Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I move:

That Dáil Éireann:

—shares the Government's deep disappointment at the Aer Lingus decision to end the Shannon-London Heathrow service;

—agrees with Government that this decision is contrary to Government regional and aviation policy;

—recognises the importance of the international connectivity of Shannon airport as a means of facilitating the wider region to develop further its business and tourism activities;

—notes and approves the Government's commitment to regional development through the National Spatial Strategy;

—notes the considerable support for the mid-west region through the National Spatial Strategy and the National Development Plan;

—endorses the commitment in the Programme for Government to a linked metropolitan corridor from Waterford through Cork, Limerick/Shannon to Galway — complemented by direct links between Waterford and Limerick — with a view to developing a national counterpoint to Dublin;

—endorses the Government's support for the efforts of the Shannon Airport Authority to secure enhanced air access to/from Shannon including a connection to London Heathrow Airport;

—notes that the comprehensive transport infrastructure development programme being implemented under Transport 21 addresses the key surface transport links to Shannon airport; notes that €2 billion has been committed to roads projects in the Shannon region which are already in construction or at an advanced stage in planning and notes that the Limerick Tunnel and connecting roads are in construction and that construction is due to commence on the Ennis-Athenry section of the N18 early in 2008. Funding has also been approved for the first phase of the western rail corridor from Ennis to Athenry and €10 million has been allocated to Iarnród Éireann this year to commence this work. Funding in principle has been approved for phase 2 of the corridor between Athenry and Tuam;

—supports the intention to position Shannon Airport Authority on a financially sustainable basis with a growth oriented business plan and enhanced pre-clearance facilities for transatlantic traffic;

—notes the continued delivery of the enterprise agencies' support programmes and activities, including the achievement of the targets set out in the new Shannon Development Corporate Plan; and

—welcomes the Government's intention to establish a focused tourism marketing programme to promote the wider Shannon catchment area in addition to the ongoing roll-out of existing programmes by Tourism Ireland, Fáilte Ireland and Shannon Development.

I congratulate the Leas-Cheann Comhairle on my first occasion in the House since his elevation. I am delighted to have the opportunity to address the House on an important motion on the withdrawal of Aer Lingus services between Shannon and London Heathrow. The importance of the issue for the House, the Government and the people of the mid-west and west is the reason I put the motion before the House for discussion. I propose to outline the events surrounding the Aer Lingus decision, the rationale given by Aer Lingus for it, the issues that arise on foot of it and the actions taken by Government since it was made. I will also deal with questions on the 25% Government shareholding and the Aer Lingus initial public offering.

At a short meeting with the chairman and chief executive of Aer Lingus on 3 August, I was informed that the company intended to open a hub in Belfast and to transfer the Shannon-Heathrow slots to the new route. While I conveyed my support for the move to establish the Belfast hub, I expressed concern and disagreement with the decision on the reallocation of the Shannon-Heathrow slots. I reiterated that view directly and indirectly to the company on my behalf and on behalf of the Taoiseach and Government on several occasions over the following weeks. At a more formal meeting with the chairman and chief executive on 28 August, I emphasised again the Government's extreme disappointment with their decision. I set out, in particular, that the decision ran counter to public policy in a number of respects, including the national spatial strategy, regional development and aviation policy, and while it was recognised that Aer Lingus was not an instrument of Government policy, there was an expectation that it would take these wider policy issues into account in making commercial decisions. I also made the point that Aer Lingus should have engaged more with its customers and wider stakeholders before announcing its decision.

The chairman said the decision was taken to establish a new base at Belfast International Airport, following extensive evaluation of growth opportunities throughout Europe. He said the decision in this case was commercially robust and the company was not proposing to reconsider it. Aer Lingus has set out the basis for the decision to withdraw its Shannon-Heathrow service with effect from next January as follows. First, even though the Shannon-Heathrow route was profitable, it underperformed when compared to the routes between Cork-Heathrow and Dublin-Heathrow and the projected Belfast-Heathrow route. Second, the chairman said that there was a valuable commercial opportunity to be exploited at Belfast and the company could achieve a better return on the utilisation of aircraft and Heathrow slots for the purposes of a Belfast base rather than continuing with the Shannon-Heathrow service. Third, according to the company, Belfast average fares, load factors and costs are expected to be more attractive than Shannon. In addition, Belfast is expected to benefit from economies of scale as it grows.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Bookings are bad.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

It was evident in the first week of this controversy, from the statements made publicly, that Aer Lingus was set on a course from which it would not deviate. That is certainly the response I got from the company.

I investigated the possibility of the State acquiring Heathrow slots to replace the Aer Lingus service. I was informed that this was not legally possible. It is not open to the State to acquire slots as the applicable rules allow only for slots to be assigned to airlines. I also investigated the option of providing funding to assist in acquiring such slots, but again this or any other form of direct subvention of a London Heathrow slot is constrained by the state aid rules. Once this became clear, it was incumbent on everybody to move on and focus on securing a replacement for the Aer Lingus service as quickly as possible. That has been my focus and the focus of the Government's and Shannon Airport Authority's efforts since then.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

Shame on the Minister; he should have stopped it.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The question has been raised more than once as to why the Government, as a shareholder, is not intervening directly in the running of Aer Lingus and either calling for or supporting the call for an EGM. Neither I nor the Government contemplated supporting a call for an EGM from Aer Lingus's main competitor, to have this decision reversed.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

Shame.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

It was quite clear from the outset that the attempt to call an EGM had more to do with commercial rivalry than a concern for Shannon or the mid-west.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

Why did the Minister not call it?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I am delighted to hear the Labour Party being so supportive of Ryanair for a change.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

What about the people in the region?

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

We are supportive of the people of Shannon.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

The Minister could have called the EGM.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

The Minister should address his remarks through the Chair. Members should allow the Minister to proceed without interruption.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Even the ESOT refused to contemplate supporting such a move. I accept, arising from that decision, that it is legitimate to raise two questions: first, why does the Government retain its 25% stake if it is not prepared to use it to "protect" these slots and, second, why did the Government privatise Aer Lingus and was privatisation wrong?

These are legitimate questions. I will take each in turn. The State retained a strategic shareholding of over 25% with two key objectives in mind. First, it provides a major block to a hostile takeover by enabling the State to prevent a compulsory takeover of 100% of the company. Even if the company was acquired, Aer Lingus would have to continue to be operated as a separate entity. Members will recall another incident involving Eircom where a company making a takeover bid acquired 80% of the shares. The other 20% had to be sold to the company. It was to prevent such a scenario arising that the Government kept the strategic shareholding. Furthermore, the acquiring entity would not be able to extract the Aer Lingus assets, including slots and cash. This provides a significant disincentive to hostile takeover attempts.

The second strategic advantage of a 25% shareholding is that it enables Government to protect the memorandum and articles of association of the company. This ability to block special resolutions to change the articles provides a safeguard against any disposal of Heathrow slots: "Disposal of slots relates specifically to the sale of slots and/or the transfer of slots between airlines and does not apply to the reallocation of slot pairs to new or existing bases." However, the Government's legal advice is that, having regard to the duties of the board of directors pursuant to the Companies Acts and the memorandum and articles of association of Aer Lingus, shareholders do not have the power to overrule management decisions on business matters. In effect, this means that even if the Government on its own, or in combination with other shareholders, called an EGM and voted for the restoration of this link, management of Aer Lingus is not obliged to follow any directions from the shareholders regarding business matters or to obey any resolution regarding such matters.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

What about the board?

Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context

Who appoints the board of directors?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Regarding the second question on the IPO, it is nonsense to suggest that the Government should not have privatised the company. If that decision was not taken by Government, I have no doubt that in two or three years this House would be debating the survival of Aer Lingus in a globalised and increasingly competitive aviation market.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

It was doing very well, as the Minister is well aware.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The fundamental purpose for which the IPO was undertaken was to create a commercially independent Aer Lingus with access to the capital markets, which would serve the Irish economy more effectively than an Aer Lingus in ongoing State ownership and subject to the constraints of state aid rules.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

And social responsibility.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

We see the positive results of this decision with new services being developed. In particular, there has been a major expansion of transatlantic services and during the coming winter season, the company will serve seven cities in the US, compared with four previously. The IPO also made it possible to raise new equity to support the future payment of pension increases, which the Labour Party will also support, and thereby address a key concern of the Aer Lingus trade unions and workers. Without an equity injection, the company would have faced major difficulties in addressing these needs and meeting its social responsibilities while maintaining its competitiveness in a challenging market.

Given that it is recognised by the Government that Shannon Airport has a pivotal role in the general economic development of the region, it was decided that the potential impacts of the decision in that context——

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

The Minister washed his hands of it.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

——should be examined.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

To do this, a cross-departmental team of senior officials was tasked with assessing the actual implications of the decision in terms of connectivity and to make recommendations in this wider context. The senior officials group looked at the implications of the decision from a connectivity, business and tourism point of view.

