Seanad debates
Wednesday, 28 November 2012
Transport (Córas Iompair Éireann and Subsidiary Companies Borrowings) Bill 2012: Committee and Remaining Stages
11:35 am
Feargal Quinn (Independent) | Oireachtas source
I welcome the Minister of State. I know he has listened very carefully to Senator Barrett's comments in the past and will do so on this occasion as well. I come from a business background where we did not understand the distortion of the market through subsidies to competitors. We can consider the example of air traffic. I have often said how we remember what used to happen with the Dublin-London route. There were two airlines, both owned by governments and subsidised. They were not run in the interests of the customer but rather the interests of the owners. The United Kingdom owned British Airways and Aer Lingus was owned by our Government. I am pleased to say that whether we were forced or encouraged by Europe to bring it about, we grabbed hold of the issue and put competition in the sector.
We can see how dramatic change has occurred, not just with Ryanair and other airlines entering the market but within the airlines that operated on the route, such as Aer Lingus, because they had to adjust to the market in the interests of consumers. It seems we have not come to that point in other transport areas, where competition will solve problems. Senator Barrett has outlined how the market is distorted, when a subsidy is used for the loss-making operation of a State company. The company is not being run in the interests of the consumer or its customers but rather the interest of its owners, the State and the taxpayer. Senator Barrett has made a strong case and it should not be ignored.
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