Kathryn Reilly (Sinn Fein) | Oireachtas source

Plain and simple, this is the wrong deal for Ireland. Aer Lingus is worth infinitely more to Ireland than the €335 million the Government will get for cashing in on the 25% stake that Fianna Fáil left the State with. We should retain our Aer Lingus shares, recognising that it serves the island. It would be a productive investment by the State, rather than a divestment at a time when investment in the economy is quite low. We need to think about a long-term industrial and enterprise policy and the role of indigenous firms. Enterprise policy is not confined to one company and a cashing in of these shares; we need to think about how our share in this airline serves our enterprise policy as part of a bigger picture. We no longer own Aer Lingus, but the retention of our share is very important. State ownership and the holding of stakes should not simply be to rescue a company; rather, it should be a method for ensuring long-term growth, particularly as this is an open island economy. Aer Lingus is a valuable asset, not just for the quick buck it could return but in terms of delivering long-term sustainable benefits to the island economy.

I refer to a think-piece published by TASC earlier this year in which Paul Sweeney argued that instead of selling our shares, Ireland should invest more in Aer Lingus by increasing its shareholding in the company from 25.1% to 50.1%. He argued that the current push to sell Aer Lingus was not motivated by the best interests of Ireland or Aer Lingus, and that Aer Lingus has many strengths, such that consolidation into a major airline group is not necessary to ensure its survival. Aer Lingus is one of the most profitable airlines on the transatlantic route, and this would not have happened if it had been under the control of IAG. Between 2018 and 2020, Aer Lingus will take delivery of €2.5 billion worth of assets in the form of nine Airbus A350-900 aircraft. This means that, if bought new, the current fleet held would cost €5.3 billion. Of course, it is not a brand new fleet, so depreciation must be allowed for. However, the IAG offer of €1.35 billion for the whole company is ridiculous.

Aer Lingus brings secure and consistent connectivity to Ireland, which is vital for any island but particularly for a country that has attracted major multinational companies in recent years. Aer Lingus has made Ireland an attractive destination, and its reputation for quality promotes a positive image of Ireland across the world, as we saw during The Gathering, for example. Irish people have taken pride in Aer Lingus and continue to do so. However, if this deal goes ahead, Aer Lingus is facing an uncertain seven years, which could possibly be its last seven years as we know it. It will also be a very uncertain time for the thousands of workers who make their living as part of Aer Lingus or peripherally to Aer Lingus operations in Ireland.

We have heard about commitments and assurances, but these are perhaps just a stay of execution which should never have been entered into. Behind that lies the major question about whether these assurances can be enforced or fulfilled. Do we really believe it is possible for this State, in selling 25% of a company, to hold a major multinational conglomerate to agreements in our interest for seven years and onwards? We must remember that IAG is a private, for-profit organisation with only two interests - its bottom line and its shareholders, of which Ireland is not one. IAG has no interest in the best interests of Ireland, its people or the 4,000 employees of Aer Lingus.

IAG's track record shows that its interest is not in providing jobs or supporting the countries from which its airlines come. For example, when Iberia became part of IAG in 2011, 4,500 jobs were cut, more than the entire staff of Aer Lingus. Other Senators have referred to the Nyras report and said that the targets for efficiencies could result in cuts of €60 million. We need only look at the example of Iberia when it became part of IAG. No one on the IAG board will be arguing on behalf of Ireland's interests.

It has been made clear on many occasions that the Heathrow slots are crucial for Aer Lingus and for Ireland, as they provide connectivity with one of our main sources of trade. However, what we are getting for our stake in Aer Lingus is less than the value of Aer Lingus's Heathrow slots alone. If IAG decides to sell Aer Lingus and wrap up the company, who knows what would happen to the assurances we have been hearing so much about? As mentioned by other speakers, under this deal, Ireland will, in time, become like Scotland, which was ignored by IAG through British Airways, which was purely interested in increasing its business out of Heathrow. What hope, then, for Cork, Shannon and other regional airports? Chambers of commerce and other bodies in these areas voiced grave concerns about the bid when they attended the joint committee.

Like other Senators, I wish to raise concerns about the workers who have deferred pensions. They will be forced to take a 40% cut in their pension entitlements. What hope do they have of a fair resolution after this sale?

We are facing another seven years of uncertainty and a struggle for the State to maintain its connectivity. There will be seven years of industrial strife and hardship for workers and, for this island, seven years of being dependent on the crumbs from a major multinational in order to provide the much-needed connectivity on which we have come to depend. Sinn Féin opposes this decision.