The senior officials group concluded that the withdrawal of the Heathrow service is a loss to the Shannon region.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

That was brilliant, very deep.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The negative impact from a connectivity point of view almost completely relates to one-stop connectivity and flight duration to key destinations in Asia, the Middle East, Africa and Australia, as such destinations must generally be accessed through a major hub. This has obvious adverse effects in terms of business travellers and other users from the Shannon region. However, the senior officials group confirms there should be little impact on connectivity with destinations in the Americas as the best route is as likely to be through one of the US hubs served directly from Shannon.

These services are enhanced when one takes into account the link up by Aer Lingus with the US carrier, Jet Blue, which makes possible access to and from Shannon to 50 airports in the US, Mexico and the Caribbean. This is in addition to the new direct services being provided under the "Open Skies" arrangements. In the case of European origins/destinations, the analysis found that there is no loss of one-stop connectivity but travel via Heathrow was found in general to be faster.

The senior officials group also notes that counties in the wider mid-west region, and along the western seaboard in particular, continue to be well served by air services at the State airports in Shannon and Cork and also at the regional airports in Kerry, Galway, Sligo and Knock.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

How do we get to the middle east, Africa, Australia and New Zealand?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Tourism Ireland, at the request of the Department of Arts, Sport and Tourism, prepared an analysis of air capacity as an input to the senior officials group. It noted that the withdrawal of the Aer Lingus Heathrow service, together with the reduction in direct services from North America to Shannon due to "Open Skies", could have an adverse impact on the profile of overseas visitors to the west of Ireland. It also has implications for high-yield business customers interlining to Shannon via Heathrow from North America, continental Europe and other long-haul markets.

The potential loss or displacement of this valuable business to other parts of Ireland is a matter of serious concern. However, the analysis also took account of Ryanair's intention to increase its capacity from London to Shannon in response to the Aer Lingus withdrawal. As a consequence of this additional capacity, the consultants considered that the result of these changes will be a small net increase in the level of direct air capacity from London to Shannon.

The senior officials group has drawn a number of conclusions in relation to the impact of the withdrawal of the Shannon Heathrow service on the Shannon region. These conclusions acknowledge both the challenges facing the region but also the opportunities arising through investment and the various regional development initiatives.

As a next step the group has proposed the following:

Taking account of these factors and the other issues addressed in this report, it is suggested that the relevant Ministers, following consultation with the four Mid-West planning authorities, together with the Mid-West Regional Authority, report back to Government as soon as possible on strategies for unlocking the further development potential of the Limerick-Shannon Gateway and its wider region, in light of the substantial investment planned under the NDP and Transport 21 to create an integrated infrastructure underpinning the region's competitive position.

Under the State Airports Act 2004, Shannon Airport Authority has now been mandated to produce a business plan to assess the viability of an independently owned and run airport. A draft of the Shannon Airport plan is expected to be prepared during October, which will be submitted to the Ministers for Transport and Finance, for their approval.

The Shannon Airport Authority has been actively engaging with airlines with a view to securing new services that would redress the reduction in connectivity that will follow from withdrawal of the Aer Lingus service to Heathrow. I commend the Shannon Airport Authority for its positive response to the present difficulties and wish it well in its efforts to promote the development of new services.

The authority has specifically identified airline services to the key European hub airports of London-Heathrow, Paris, Amsterdam and Frankfurt as being of key strategic importance to its ongoing development. The airport recently published a European hub airport incentive scheme for services to come into operation in 2008, which provides for significant discounts in airport charges and for the possibility of marketing support to be provided by Shannon Airport for new services.

While the loss of any passengers can affect airport revenues, the Shannon Airport Authority expects that many current Shannon to Heathrow passengers will be accommodated on other airlines serving the London market and the impact on revenues should be relatively modest. I look forward to receiving their business plan in the near future.

Before I conclude, I want to address some of the more extreme and politically motivated statements made on foot of this Aer Lingus decision——

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Including by the Minister's own colleagues. Answer the Minister for Defence, Deputy O'Dea. Where is Cromwell now?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

——to the effect that this Government has no interest in and no commitment to the mid-west or the west. That is a blatant lie.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

I do not think that language should be used.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Withdraw.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

As Minister for the Environment, Heritage and Local Government, I initiated the national spatial strategy with the full support of the then Government——

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

There is not much sign of the spatial strategy with 200 jobs gone in Shannon.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

——to ensure the benefits of economic prosperity were delivered to every corner of Ireland.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

On a point of order, the word "lie" is not parliamentary language. I ask the Minister to withdraw it.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Deputy is completely out of order with his point of order. I did not level an accusation——

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

It is not the first time.

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

There was something of an uproar at the time. As far as I know it was not levelled at any person.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

On a point of order, it is in the speech.

Martin Mansergh (Tipperary South, Fianna Fail)
Link to this: Individually | In context

On a point of order, surely there is a difference between calling a statement a lie and calling a speaker a liar.

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

If one uses that word one is asked to withdraw it.

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

It is a matter for the Minister and it does relate to the statement and not to an individual.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

On a point of order it relates to a word used in the House whether spoken or written. The fact is the word "lie" was used.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I suggest the Deputy read Standing Orders and the customs——

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

I suggest the Minister withdraws the word.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I will not withdraw it because it is a lie.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

Deputy O'Dowd's leader called the Taoiseach a liar last night.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

To clarify the issue, the word "lie" cannot be used in this House.

Martin Mansergh (Tipperary South, Fianna Fail)
Link to this: Individually | In context

Will Deputy O'Dowd ask Deputy Kenny to withdraw what he stated about the Taoiseach?

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

It does not refer to any individual and it has not taken the name of any individual.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

What the Minister states is that people who oppose him use lies.

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

The Minister has made a reply.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

I do not accept it and I protest in the strongest way.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Deputies do not want to hear the remainder of my speech and will try to talk me out.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

On a point of order and I do not want to delay proceedings but is the Minister's statement a slur on an entire category of representatives of the mid-west including his own backbenchers and Cabinet colleagues?

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

It is only for specific extreme and politically motivated people.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I know Deputies are having difficulties following this but for their benefit, the lie is that this Government has no interest in and no commitment to the mid-west. This is a lie.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

It is true.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

As Minister for the Environment, Heritage and Local Government I initiated the national spatial strategy with the full support of the then Government to ensure the benefits of economic prosperity were delivered to every corner of Ireland.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

On a point of order, does the Minister state the workers and tourism interests all tell lies?

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

That is not a point of order.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

I want clarification.

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

The Minister still has two minutes to speak and Deputies are taking from their own time.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

Does the Minister state the workers are telling lies?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I gave the Deputy the courtesy——

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

Does the Minister state the workers in Shannon industrial estate——

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Deputy asked me a question.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

——and all people involved in Shannon are telling lies?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Does he want me to answer or does he want to filibuster? I want to answer the question.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

Repeat it. Does the Minister state they are telling lies? He is——

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

The Deputy must address his remarks through the Chair.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

Will the Acting Chairman clarify whether the Minister is stating the workers in Shannon are telling lies?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

If Deputy Hayes sits down I will answer him.

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

It is not——

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

I am addressing my remarks through the Acting Chairman. Will he check for me, on a point of order, whether the Minister states they are telling lies? This is all I want to know.

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

It is not a point of order.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

It is a point of order. It is a point of clarification.

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

The Deputy has made his point.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

For the benefit of the slower Deputies in the House, I stated the charge that the Government has no interest in and no commitment to the mid-west is a blatant lie.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

That is the Minister's interpretation.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

That is for Deputy Hayes if he has not caught up with the rest of us yet. I ask the Deputy to read the script.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

I have read it.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

If he is having difficulty we will get glasses for him so he can catch up with the rest of us.

