Seanad debates

Thursday, 28 May 2015

10:30 am

Photo of Darragh O'BrienDarragh O'Brien (Fianna Fail) | Oireachtas source

-----and it would be able to give its opinion on the matter.I ask the Cathaoirleach to strongly reconsider motion No. 1, which I tabled on my behalf and that of my colleagues in Fianna Fáil. I look for support from everyone else for the motion to be taken today, before the Minister, Deputy Donohoe, comes to the House.

A number of issues have arisen. I listened to Deputy Michael McNamara in the other House outline why he will not support the sale. I also note with interest that SIPTU will not support the sale. I am astonished that neither the Taoiseach nor the Minister for Transport, according to the Taoiseach, has had sight of the Nyras report, which highlights the potential for massive job losses within Aer Lingus. The Taoiseach said yesterday that he had not seen any of the documentation, yet the Cabinet made a decision on it. I discussed this with Senator Bacik yesterday.

There is a very good reason for selling 74.9% of the airline, namely, to invest money in the airline, in new aircraft and in making the airline viable. Under EU state aid rules, direct Government investment in the airline was not allowed. The reason 25.1% was kept was to ensure that the State kept a strategic interest in the airline and its direction, and to make sure that the sphere of influence for the airline stayed in Ireland.

A false process has been going on for two years or more, since the Tánaiste and Minister for Social Protection, Deputy Joan Burton, brought in the Social Welfare and Pensions Act 2013. That was the start of it, because it gave the Minister the power to remove people unilaterally from their pension schemes and reduce pension scheme benefits unilaterally without the permission of members. That was to make sure that Aer Lingus and the IASS knew they could build up the deficit. They doubled the deficit within two years because the Government had laid out the roadmap for the changes it intended to make.

The Government then brought in savage cuts in the State airports Act, for which Fine Gael and the Labour Party voted, and took 60% of pension benefits from long-service members and six weeks' pay from retired people who had given their whole lives to the airline. The Government did that. Lo and behold, two weeks after that, an offer came in from IAG to buy the Government stake. I do not think it is a coincidence; it was all choreographed and had been coming down the track. I said that to the Tánaiste over two years ago and she denied it at the time. The Labour Party denied it at the time and it lied at the time. That is a fact, because this was all choreographed.

The reality of the situation is that the 5,000 workers in the airport and the 3,500 people working in Aer Lingus are concerned about their jobs because the Government has not done proper due diligence on this offer and considered the Nyras report, which highlights job cuts of 20% in ground handling, 40% in catering, 15% in maintenance and 25% in heavy maintenance, as well as cabin crew and pilots.

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