social responsibility. It could be that that manual needs to be rewritten given the new circumstances in which Aer Lingus finds itself. It is no longer a national carrier; it is a privatised company that operates to a base commercial agenda. I presume the same manual is in use, nonetheless, even for the two new directors being appointed today by the Minister for Transport and the Marine. Not having a copy of that manual or read its contents, I suspect it speaks of corporate social responsibility in its widest sense — responsibility to the workforce of the company, responsibility to its customers, and responsibility to the wider community, especially where the company has its base of operation. On every one of those criteria, it is clear that the new Aer Lingus has failed.

We can argue to our heart's content about the effects of the privatisation of Aer Lingus. That debate was held. My party had a particular viewpoint on it, but it was not necessarily the strict viewpoint of the previous Government. There were other parties — parties in opposition — which agreed exactly with that practice. The fact is that a privatised Aer Lingus now makes its commercial decisions regardless of the consequences for others.

The trend in this decision making even preceded privatisation. I recall having arguments about decisions Aer Lingus made on Cork Airport. The company took on a private competitor in the form of Jetmagic and undermined three routes so that there was no choice out of Cork Airport any more. Aer Lingus made a decision no longer to provide an air route between Cork and Dublin, and that was before privatisation.

We need to face a new reality. We do not have a national carrier and need to refocus the national aviation strategy to take that into account. Having listened earlier to the contribution of Senator Ross, we are very much in the realm of Hobson's choice as regards the future of aviation in this country and the roles companies in the area are prepared to play. It is not a case of Aer Lingus making these particular choices. It is just as much a case that one of the largest shareholders in the privatised Aer Lingus is not a company that has the best interests of the airline at heart. It is not concerned with the maximisation of profit in that company but more with how it can stymie a competitor in the commercial field. It is even possibly considering how it can transfer assets in the event of taking control of the company. On those grounds, Shannon has been very much the victim of a set of circumstances, only part of which relates to the decision to privatise.

Some contributions had regard to how this situation can be solved. It seems unlikely it will be the retention of the routes by Aer Lingus, but it must be the provision of some route by some carrier from Shannon to important hubs. We all must strive to get to that point.

I was particularly taken by the contribution of Senator O'Toole when he referred to the fact that Shannon, of all the international airports in this country, is the easiest to link up to a public transport network. An early decision needs to be made on that. It is technically feasible. In terms of cost implications it is one of the easiest to achieve. The Government is soon to make announcements on the metro north programme and Dublin Airport, but the need for a rail link for Shannon to open up the potential of that region is something my party will be highlighting in the coming years.

The decision to appoint two new directors might seem like an exercise in locking the stable door after the horse has bolted, but retaining the existing slots to ensure they are not sold to competitors will be an important facet of regional policy in the next few years. I am convinced that the Minister outlined during the debate in this House at least a strategy as to how Shannon can be rescued. My party, as a partner in the Government, is prepared to play its part in that regard.

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