As Minister for the Environment, Heritage and Local Government I initiated the national spatial strategy with the full support of the then Government to ensure the benefits of economic prosperity were delivered to every corner of Ireland. That Government and its successors, including today's, is still committed to that strategy which sees Limerick-Shannon as one of the nine gateways which is benefiting from substantial investment under the national development plan in physical infrastructure, social infrastructure, health care and social inclusion measures. This and previous Fianna Fáil led Governments have committed themselves to ensuring that Limerick-Shannon, as Ireland's largest urban area after Dublin and Cork, is a key economic driver for the mid-west region. This and previous Fianna Fáil led Governments have created the Atlantic gateways concept covering cities from Waterford to Cork and Galway to ensure a counter point to the Dublin area, all of which was opposed by Deputies opposite.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

It was not.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

We have created the gateways innovation fund to ensure extra funding is available to these gateways. In my area of responsibility alone, a comprehensive transport infrastructure development programme will address all the key surface transport linkages to Shannon Airport——

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

What about the western rail corridor?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

——with an overall financial commitment of approximately €2 billion.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
Link to this: Individually | In context

It is not even in the national development plan.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The plan will see the completion of a package of measures leading to improved road and rail access for the Shannon and wider region. This includes the upgrading of the Atlantic corridor linking Donegal with Waterford via Limerick——

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

One cannot drive through the corridors.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

——where construction has been brought forward by three years to 2008. It includes construction of the Limerick tunnel, the upgrading work on the roads linking Limerick——

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

When last did the Minister drive through Limerick?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

——with Nenagh, Cork and Adare and many other projects, the evidence of which is seen by the Deputies opposite, very much to their annoyance. Last year the Government approved funding of approximately €100 million for the development of the first phase of the western rail corridor from Ennis to Athenry with a view to completing that project in 2008.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

God Almighty.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Funding in principle has also been approved for phase two——

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

Will it open in April 2008 as promised?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

——of the corridor between Athenry and Tuam for completion by 2011.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

Will that phase open on time?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

That is only in my own area of responsibility and that surely proves, even to the slowest learners on the far side of the House, that this Government is not neglecting the west or the Shannon.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

On a point of order——

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

That is unparliamentary language.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I commend the motion to the House.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

To describe somebody as a slow learner in educational terms is one issue but it is a pejorative and unacceptable term coming from one who was himself a teacher. It is an appalling and shameful epithet to put on anybody.

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

—recognising the strategic importance of the Shannon-Heathrow, Cork-Heathrow and Dublin-Heathrow services for the economic development of the country;

—noting the Government's repeated assurances that, notwithstanding the privatisation of Aer Lingus, these connections would be safeguarded by the airline's Memorandum and Articles of Association and by the State's continued ownership of 25.4% of the airline's shares; and calls on the Government to fulfil its commitment to the Irish people by exercising its voting power to ensure the retention of these strategic air links.

I wish to share time with Deputies Breen and O'Donnell.

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

Is that agreed? Agreed.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

The issue here arises from the statement by the Minister for Transport that he considers that four London Heathrow slot pairs for services to and from Shannon would be critical to ensuring connectivity to these airports because this is the minimum necessary to ensure a spread of flights throughout the day. The date of this statement is October 2006.

In April 2007, just before the general election, the Minister for Transport, again in reply to a question from Deputy Finian McGrath, that wonderful Independent Deputy, gave the same response as in October 2006. Government policy, clearly enunciated right up to the general election, was very clear. At the heart of the transport policy and at the heart of Shannon Airport was an absolute commitment to retain connectivity between London Heathrow and Shannon. The commitment was absolutely clear and unambiguous until the decision was made by Aer Lingus. The Government does not act as it should in exercising its rights.

The Minister said the first he heard about this was when the chairman of Aer Lingus spoke to him. I spoke to Aer Lingus and I was told this matter was discussed by the board of Aer Lingus before the decision was made public. The Minister has the right to appoint three representatives to the board of Aer Lingus. So far he has appointed only one representative. There were two vacant seats at that meeting when the Aer Lingus proposal was being discussed. Those were the seats the Minister for Transport could and should have filled so the arguments being made by his backbenchers and by us could have been articulated at that board meeting. Clearly two of the three representatives were absent because the Minister had not bothered to appoint them to that role.

Our party is very clear on the issue. Both former spokespersons on transport, Deputy Olivia Mitchell and Deputy Denis Naughten, made our position clear on the privatisation debate. Deputy Denis Naughten, in particular, got a commitment from the Minister, Deputy Brennan, that the equivalent of a White Paper would be laid before the Houses of the Oireachtas before the privatisation Bill would go through. Fine Gael, as Deputy Naughten enunciated at that time, said it would not support the Bill unless there was a clear and absolute commitment to the argument specifically and particularly in regard to the slots and connectivity with Heathrow being laid before the Houses. The Minister, Deputy Brennan, signed on but the next Minister, Deputy Cullen, signed off. Sitting around the Cabinet table when they signed off on that White Paper on the future of Shannon Airport was the Minister for Defence, Deputy O'Dea. The Minister, Deputy O'Dea, was asleep at the Cabinet table and he allowed the arguments to be put forward.

The reality is that we have a Government that has abandoned 350,000 passengers annually between Dublin and Heathrow. The Minister made much in his speech about the fact that one can still get to London — of course, one can. Of the 350,000 who travel annually through Heathrow, approximately one third go there for onward connectivity which will not be provided from 1 January because there will be no flights to and from Shannon Airport through Heathrow. That is a fact and it is incontrovertible. I am surprised the Minister did not allude more to what we have read in the newspapers about the efforts he is supposed to have made in regard to attracting British Midlands or whoever he can into the area to replace the flights that are being lost. The truth of the matter is that the Shannon area, Limerick, Clare, north Tipperary, Kerry and so on are significantly and adversely affected by this decision. There is no articulation of the view of that community or of his backbenchers in what he said today. He has not insisted, as he has the right to and as the Minister led us to believe he would in his statement, on defending the sale or the transfer of those slots.

The Department of Transport was very helpful to me when I asked it about this issue. The difference between what was contained in the newspaper articles and the truth is that if the slots were sold, leased or transferred by Aer Lingus to whatever other company, the Minister would intervene and call the EGM and direct the company to act in a certain way. Because Aer Lingus is moving the slots, regardless of where they are going, he has refused to intervene. Effectively, there was no guarantee in the words of the Minister. There is no guarantee from this Government that it will——

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

That issue was dealt with at the time by me.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Absolutely. The nub of the issue is that the Government failed to act. I have news for the Minister. I understand an EGM of Aer Lingus will be called. I spoke with Aer Lingus yesterday and I was told an EGM will be called but not to discuss this specific issue but purchases within the fleet or wherever. Is the Minister aware of that and, if so, will he represent us and articulate and push the views of the vast majority of people in this House and in the Shannon region, that they want Aer Lingus to look again at the proposed retention of the slots and retention of the service? Other attractions could be offered — I want to be constructive on this issue. If all else fails and if Aer Lingus, BMI or another airline will not do it, the Government could declare a public service obligation and advertise for tenders to retain the connectivity between Heathrow and Shannon. I have a list of more than 225 flights, some of which are inter-country and not just intra-country which the Minister could examine. If nobody else steps into the breach, the Minister has a duty of care to the people of the mid-west to retain the onward connectivity provided by the link between Heathrow and Shannon Airport. A good argument can be made in the case of the west of Ireland for the provision of effective connectivity to the wider world via European hubs, which is entirely in line with the key aims of a PSO service based on regional economic and social development. The Government has an alternative. The Minister has choices in filling the board, in addressing an EGM and, if all else fails, to declare a public service obligation. Many constructive acts can be carried that can, will and do support the views of the people, particularly the business community in that area.

This is a critical issue based on the fundamental truth that we cannot trust the Government on transport. We cannot believe it in the answers it gave no more than three or four months ago. They mean nothing when the Minister sits around the Cabinet table with his colleagues one of whom, the Minister for Defence, Deputy O'Dea, is clearly asleep when it comes to his constituency. We challenge all the Government backbenchers, Ministers and Ministers of State from the region not just to vote for our amendment but also to walk through the lobbies and stand up and vote for the people of the area, the Aer Lingus workers, Shannon Airport and the whole mid-west.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Walk the walk.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

This is all about the west of Ireland and connectivity. It is about Knock, Limerick, Cork and Kerry. The reality is that the vast majority of Heathrow connections are from the east coast; we will be down to five in the west. The Minister should do his job — he is not doing it. He has failed abysmally in his time in office. He has not done his duty. He has not honoured the word of the Government to protect and defend Shannon.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

A sign on the desk of former US President Harry Truman read, "The buck stops here". The buck stops here with the Minister, Deputy Dempsey. When the debate did not take place in this House yesterday the buck stopped with the Government. Large numbers of Aer Lingus workers travelled to hear the debate and the Government tried to put every obstacle in the way of dealing with this issue. We wanted to deal with it. The Government cannot run from it and will be held to account this afternoon.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

It happened through Fine Gael's own stupidity.

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

The Minister is not allowed to say that in this Chamber.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

On 7 August 2007 the skies fell in on Shannon. The west of Ireland's bridge to the world was taken away in a callous fashion.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Deputy wants to take it away from Cork.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

While this crisis raged in the west of Ireland, the Government was nowhere to be found. The Taoiseach had been last seen leaving the Fianna Fáil tent at the Galway races heading south. However, just like Nero, he chose to sit idly by while the economy of the west of Ireland faced one of its greatest challenges. Again today the Taoiseach is not here as he is meeting his constituents at the National Ploughing Championships. When the Minister finally appeared he showed no understanding of the seriousness of the situation when he claimed that the key business and tourism leaders in the region were exaggerating. He said that connectivity to Heathrow was not "the be all and end all" for Shannon. For the Minister for Transport to say that the region was exaggerating and claim that we have been telling blatant lies this morning is beyond belief.

