Seán Ryan (Dublin North, Labour)
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Question 467: To ask the Minister for Transport if he will report on his most recent meeting with the Retired Aviation Staff Association regarding the acknowledged anomalies in the existing Aer Lingus-Aer Rianta pension scheme; if he will engage with the management of Aer Lingus with a view to reaching an agreement for the restructuring of the pension fund to enable CPI and salary related indexation of pensions of retired staff. [22376/05]

Róisín Shortall (Dublin North West, Labour)
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Question 475: To ask the Minister for Transport, further to Parliamentary Questions Nos. 306 and 311 of 31 May 2005, if he is now in a position to give a commitment that prior to the partial sale of Aer Lingus, he will use some of the proceeds of that sale to invest in the pension scheme for retired aviation staff in order that the scheme can be secured going forward; if the consultants appointed to advise him on the sale will be asked to examine this issue; the terms of reference which apply; and if he will make a statement on the matter. [22853/05]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 467 and 475 together.

As I indicated in the House on previous occasions, the pension scheme for general employees in Aer Lingus, the Irish airlines general employees superannuation scheme, is a multi-employer scheme which also includes the Dublin Airport Authority, DAA, and SR Technics, formerly FLS, a private sector company.

I met representatives of the Retired Aviation Staff Association, RASA, on 19 January 2005. The main RASA claim at that time related to salary and CPI indexation of its pensions. As the pensions are being paid in line with the terms of the scheme, there has been no obvious solution to the RASA concerns despite detailed examination over a long period of time. However, I indicated at that meeting that I would ask the companies concerned to keep the matter under review.

In addition to the above mentioned claim, in a recent letter to me, RASA has also stated that in the event of the sale of a majority shareholding in Aer Lingus, it wants the Government to underwrite and-or guarantee the pension scheme. It also suggests "that when Aer Lingus is sold, the pensioners are entitled to an ex gratia payment for a lifetime of commitment to Aer Lingus for shares they had to sell under law and for shares foregone".

I emphasise that the pension entitlements for employees of commercial State bodies, including Aer Lingus and the DAA, are matters primarily for the trustee, the members of the relevant scheme and the companies involved. The State has no involvement in the funding of these schemes. With regard to the recent Government decision to allow the sale of a majority shareholding in Aer Lingus, it is envisaged that the selected advisers will examine and consider a range of issues concerning Aer Lingus, including its pension schemes.

As I said previously, the question of an injection of State funds into the pension scheme, from whatever source, does not arise as any such proposal would run counter to established policy in this area and would, in all likelihood, be challenged by the European Commission as a State aid. I should also explain that legislation has been put in place to enable both Aer Lingus and the DAA to establish new pension schemes for their own employees and pensioners. This was provided for in the Aer Lingus Act 2004 and the Air Navigation and Transport (Amendment) Act 1998, as amended by the State Airports Act 2004.

However, it is a matter for the companies concerned to decide if and when a new pension scheme or schemes are to be established and the terms of any such schemes would be a matter for consultation with unions. The normal arrangement where pension schemes of State bodies must be approved by the Minister for Transport, following consultation with the Minister for Finance, will continue to apply. There is no guarantee that RASA's concerns can be addressed in any new schemes that might be established.

In the event of any new scheme or schemes being established, the Acts referred to above provide that existing pensioners who come within the scope of the scheme will be transferred to the new scheme unless they elect to remain in the existing scheme. The Acts also ensure that the benefits granted under such a new scheme or schemes shall not be less than those granted under the existing scheme.