Aer Lingus Shannon base closure
Deputies raised the closure of Aer Lingus’s Shannon base and its threat to mid-west jobs, connectivity and balanced regional development. The Taoiseach said Government was deeply concerned, had supported aviation throughout the pandemic, and would meet Aer Lingus management; the discussion was then cut off and the chair moved on.
I ask for concise questions and answers so we will get through everyone. I call Deputy Quinlivan on behalf of Sinn Féin.
Comment on this
Yesterday, the mid west suffered another hammer blow with the decision of Aer Lingus to close its Shannon base. This has the potential to be catastrophic for the mid-west region. The Shannon-London-Heathrow connection, and these onward connections are vital to the people of the mid west and businesses in the area.
Sinn Féin vigorously opposed the privatisation of Aer Lingus in 2015 and we said at the time that it would leave the State at a strategic disadvantage and could cost jobs. The decision to sell off this key State asset now severely weakens the Government’s hand in this situation. We warned at the time that Aer Lingus was of such strategic importance to the State and to the mid-west region that it must be kept in State ownership. My thoughts are with the families and workers today. The Minister for Transport has taken a hands-off approach to aviation for too long and aviation workers are paying the price.
Yesterday the Taoiseach washed his hands of the problem by blaming it on the pandemic. The anger from staff and their families is palpable. This cannot be blamed on the pandemic alone. The real problem is the Government’s lack of planning. We have a crisis in aviation and jobs are being lost, many of which will not be replaced. We need direct intervention from the Taoiseach as the Minister for Transport is not up to the task.
Comment on this
First of all, the Government is deeply concerned about the decision of Aer Lingus yesterday. We are not blaming anyone but are seeking to do something about it. Government has been supporting both the airlines and the airports from the beginning of the pandemic, which I say without contradiction, through the means of the employment wage subsidy scheme, EWSS, the various other schemes and the capital supports to the airports in capital and through the Ireland Strategic Investment Fund, ISIF, to support Aer Lingus. ISIF was condemned earlier but it has helped in terms of the liquidity of Aer Lingus, in particular.
I am acutely aware of the devastating impact that the Covid-19 restrictions have had on travel and aviation. This, unfortunately, cannot be denied. This is not to blame anyone; it is a reality. The virus has killed travel for the past year but we are determined to reopen aviation and we will work with the interests and workers in Shannon to see if we can get the situation changed.
Comment on this
I also raise the issue of Shannon. I live very close to it in my corner of Tipperary. The fact of the matter is that the baseline of traffic growth in Ireland and the volumes, taking 2013 as a baseline, is that 96% of all growth has been in Dublin. That is the real issue here. I have two questions for the Taoiseach. As to the €150 million ISIF loan, all other countries which gave state aid to airlines put conditions on this funding to protect workers and jobs. What conditions were put on this €150 million to protect jobs and can the Taoiseach outline these to the House?
Second, why in the name of God has the chairmanship of Shannon Airport been left vacant? When it came to this decision this week Aer Lingus had no one to talk to. I have asked this question of the Minister on multiple occasions. There has been no chairperson for the guts of a year. This is ridiculous.
Comment on this
First of all, ISIF is a commercial loan facility in respect of ensuring liquidity to protect jobs, which was a big objective at the time.
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Germany and Spain have protected the jobs.
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The airlines have lost heavily over the past year because of the pandemic and received liquidity support through the ISIF pandemic stabilisation and recovery fund.
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There was a €32 million regional State airports programme which gave capital and current funding to Shannon and Cork Airports and which was important to them. Getting international travel back up and running is obviously the key to the continued economic well-being of Shannon, of Cork and the regions. Through the urban regeneration and development fund, URDF, for example, we have invested heavily in the regions. We need to grow the regional cities-----
Comment on this
There has been no chairman for a year.
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We need to build up the cities around the country. That is not an issue of points of contact and the chairman is not the issue.
Comment on this
There has been nobody there for a year.