Does the Minister believe that Element Six is exaggerating considering that it purchases 2,000 seats per annum and employs 630 people? Avocent Ireland purchases 1,000 seats and employs 160 people. Olympus Ireland purchases 600 seats — just to name a few. Would the Minister claim the Doonbeg Golf Club was exaggerating when it put a €50 million extension on hold or Dromoland Castle was exaggerating when it was forced to put a €25 million investment on hold?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

No, but I would say that the Deputy's colleague who claimed that 100,000 jobs would be lost was exaggerating.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

They were apparently exaggerating in the Minister's eyes and perhaps he thinks they were telling blatant lies as well. Aer Lingus claims the decision was taken on a commercial basis. The Minister is a major shareholder. Dermot Mannion said that the Belfast route would be profitable from the start. However, Dermot Mannion also said that the Dublin to Dubai route would be profitable and now we hear that this service is to terminate. Already we hear that pre-bookings for the Belfast routes show they have only sold 175 seats for the month of January out of Belfast, while the competitor, Ryanair, has sold 1,100 out of Belfast for the same period.

The Aer Lingus Shannon to Heathrow route is a different story. A profitable route carrying 350,000 passengers with a 75% load factor is considered remarkable. After weeks of huffing and puffing, in a belated announcement, the Minister stated that he realised that connectivity from Shannon to Heathrow was essential. This admission was like the conversion of St. Paul on the road to Damascus. Rumour has it that a new airline will start to operate the route as soon as possible. This is not true and in any event, a quick short-term fix is not the answer. The best way to ensure long-term connectivity to the region is for Aer Lingus to continue to serve the Shannon to Heathrow route.

The Minister promised to deliver a transition period for Shannon Airport after the introduction of open skies but failed to deliver. He promised that he had sought and received guarantees from Aer Lingus of a minimum 400,000 transatlantic passengers but failed to deliver. He promised that Shannon would share in the success of 22 new US destinations but failed to deliver. Above all else he promised a tourism and economic plan for the region but failed to deliver.

I ask Ministers and Government Deputies to join us. We have witnessed a great coming together of the entire west of Ireland over the last few weeks to fight this decision. It is now time for the west of Ireland to unite in this House. It is very simple, if they want to have the Aer Lingus decision to end the Shannon to Heathrow service reversed then they must join my colleagues and me, and vote with their feet. The Government spent enough money on consultants to ensure that the commitments given in the articles of association were not open to legal interpretation. Actions speak louder than words. Hiding behind legal advice as outlined in a reply to a parliamentary question I received this morning will not wash.

As I look across the floor I see Bertie's team. We are watching them and they will be remembered by the people of the west and mid-west for their actions here today. The choice is theirs. They should join us and save the west of Ireland.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

I propose to share my time with Deputy Tommy Broughan. Amendment No. 2 states:

To delete all words after "Dáil Éireann" and substitute the following:

"—conscious of the very serious implications for employment, business and tourism in the mid west and western regions of the decision of Aer Lingus to end its Shannon to Heathrow air service;

—noting the strong opposition to the move expressed by employers, trade unions and public representatives;

—recalling the commitments the Government gave prior to privatisation of Aer Lingus that it would take adequate steps to protect the state's key strategic interests and that in particular it would ensure sufficient services between the state airports and Heathrow to allow passengers connect throughout the course of the day with key long haul destination flights to and from Heathrow';

—calls on Aer Lingus to reverse its decision; and

—further calls on the Government to honour the commitments it gave to the Dáil and the public prior to privatisation of Aer Lingus and to take all appropriate steps to ensure that the Shannon-Heathrow Aer Lingus service is maintained, including, if necessary, the convening of an extraordinary general meeting of the company."

This is the first opportunity we have had to address this issue on the floor of the Dáil. I want, first, to pay tribute to all of the people from the west and the mid-west who came here yesterday to show their support for the Opposition and their clear determination to have a reversal of this decision, and to those who came again today and are in the Visitors Gallery.

In regard to the Minister's speech, the Government's extreme disappointment is of no use to those people. I have never heard such a mealy-mouthed, hypocritical, hand-wringing abdication of responsibility. The buck stops with the Minister. It is inconceivable that the Minister could have held a 25% share in the company and said what he said both when the announcement was made and in the House today. I speak also to the Deputies sitting behind the Minister and those who are not present. Those Deputies from the mid-west and the west fulminated on the airwaves. They fell over each other to get to the microphones and the representatives of the press who, incidentally, are not here today. They were lion-hearted leaders of their communities six weeks ago. I wonder what they will do today.

Where is my colleague the Minister for Defence, Deputy O'Dea, who could not wait to get back from his holidays to attack Dermot Mannion as a latter-day Cromwell, who could not wait to run down the steps here last night to defend his Taoiseach and his Government? Why is he not here standing up for his people?

Eamon Gilmore (Dún Laoghaire, Labour)
Link to this: Individually | In context

He is writing his article for the Sunday Independent.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

This is what gives politics a bad name. These people stood up in the west and the mid-west as proud as punch to represent their people. Today they stand behind the Minister for Transport and the Marine, Deputy Noel Dempsey. This is not acceptable. Government exists to do its duty.

I quote a former distinguished Member of this House, founder of the Progressive Democrats Party, Desmond O'Malley, who stated in a letter to The Irish Times:

I spent a good part of my political career seeking to encourage inward manufacturing investment. I had some success. . . .

The termination of services from Shannon to Heathrow will have its greatest effect in making it much more difficult to attract that kind of investment in the future. Apart from the loss of existing jobs, thousands of jobs that might have been created will not materialise. It will be impossible to quantify what might have happened. As a result, those who cause this situation will claim that they are not toblame. . . .

The Minister for Transport, among others, is espousing a version of company law with which I am not familiar. He seems to think that management is supreme, to the exclusion of all others. The Companies Acts envisage the board of directors as responsible for the actions of a company. The board in turn is answerable to the shareholders. The shareholders have the ultimate sanction of dismissing the board if they disagree with the company's policy.

Why retain a blocking minority if it is not going to be used to stop the very sort of thing that we were told it was kept for in the first place? President Sarkozy retained for the French state a blocking minority of shares in the recent merger of Suez and Gaz de France. Does anyone think he would refuse to use it in a similar situation to this?

I could not put it any better than the founder of the Progressive Democrats Party. I wonder how that party intends to vote today.

We were told that the Minister could use the word "lie" in the House. Was the statement of a former Minister a lie — I will not name the former Minister because I would not be allowed to use the word "lie" — when he stated that Heathrow Airport serves a unique role in ensuring connectivity to and from Ireland; that this connectivity is fundamental both to provide connections to and from Dublin as well as to and from the regions; and, that this is the reason for the mechanism providing for a possible consideration of slot disposals by extraordinary general meeting as set out in the articles of association of Aer Lingus Group plc.? The former Minister for the Environment, Heritage and Local Government, Deputy Cullen, said in the Dáil that the Government would retain a minimum stake of 25.1% in the company to protect the State's key strategic interests and to protect sufficient services between State airports and Heathrow to allow passengers connect through the course of the day with key long-haul destination flights to and from Heathrow. We want no less than that. We do not want any other kites flown regarding other airlines or other possibilities. We want to maintain the Shannon to Heathrow connection that the Government promised when it was privatising the airline. Assurances were given at that time that this was the reason a minimum stake of 25.1% was being retained by the State. The Government has reneged on that promise.

The Labour Party rightly opposed the privatisation of Aer Lingus. The chickens have come home to roost in that regard. Within less than a week of the announcement during the bank holiday weekend, the Labour Party tabled a motion in the Dáil on 13 August calling for the reversal of the decision and for the Government to take whatever action was necessary. Our leader, Deputy Eamon Gilmore, went to Shannon and met various groups shortly after taking up his position. A point made by him at that time was that if that decision had been made before the election, we could have been quite sure it would have been reversed. He is absolutely correct. Now they are hiding behind Deputy Dempsey as Minister. I hope the electorate in Clare, Limerick and other areas in the mid-west will learn a lesson from this and will not vote in large numbers for these people given what they have done.

I appeal to Members to support us and to collectively stand for the people of their regions to ensure connectivity is maintained. I will name those involved: Minister for Defence, Deputy O'Dea; Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív; Minister of State at the Department of the Environment, Heritage and Local Government, Deputy Killeen; Minister of State at the Department of Health and Children, Deputy Hoctor; Minister of State at the Department of Foreign Affairs, Deputy Michael Kitt; and, Deputies Peter Power, Dooley, Collins, Cregan, Grealish, Fahey, Treacy, Michael McGrath, Mansergh, Lowry, McEllistrim and Healy-Rae. Their collective voice could have been used to persuade the Government to ensure the decision was reversed. They did not do so.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

That is all it takes. These people can do it.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

They spoke as individuals on the airwaves; they never used their collective power, which is what we are asking them to do today.

