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Seanad
‹ Order of Business

Aer Lingus takeover negotiations

Summary

Senator Conway voices concern about IAG’s Aer Lingus bid and its implications for Shannon and the national network; the Leader says the responsible Minister has been asked to discuss the matter.

Like most people in the mid-west, particularly in County Clare and specifically in Shannon, I note the bid which has been submitted to Aer Lingus by International Airlines Group, IAG, for a takeover of the airline. I also note with interest and some concern that Aer Lingus is accepting that bid. However, I welcome the fact that the Cabinet has decided to engage with IAG to seek clarification. In many ways Aer Lingus is like Eircom in the mid-1990s, when not just the business but the network throughout the country were sold. Had that been retained in public ownership, every home in this country would have broadband. Similarly, Aer Lingus holds very important slots, not just for the mid-west region and Shannon but for this country in terms of connectivity. It is not just connectivity to Heathrow but to the many parts of the world that are served from Heathrow.

While Aer Lingus is a fantastic brand and the management and staff have done wonders to turn the airline around and make it profitable, I humbly suggest that at €1.4 billion the airline is probably slightly over-priced. One must wonder if it is the Heathrow slots that make it so attractive for an organisation such as IAG to make such a lucrative bid. We must move with extreme caution before accepting these gifts from the east, as it were. We must think of the future business of this country and our connectivity with the rest of the world. The world is a global village and, most importantly from our perspective, we can get to the global village more quickly than others. Those Heathrow slots are part of our make up. They are part of the tourism and business product in this country and I would wish to know a great deal more before I would be happy with the sale of Aer Lingus.

Comment on this

The discussion on the Order of Business was dominated by three issues - Aer Lingus, debt and quantitative easing.

These issues were raised by quite a number of Senators.

Senator O'Brien raised the matter of Aer Lingus. As he stated, the 2004 Act indicated that any sale would be discussed by Dáil Éireann. It did not mention Seanad Éireann but I have requested that the Minister for Transport, Tourism and Sport, Deputy Donohoe, would come to the House to discuss the issue. As Senator O'Brien has rightly pointed out, the Minister, Deputy Donohoe, has been here on many occasions and I am confident that he will agree to the request from many Senators to debate the whole Aer Lingus situation.

The Government will do what is in the interests of the country in weighing up all options. The strategic importance of competition and connectivity in the Irish market remain vital considerations, as many Senators have stated. I am hopeful that the Minister will come to the House to debate the issue with us.

Senator Bacik and Senator Norris reminded us of the 70th anniversary of the liberation of Auschwitz. It is a reminder to all of us of the evils of what happened in that period and that we should never forget.

The question of debt and quantitative easing was raised. I will endeavour to have the Minister for Finance come to the House and address those issues. Last week, Members requested a debate on quantitative easing and I have asked the Minister for Finance to come to the House to discuss the matter.

Senator Cullinane commented on the arson attacks in the community in Waterford city over the weekend. I was in Ballybeg estate on Saturday morning and I was joined by the Minister of State, Deputy Coffey. What greeted us was sheer devastation at the GAA club. The ground floor was burned out completely, while the first floor, containing gear and everything else, was damaged beyond repair by smoke. We also visited the family and community resource centre, which was also completely burned out.

It is absolutely appalling to think that again this morning in the same estate or community an effort was made to burn down the boxing club. This was an attack not only on the people and community of Ballybeg but an attack on the Garda and all the people of Waterford by these criminals. I know the Garda is doing everything possible to apprehend the culprits and the force has the full support of the community in this regard. I understand a meeting on the matter is going on in the community as we speak. This community is strong and resilient. They are proud of their parish and rightly so and I believe they will not bend to this type of intimidation. I am confident that they will come out of this stronger than ever.

Senator Cullinane mentioned the question of resources. Obviously, the insurance companies will examine the situation as regards rebuilding. They will rebuild and be stronger than ever. Anyway, I assure Senator Cullinane and the community that the Government will not be behind the ace ball. Certainly, the Government will help with any capital grant aid that is necessary to support the community in Ballybeg. Everyone decries the despicable acts of these criminals, who are only a small number of people within a very decent community.

Senator Quinn commented on organ donations. As he mentioned, we had a comprehensive debate on the opt-out system.

Some people in this House disagreed with the idea. We had a good debate on the matter but perhaps it is time to consider holding another debate. I shall try to arrange such a debate.

Senators Moran and Heffernan raised an issue which was raised last week by a number of Senators. They included Senators Heffernan, Brennan, Jim D'Arcy and others. I refer to the second anniversary of the murder of Detective Garda Adrian Donohoe. This morning, Senator Heffernan also recalled the murder of Jerry McCabe. The Senator laid all his cards on the table last week and comprehensively blamed the Provisional IRA which he believes is still active in the Border areas and is responsible for diesel laundering, the dumping of sludge and many other criminal activities. We need the help of the community in this regard. People know who is involved in these crimes. I know intimidation has taken place but I call again on anybody with any information whatsoever, especially in regard to the killing or murder of Detective Garda Adrian Donohoe, to come forward and give it to the Garda as soon as possible. These criminals must be brought to justice. As I said, this matter was discussed last week on the Order of Business as well.

Senator Michael D'Arcy mentioned the hours of work to which some employers subject their employees and the way these hours are ordered prevents employees from claiming social welfare. I know the matter will be dealt with by a low pay commission that is being set up. Perhaps we can have a debate in the House at that point in time. I totally agree with the sentiments expressed by the Senator in that regard.

Senator Mullen mentioned the advantages of baby cooling treatment and the lack of such facilities in Galway and the west of Ireland. I shall bring the matter to the attention of the Minister. I will revert to him on the matter when I receive an answer and also in terms of the matter he raised last week.

Comment on this