Ivana Bacik (Independent) | Oireachtas source

I thank the Leader for arranging the debate at the request of the House. Indeed, I was one of the Senators who looked for the debate. Will all of those who shouted so loudly on the Order of Business now turn up to participate in this debate? My own position, as leader of the Labour Party group, is that I opposed the effective privatisation of Aer Lingus and the sale of the controlling share by Fianna Fáil in 2006 - the 74.9%. It is difficult to listen to the hand-wringing by Fianna Fáil now. I would remind colleagues that the 2004 Aer Lingus Act which set up the privatisation was enacted by Fianna Fáil and the PDs in 2004. In July 2006, the Fianna Fáil Government introduced its motion to the Oireachtas to privatise Aer Lingus and the privatisation plan, which was introduced by the then Minister, Mr. Martin Cullen, allowed for a 25.1% shareholding to be retained. I have listened to Fianna Fáil Members speak of this as if it were some sort of virtue but it is instructive to remind colleagues that the report from the Government steering group shows clearly the limited nature of that 25.1% interest. According to the report, the 25.1% minority shareholder enables the State to have a degree of influence, comprising mainly a range of negative or blocking rights.There is no express right or power to direct Aer Lingus in the conduct of business, there is no control over employment levels in Aer Lingus by the State and the State cannot prevent a reallocation, reassignment or cessation of use of Heathrow slots by Aer Lingus in accordance with the current shareholding. I remind colleagues of the very limited nature of that shareholding.

While I would have preferred, and I said this before, that we had retained the 25.1% share, the key reason for retaining it - Fianna Fáil Members have addressed this - was to try to secure connectivity. Yet, when one considers to what the 25.1% share entitles the State, it does not have a guarantee on connectivity. What we have seen with the significantly improved bid from IAG is a greatly enhanced guarantee of connectivity. It is important to look at the details. Stronger protection will be granted to the State in terms of the ownership of Aer Lingus's current Heathrow slots than the protection that exists today. We know that the Minister for Finance will retain a B share. For the information of Senator Darragh O'Brien, that will be enshrined in the Aer Lingus articles.