I want to address a couple of other issues. The first relates to the transfer to Belfast in the first instance and the suggestion that this was a sensible decision from a company point of view. I understand some 175 seats have so far been sold on that route. Some 178 people in Shannon lost their jobs this morning. Let us compare those numbers. This is just the beginning.

Joe Costello (Dublin Central, Labour)
Link to this: Individually | In context

Shame on the Minister.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

Many people stood up on this issue including company directors and leaders of tourism. These are people who do not normally stick their heads above the parapet on these issues. They did so because they are genuinely concerned about job losses, their companies and the prosperity of the region. I will quote what one of them had to say: "This is not an inconvenience but a critical business and prosperity issue for the west and mid-west". It is not as the Minister says some form of exaggeration. This is a crucial issue for the strength of our region. It is an issue on which the Deputies opposite could have made a difference had they been willing to stand with us and to tell the Government they believed in what they said. Some of those Deputies are here today. Perhaps we will hear from some of them later what it is they propose to do.

A fundamental issue of political credibility arises when Deputies express support for an issue in their own region and do not support it in this Chamber. These people are denying their responsibility as public representatives for their regions. It is vital to people in the west and mid-west that this decision is reversed. I urge the Government to use its 25.4% shareholding at the proposed AGM or to convene an EGM, as the former Minister indicated it would, to ensure this decision is reversed. If it does not do so, Members will not be able to hold their heads high and say they care about the west and mid-west.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

I am delighted to have this opportunity, as Labour Party spokesperson on transport, to speak on this important motion and to stand with my colleagues from the west and mid-west, Deputies O'Sullivan and Higgins, who have led the campaign to protect Shannon Airport's Heathrow slots.

The Labour Party's position on this matter is clear and unequivocal: the Government as a 25.4% shareholder must convene an extraordinary general meeting to ensure Shannon Airport and the mid-west region does not lose the vital Heathrow slots which provide a gateway to the rest of the world for travellers and business people. Deputy O'Sullivan has rightly described the Heathrow slots as an essential part of Shannon Airport's connectivity with 350,000 people using the route annually and approximately 30% of passengers on the Shannon-Heathrow route connecting to further destinations worldwide.

Fianna Fáil Ministers have acknowledged the overwhelming importance of the Shannon-Heathrow slots to the region's connectivity and to job creation and industrial development in the mid-west. The Minister described as critical the maintenance of the Shannon Airport-Heathrow link. The Minister for Enterprise, Trade and Employment, Deputy Martin, stated that the capacity to attract additional jobs could be hampered by this decision. There is no fudging on this issue. This decision has a real impact. However, even with the recognition at the highest Government level that this important region's global connectivity and attractiveness for job creation will be critically affected, the Fianna Fáil-Green Party-Progressive Democrats Government is prepared to stand by and let this happen.

Nobody would disagree with the anodyne sentiments expressed in the Government motion but is it not pathetic for the Minister for Transport and the Marine, Deputy Dempsey, and his colleagues to ask Dáil Éireann to share the Government's deep disappointment at the Aer Lingus decision to end the Shannon-Heathrow service? After all, as a 25.4% shareholder, this Government is in a position to act to maintain this link. The Labour Party and I strongly believe that the decision to remove the Shannon-Heathrow slots is wrong and is bad for the mid-west, Ireland and our strategic national interests. The Minister should urgently call an EGM or take advantage of the proposed AGM to discuss this matter.

A key part of the Government's hypocrisy in pushing for the privatisation of a key State asset such as Aer Lingus is its ability to now state that decisions made by the company have nothing to do with it and that there is little it can do to reverse these decisions. However, did the Government not know all along and not care about the devastating impact on the mid-west or the possible knock-on effects for Heathrow slots allocated for other Irish airports including Cork and Dublin?

It is clear that the expansion project which included the re-allocation of the Heathrow slots was part of the business plan prepared for the flotation of Aer Lingus. The proposal to eliminate the Shannon-Heathrow slots and the development of a Heathrow connection for Belfast International Airport was clearly brought forward by the chief executive, Dermot Mannion, and his management team. At a succession of board meetings, the business plan for the flotation and the Belfast to Heathrow connection were strongly endorsed. Surely this implies the unanimous support of the board of Aer Lingus including the Government's representative, Mr. Francis Hackett.

It is scarcely credible that a profound business decision such as the removal of the Heathrow slots from Shannon could have been developed without the approval of the board under any model of good corporate governance. Those of us who have experience as directors of companies will know this is the case. The question then arises as to when the Minister and his colleagues first became aware of this plan. The question also arises as to how the Minister for Defence, Deputy O'Dea, following his statement on the loss of the slots for Shannon can remain in Government given the doctrine of collective Cabinet responsibility.

In 2006, the Labour Party transport spokesperson, Deputy Shortall, provided this House with a detailed and unambiguous critique of the Government's privatisation plans and set out the obvious threat to Ireland's regional and national strategic interests as a result of the privatisation of Aer Lingus. The Labour Party ploughed a very lonely furrow in that privatisation debate. We stood alone with the support of only a few Independents. We received no support from this side of the House except in the final vote. The Labour Party foresaw the Ryanair elephant coming down the tracks and foresaw what would happen to Shannon, Cork and Dublin.

The value of the Heathrow slots to our island nation and the potential danger to these slots if Aer Lingus was privatised was one of the major issues flagged by the Labour Party to the Taoiseach and former Minister for Transport, Deputy Cullen, during debates on privatisation. Unfortunately, those clear sighted warnings from Deputy Shortall and others were ignored and now appear to be coming to pass just a few short months following the privatisation of Aer Lingus. In preparing for the IPO the Fianna Fáil-Progressive Democrats Government paid a staggering €30 million for the advice of consultants and outside advisers. However, none of those advisers appears to have foreseen the problems which would arise within days in terms of the Ryanair takeover bid and the strategic regional interests of this country.

The former Minister for Transport, Deputy Cullen, told this House that arrangements had been made to safeguard the Heathrow slots by building them into the memorandum and articles of association. He went on at length about this, including in a debate which I had with him about the 30.4% and 25.4% shareholdings. He had the cheek to say in retrospect that he considered that four London-Heathrow services to and from Cork and four summer season and three winter season services to and from Shannon would each be critical to ensuring connectivity to those airports because that is the minimum necessary to ensure a spread of flights throughout the day.

Why are the Minister for Transport and the Marine, Deputy Dempsey, the Minister for Finance and the rest of their colleagues not demanding that an extraordinary general meeting be called? We have heard some slíbhín-type semantic manoeuvrings from various Ministers and Deputies that this is a mere slot transfer rather than a slot disposal and for this reason we cannot use the powers of the extraordinary general meeting. However, that is just a low and despicable attempt to avoid dealing with the Government's responsibility on the matter and its responsibility to the citizens of Shannon and the mid-west. Apart from the analysis provided by Deputy Shortall and the Labour Party on the effects of privatisation, the Oireachtas Joint Committee on Transport held protracted and comprehensive hearings on the proposed sale of Aer Lingus in May 2006. Repeated warnings issued about what would happen. For example, Dr. Aisling Reynolds-Feighan stated: "Aer Lingus is small and vulnerable to takeover in the event of it being privatised in a substantial fashion...It is vital the Government holds on to a significant shareholding to control its destiny in terms of air access to the country...If this requires periodic Government investment and is necessary to protect our strategic interests, so be it; that is what we must do". Deputies Dooley and Peter Power served on that committee and they agreed the committee's report, which I am quoting. Is it not arrant hypocrisy that Members can turn up today and vote against a report they agreed?

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

Do not anticipate their vote.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Heathrow Airport is an amazing, mighty global hub, with more than 67 million passengers passing through each year. Recent media reports in the UK state phase 1 of terminal 5 is set to come on stream in April 2008 with phase 2 following a few years later. The airport's capacity will, therefore, increase. Heathrow provides a vital aviation artery for Irish travellers and business people to connect to destinations all over the world. It is clear from the map presented by representatives of the Atlantic Connectivity Alliance yesterday afternoon that practically every region on the planet is served by the airport. For example, it caters for 85% of the UK's long haul flights. It is obvious why the Atlantic Connectivity Alliance and representatives of the Aer Lingus Shannon workforce who met Labour Parliamentary Party members yesterday are desperate to retain that link.

The famous Heathrow Airport slots are of enormous value to Ireland and they are the jewel in the crown of our aviation industry. It is ominous for both Aer Lingus and the country that the Government, as the company's major shareholder, is refusing to protect Shannon Airport. If it is Shannon Airport today, which airport will it be tomorrow? For example, it might be in the company's interest to transfer the slots to connect to Malaga, given the number of flights between London and Malaga, or to transfer them to long haul as a privatised commercial company.

I am in a unique position to fully understand the dilemma of Government Deputies from the west and mid-west. In the summer of 1994, there was a massive struggle to restructure Aer Lingus, which involved significant upheaval for the company's staff and their families. Fine Gael in Opposition tabled a motion that requested the immediate full financial support for the national airline. As soon as I read the motion at a finance committee meeting, I realised I could not oppose it, even though my party was in Government with Fianna Fáil. In so doing, I had to vote against the party and our great inspiring leader, Dick Spring. Later that evening, after a great deal of thought, the famous Northside Six, of whom I was one, walked down the Opposition gangway. I was behind my great north Dublin colleague, former Deputy, Sean Ryan, and I supported the Opposition's motion and suffered all the consequences. The next day all my gear was out in the front hall.

Deputies:

Hear, hear.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

The challenge for the Ministers for Defence and Community, Rural and Gaeltacht Affairs and Deputies Cregan, Dooley, Peter Power, Collins and others representing this critical region is to show the bottle I once had to show, walk the walk and defend the Shannon area and their own people. It is up to them now.

Eamon Gilmore (Dún Laoghaire, Labour)
Link to this: Individually | In context

They should stand with their people.

Tony Killeen (Clare, Fianna Fail)
Link to this: Individually | In context

I wish to share time with Deputy Dooley.

I am tempted by Deputy Broughan's contribution to follow the same line because his experience is not entirely unique and I am envious of him because, unlike me, he did not go through the Opposition lobbies on his own. I will resist the temptation to remind him and others of the wonderful rhetoric of Opposition Members who did the exact opposite when they were in Government. However, it is more important to acknowledge, in voting on such a motion, the impact on policy and that the difficulties that will beset the business and hotel and tourism community and the airport workers will not be moved forward one whit by such political posturing.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

The Minister of State should change his car.

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

He should get connected to London.

Michael Woods (Dublin North East, Fianna Fail)
Link to this: Individually | In context

The Minister of State without interruption, please.

Tony Killeen (Clare, Fianna Fail)
Link to this: Individually | In context

Unlike the hypocrites in Opposition, I can say that having done it. I know what I am talking about it.

I would like to set out the position and deal with the realities. The Minister has set out the legal position and nobody has put up an argument to undermine that. However, important issues are outstanding. The briefings of the chief executive officer of Aer Lingus regarding industrial relations in the company set the background for the decision and raise serious issues that cannot be avoided and must be grappled with in the future. Depending on how that plays out, major issues must be addressed. The question of what we believed the blocking minority shareholding would achieve must be dealt with in the medium term by those who gave legal and other advice. However, today it does not advance the case to restore connectivity.

I want to concentrate on how to address that. Representatives of Aer Lingus management say it has made a commercial decision and even if they are not open to questioning on the basis of the ownership of a share of an airline, they are open to questioning on this commercial decision. They have laid out a number of factors in private and public briefings, one of which is airport charges. That difficulty and the ill-feeling over Ryanair's deal with Shannon Airport is addressed in the offer set out by the airport authority at Shannon and, therefore, one of the legs underpinning the company's commercial decision is no more. They also say their costs in Shannon are 50% higher than in Dublin or elsewhere. A process is provided under social partnership involving the Labour Court and the Labour Relations Commission to address such issues. Aer Lingus managers did not take this route but they must do so quickly. They claim they can achieve better load factors and fares in Belfast. The evidence of bookings to date suggests strongly that will not be the case and if this transpires to be so, Aer Lingus management has a case to answer on commercial grounds. They must address this on behalf of various shareholders, including the Government. They cite reducing loads in Shannon Airport and that was borne out by the request by British Midlands for support from the business community. Perhaps the business community could do something to indicate its support for a service at Shannon Airport.

I acknowledge the issues raised by the Minister in his contribution about acquiring additional slots and the legal difficulties involved but I ask him to examine them further because they can be so examined. Aer Lingus management must address its treatment of 350,000 passengers. No more than any other company, it has a corporate responsibility for which it is answerable and if it does not do so, it must be brought to account for it. Enormous damage had been done to the company's brand through the plan management has set out.

As I have stated repeatedly when addressing this matter, connectivity is important and it can be achieved ideally by having Aer Lingus acknowledge it has made a mistaken decision——

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

That is the only way.

Tony Killeen (Clare, Fianna Fail)
Link to this: Individually | In context

——and it has slots it will not fill in Belfast. The charade of this debate will not advance that one whit.

Deputies:

This is not a charade.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

The Minister of State can connect with the Government jet but the people cannot.

Tony Killeen (Clare, Fianna Fail)
Link to this: Individually | In context

I remind Aer Lingus management that this is a Government motion setting out what the Government as a shareholder thinks, which is an important issue to address.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

The Government should have used Private Members' time.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

I welcome the opportunity to debate this issue. I condemn in the strongest possible way the actions of Aer Lingus to terminate the Shannon-Heathrow service. The decision has serious implications and it will have a significant impact on tourism, business and other commercial activity in the region. It is important to question the commercial sense of this decision when one considers that it is a profitable route with in excess of 350,000 passengers using it.

I also question the clandestine nature of the way Aer Lingus announced the decision. That approach has no place in today's partnership approach to doing business. There is certainly a lack of consultation with the workers, the airport authorities and the Government.

The Aer Lingus management decision has damaged extensively the brand Aer Lingus. It has damaged the region through adverse publicity, both nationally and internationally. The commercial reality Aer Lingus management has attempted to use is not credible. Aer Lingus has not made any effort to address profitability at Shannon or to address what they have said is a very significant cost base.

It beggars belief why Aer Lingus ended the third-party handling at the airport in recent times. It was a very fruitful source of extra income. Aer Lingus made no effort to grow the business out of the airport in recent years and has virtually ignored the airport. It has announced no new routes. The management of Aer Lingus has a commercial responsibility to sweat the asset that is Shannon Airport before it takes the decision to move to another base.

Aer Lingus workers have yet again been ignored by the management of Aer Lingus. These people have compromised and have demonstrated the capacity to compromise in the past through the various restructuring plans, including the Cahill plan. Aer Lingus has clearly made a bad commercial decision, one which will ultimately prove to be a rock on which the management perishes.

This debate is about connectivity for the west and mid-west. We are all well aware that connectivity is vital for the successful business operations in the region and it is critical for access to global markets and to sustain the level of wealth creation that has taken place throughout the mid-west. It should allow companies to progress along their growth cycle.

Business leaders have spoken out in a very clear and unambiguous way, particularly those from the sectors most affected. They have spoken of the difficulty it will create for them in getting future investment. Development agencies have described difficulties in getting new greenfield investment and more importantly, many of the people in the companies who are trying to progress from being a manufacturing to a more highly skilled based workforce have indicated it will pose significant difficulties for them.

Aer Lingus has followed an agenda often associated with east-coast thinking, where the notion is of one central hub in Ireland with other airports acting on a spoke off it. That is unacceptable to any of us, especially those of us representing the west or mid-west. We have the second-largest concentration of industry outside Dublin and we need direct access through Heathrow to international destinations.

I welcome the clear statement in today's motion, particularly that the Government supports the connectivity between Shannon and London-Heathrow. I know this was affirmed through a statement from the Cabinet meeting of 29 August, which endorsed this commitment.

Deirdre Clune (Cork South Central, Fine Gael)
Link to this: Individually | In context

There is no connectivity.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

My preferred option would be for Aer Lingus to continue to provide the service it has given.

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

How will the Deputy vote?

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Allow Deputy Dooley to continue, without interruption.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

The Minister has outlined the difficulties and the associated mechanism. It has to be done on commercial grounds. My colleague, the Minister of State, Deputy Killeen, has already outlined the commercial reality and Aer Lingus management must focus on that.

We must provide a commercial platform for Aer Lingus and other carriers. This will need Government intervention.

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

The Deputy should tell us how he will vote.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

I am confident that will be forthcoming from the Minister.

The Shannon Airport Authority recently announced a new routes scheme that puts forward a solution for Aer Lingus, or perhaps another carrier. My preferred option would be Aer Lingus. I encourage the Government to look at further measures, including the establishment of a route development fund, like those used in other European countries such as Scotland, Malta and Italy, to support the development of new routes.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

It is too late.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

I recognise work is being done to find an interim solution but we must look to the future and the acquisition of slots at Heathrow which will be controlled by the region to guarantee connectivity. It is incumbent on us to do so. This issue is about connectivity and access to the world for the people of the mid-west and west. It is about quality of life and sustainability of living outside of Dublin.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

It is about taking responsibility.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

I understand Deputy Joe Carey wishes to share time with several other Members with the consent of the House.

Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context

I wish to share time with Deputy Neville.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Is that agreed? Agreed.

Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context

I firmly support the Fine Gael amendment. The people of Clare, the mid-west and the entire western seaboard are angry because their livelihood is under threat and because this Government has allowed Aer Lingus walk away from the Shannon Heathrow slots. It is clear the Minister, Deputy Noel Dempsey, does not understand the problems being encountered in the Shannon area, especially when he described our protests as a whinge.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I never did.

Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context

He did. I heard him.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

He called them blatant liars.

Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context

The Minister called us whingers.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I did not. The Deputy is not allowed to mislead the House.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

The Minister misled us. He called them all blatant liars.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

The Minister has been misleading the electorate.

Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context

The protests are being led by key business people in the mid-west area. They are not whingers. They provide much-needed employment and the Shannon Heathrow slots provide a connectivity that holds together business in County Clare and other counties throughout the mid-west and western seaboard. Heathrow is the west's biggest gateway to the global economy as it provides access to 200 destinations throughout the world.

Taking the Shannon Heathrow slots away will remove one-stop access to 46 destinations. Companies affected include Element Six, formerly known as De Beers, which takes up 2,200 seats on the Shannon-Heathrow route every year, with 1,000 for customers and 1,200 for staff. This company is committed to Shannon. It has made a major contribution to the mid-west economy over the past 40 years, since it began with its manufacturing facility. It has progressed to providing high-end jobs in IT, finance and other activities.

That company did not have to locate in Shannon. It could have been positioned other than in Ireland but because of the available connectivity, it decided to stay in Shannon. The company made it through the 1970s and 1980s but in 2007 there are many jobs at risk in the company. An announcement today indicates that 178 jobs in Tyco in Shannon are at risk. We may have lost another manufacturing company. The decision by Aer Lingus coupled with the Government's reluctance to intervene has caused this devastation.

The decision will also affect tourism. I recently spoke to John Madden, the managing director of the Temple Gate Hotel. He knows a group of golfers who come to Ireland on a yearly basis, spending in the region of €150,000. When the Aer Lingus decision was made he was told by phone that the group would go to Spain or France instead because the connectivity was no longer there. That is just one example of how tourism is being affected.

Prior to the IPO, the Heathrow services to Dublin, Cork, and Shannon were specifically identified as being of key strategic importance. This position was stated and restated by the Government and on the Aer Lingus website. The Government stated it would intervene if these slots were threatened. Where is this intervention and where is the extraordinary general meeting? Why has the Government deliberately misled the people?

Possibly the most disappointing aspect of this debacle is the misinformation, spin and economy with the truth on the part of this Government. When the Aer Lingus CEO was asked if the Government knew in advance of this decision, his answer was silence. The Government clearly knew of this decision well in advance.

I appeal to those thinking of voting with the Government to support our amendment. They have a chance to save these slots which will provide connectivity to Shannon. I appeal to those Deputies to join with us to change the decision. It is in their hands.

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

I welcome the opportunity to contribute to this debate. I congratulate the Atlantic Connectivity Alliance on their work and the research and information on this being provided not only to public representatives but to the public in general. With the exception of the excellent chairman who is a member of the Minister's party and doing outstanding work to persuade him to change his view on this matter, those involved have no involvement in politics.

I wish to deal with the issue of tourism because it is important to my constituency. I live near Adare which depends heavily on tourism and has three excellent hotels, namely, the Dunraven Arms, Adare Manor Hotel and Fitzgerald's Woodland House Hotel. Rathkeale House Hotel is also situated nearby. These hotels will be severely affected by the Aer Lingus decision which the Minister refused to challenge. That decision will have a major impact on the tourism product in the county and, in particular, west Limerick.

According to Tourism Ireland, 27% of North American visitors to Ireland arrive by air from the United Kingdom. This figure includes those who come via London Heathrow. The United Kingdom, with London Heathrow, is a primary hub and remains an important entry point for US visitors to Ireland. Hoteliers in the west have prepared initial estimates which indicate that there would be a loss of €8.5 million in revenue if the decision to end the London Heathrow-Shannon connection proceeds. An estimated 233 jobs would also be lost at west of Ireland hotels. The management at Dromoland Castle indicated yesterday that it would definitely be laying people off when this connection was severed.

Capital investment projects worth a total of €113.5 million are on hold in the tourism sector as a result of uncertainty regarding flights to Heathrow. These projects have the potential to lead to the creation of 379 jobs in the west and mid-west but these will be lost if Aer Lingus proceeds with its plans. There will be a reduction of up to 10% in the number of North American visitors to the Shannon region as a result of the discontinuation of the Shannon-Heathrow air service.

Aughinish Alumina in my constituency avails of 500 round trips through Heathrow Airport, of which a total of 150 relate to employee usage, while the other 350 are designated for inward visits from customers and headquarters personnel. These flights are routed into Shannon via Heathrow. The Aughinish-Askeaton site is designated for demonstration purposes and headquarters operate from it. A centre of excellence is also located at the site. Just two weeks ago, 12 bankers from the United Kingdom flew into the area via Heathrow. In the first week in September 25 international journalists were flown in via the same airport. Heathrow access is, therefore, critical to Aughinish Alumina's demonstration site activities. I remind the Minister that there are 600 employees on site and that, in total, Aughinish Alumina employs in the region of 1,000 people. Neither he nor the Government were concerned with regard to the loss of almost 1,000 jobs at Castlemahon or Kantoher. I ask him to be concerned about the jobs that are going to be lost in the tourism and business sectors in the constituency of Limerick West.

Deputies Collins and Cregan have an opportunity to express themselves and inform their colleagues that they must change their minds on this matter. Deputy Collins spoke on radio and television and vigorously promoted what we are trying to do. We ask him to do so again.

The statement that the Government has a commitment to and an interest in the mid-west and the west is just a blatant lie.

Peter Power (Limerick East, Fianna Fail)
Link to this: Individually | In context

I wish to share time with Deputy Cregan.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Is that agreed? Agreed.

Peter Power (Limerick East, Fianna Fail)
Link to this: Individually | In context

I welcome the opportunity to speak to the Government's motion on the provision of air connectivity between Shannon and London Heathrow Airport. It is unfortunate that additional time could not be allocated for this debate. However, in the brief time available, I wish to make a number of points.

Rarely, if ever, has a decision by a private company attracted such sustained public criticism from the Government, public bodies, politicians from all parties and, most importantly, the public. The total opposition to this decision was evident yesterday in the form of the large turnout of workers from the area, people who are at the coalface and rightly concerned about it. History will show this to be a flawed decision by a flawed management at Aer Lingus. Far from improving its situation, this flawed decision has done long-term damage to the airline, for which management must bear responsibility. Some of Aer Lingus's key assets are its name, brand strength and customer loyalty. In an ill-conceived and commercially suspect decision, more damage has been done to that asset than could ever be gained by abandoning its loyal customer base, particularly as it relates to business customers, in Limerick and the mid-west. In addition, the underhand manner in which management sought to time the publication of the announcement was an act of pure cowardice. The fact that management did not even seek board approval for what has turned out to be a critical decision which has major implications for the airline raises serious questions about those in management.

Much comment has been made in the media and elsewhere with regard to whether the potential fallout for the Shannon region has been exaggerated. On the whole, it has not been exaggerated. On the contrary — I am reluctant to say so — substantial damage has already been done to the region arising from the adverse publicity generated by this controversy.

I take this opportunity to record my appreciation of the Atlantic Connectivity Alliance which has played an enormous role in preparing a comprehensive, credible and reasoned business case for the retention of Shannon-Heathrow connectivity. Anybody who has spoken to the managers and chief executives of significant businesses in the mid-west can be in no doubt whatsoever about the serious impact this decision will have. Like many in the House, I have spoken to dozens of managers who employ hundreds of people. Their views must be taken seriously.

The early indications are that the take-up on the proposed new Aer Lingus Belfast route is very poor. Figures I obtained yesterday indicate that of the 18,762 seats offered by Aer Lingus, a grand total of 104 have been taken up. That is less than one seat per flight. Even at this stage these figures show a remarkably slow uptake in contrast to a proven, sustained demand from Shannon. This alone should prompt Aer Lingus to re-evaluate its decision. The management of Aer Lingus claims to have made the decision on purely commercial grounds. If that was the case, there is now an onus on it to reassess its position. The Atlantic Connectivity Alliance has made a very persuasive case that the Shannon-Heathrow link would be more profitable than the Belfast one.

In the light of the poor uptake on seats on the new Belfast route, there is one obvious solution, namely, Aer Lingus should concentrate its sales on one slot only, redeploy two of its slots to a proven profitable route from Shannon and take one additional route from elsewhere. In this regard, I refer to the motion before the Dáil and, in particular, the Government's endorsement of the Shannon Airport Authority's efforts to secure enhanced air access from Shannon to London Heathrow. At the time of the passage of the State airports legislation I made it clear that the performance of the new Shannon Airport Authority would be monitored closely and regularly and that it was just as important to constantly review its incentive packages to existing airlines as well as developing new ones. I note with interest a new package and incentive scheme launched by the Shannon Airport Authority on 12 September. It would be prudent to await the outcome of expressions of interest in this package. Was such a scheme considered before Aer Lingus made its decision?

There are a number of other points I wish to make but I do not have time to do so. I indicated at the outset of this controversy that it was my belief that this situation would not be resolved overnight. Accordingly, I await with acute interest——

Peter Power (Limerick East, Fianna Fail)
Link to this: Individually | In context

——the efforts of the Shannon Airport Authority to rectify the situation.

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

What about the EGM?

Peter Power (Limerick East, Fianna Fail)
Link to this: Individually | In context

At that stage we will have a further opportunity to address this issue. In the meantime, I will continue to do everything in my power——

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

The Deputy has no power.

Peter Power (Limerick East, Fianna Fail)
Link to this: Individually | In context

——to support and work with the Atlantic Connectivity Alliance's campaign.

John Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

I welcome the opportunity to contribute to this important debate which relates to the restoration of connectivity between Shannon and Heathrow.

In August Aer Lingus dealt a devastating blow to the mid-west region. As a region, we were playing in the Premiership, but following the blow dealt by Aer Lingus, we are now in division one. That is hardly good enough for a region that has been built up over many years on the premise that there would be connectivity with Shannon Airport. It was an area in which people were prepared to invest very heavily but this has now been taken from us and I fear that not alone will we lose jobs in industry and tourism, we will also not be as attractive as other regions when it comes to attracting additional inward investment. I give credit to successive Governments which have supported Shannon Airport and the Shannon region and made it what it is, namely, a region of which we are all very proud. Everybody would agree with this.

The timing of the decision by Aer Lingus was despicable and appalling. We were all caught off guard. It was taken without consultation with the staff, in particular, and Aer Lingus's own board. It is very strange that a company could take such a decision unilaterally without consultation with its own board, which I find very difficult to understand.

I set out my position clearly a number of weeks ago, reiterated it last week and will probably do so again today. I do not need to be lectured by anybody inside or outside the House as to how I should speak or defend the people of Limerick West for whom I have spoken and worked since 1991. I will let them judge me when judgment day comes around for me.

Even though I am grateful for the Opposition's promptings, I am happy to support the Government based on what I have heard and been told at numerous meetings with the Taoiseach, the Minister and other senior Ministers. The Minister outlined clearly to all concerned the reason the Government cannot intervene. It has been given in a legal opinion by the Attorney General and I challenge any member of the Opposition to contradict it.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Deputy Cregan to continue without interruption.

John Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

Nobody has contradicted that legal opinion or given another. It has been set out clearly. The alternative is to encourage and support another airline to fill the vacant slots, which I know the Government has been doing in consultation with the board of Shannon Airport. Perhaps I am missing something but to be honest I cannot see any other alternative at this time.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Deputy Cregan to continue without interruption.

John Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

I genuinely do not know why Aer Lingus has decided to leave Shannon Airport overnight. We are told it was a commercial route——

John Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

Absolutely. I wonder why Aer Lingus decided to do this. At a meeting in a hotel at Shannon Airport held a few days after this decision was taken and attended by a huge number of people, including respected business people and trade union representatives I was amazed to hear the statement that during the course of a board meeting that morning that a figure of €4.5 million was found for the route. With all due respect, the horse had bolted.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

It has not bolted.

John Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

Was that part of the reason? I do not know. I am also extremely concerned about Aer Lingus's commitment to Shannon Airport in respect of its long-haul routes.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

It only filled one of the three slots.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Deputy Cregan to continue without interruption.

John Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

I am also concerned about Michael O'Leary and Ryanair trying to profit from the people of the mid-west for their own benefit. I want to see slots reserved for Shannon Airport but I also want to see Aer Lingus remain competitive. I am supporting the motion based on what I have been told by the Taoiseach and the Minister, that every effort is being and will be made to solve this problem.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

I understand Deputy Coonan wishes to share his time.

Noel Coonan (Tipperary North, Fine Gael)
Link to this: Individually | In context

I congratulate the Ceann Comhairle and wish him well on his appointment. I wish to share my time with Deputies Clune and Tom Hayes.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Deputy Coonan has four minutes, while Deputies Clune and Hayes will have three minutes each.

Noel Coonan (Tipperary North, Fine Gael)
Link to this: Individually | In context

I thought the Ceann Comhairle might give us three and a half or four minutes each.

Tipperary North is not as close to Shannon as the areas represented by my colleagues and other speakers. However, Shannon Airport has been a major driver of economic growth in north Tipperary. Many of my constituents and their families gain meaningful employment in the Shannon region. Therefore, this is a vital decision for them. With one fell swoop, it can wipe out all of this growth.

It was with a degree of disillusionment that I listened to the Minister's speech. I have never heard anything like his smart-aleck remarks or witnessed anything like his abrasive attitude towards the Opposition and, in particular, the Atlantic Connectivity Alliance, which I am here to support. Either the Minister is out of touch or he has not been listening to what it has been saying to him. The most senior international and regional executives from companies in the region have warned the Minister and the Government that there will be serious job losses in tourism — the figures indicate a 25% drop in bookings for 2008 — manufacturing and services. This has been made quite clear to the Minister, yet he says it has been exaggerated. That is a blatant lie. I was always told that this was unparliamentary language but that is the allegation laid against the Atlantic Connectivity Alliance by the Minister. I have heard no statements on this side of the House other than those agreed with the alliance.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

On a point of order, I do not know whether the Deputy was in the Chamber at the time but he is now telling a lie about what was said.

Noel Coonan (Tipperary North, Fine Gael)
Link to this: Individually | In context

I was not telling a lie.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

The Minister must withdraw the word "lie". We cannot allow such a word to be used.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

It was an untruth. I never made the statement referred to by the Deputy.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

The Minister has withdrawn the word. He said he never made the statement. Deputy Coonan may proceed.

Noel Coonan (Tipperary North, Fine Gael)
Link to this: Individually | In context

It is in writing. It is in his script.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Deputy should read it. He should read the entire paragraph.

Noel Coonan (Tipperary North, Fine Gael)
Link to this: Individually | In context

This is a blatant lie.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Deputy should read the entire paragraph.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Deputy Coonan must be allowed to proceed without interruption.

Noel Coonan (Tipperary North, Fine Gael)
Link to this: Individually | In context

Not only am I concerned about that matter, I am also concerned about the negative impact of the decision made. The perception is that Aer Lingus is the national carrier and provides a degree of security for Shannon Airport and that, therefore, industrialists invest in the Shannon region. This decision means that not only has the planned expansion of existing businesses been put on hold, but future investment is also being lost to the region, which is very serious.

I am supporting the amendment moved by my colleague and the Atlantic Connectivity Alliance. The Minister should return to the real world, take a firm grip and deal with the matter and forget about his smart-aleck remarks and change his attitude towards this side of the House. When he referred to my party, he was referring to me. I was never like that with him. I always had the highest respect for him.

Deirdre Clune (Cork South Central, Fine Gael)
Link to this: Individually | In context

This debate is about regionalisation and ensuring the implementation of regional policy. I note the Government's commitment to its spatial strategy, which it has stated here today. If the decision of Aer Lingus stands, and judging from the Minister's speech it looks like he will not make any effort to stop it, after next January there will be 33 flights to Heathrow from the north east corner of this island and five from the south west. This does not reflect regional policy and a commitment to ensuring there is investment in the regions.

In his speech, the Minister outlined how Heathrow is so important for connections to the Middle East, Asia and Africa. Without that vital connection, one will not attract investment into regions. We have heard that from the Atlantic Connectivity Alliance, which has briefed us all extremely well in the past number of days in Leinster House. The slots to Heathrow are very important. I am sure they are very important to Aer Lingus but more important to us as an island nation are the connections from Cork, Shannon and Dublin to Heathrow. I was extremely disillusioned today when I heard the Minister acknowledge that it is critical to retain connectivity and wish Shannon Airport Authority well in its quest to ensure connectivity to Heathrow. The Minister knows that with the Open Skies policy the Heathrow slots will become more valuable to Aer Lingus. Who is to prevent it from serving Washington or southern Spain with these slots? There is nothing to ensure the Heathrow slots for Shannon, Cork and Dublin airports will be retained. While the Government retained 25.4% ownership of Aer Lingus to protect those slots, I question the information available to the Government at the time of privatisation. I have reservations about the Government's aviation policy. A mess has already been created at Cork and Shannon airports. A promise was made that Cork Airport would maintain a debt-free and independent status which has not happened. Another promise on maintaining flight connectivity in the regions has also not been fulfilled. Will the Minister, as advised by Deputy O'Dowd, examine the public service obligation to ensure flight connections for the regions are maintained by Aer Lingus and regional development can happen?

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context

I entered public life 16 years ago and have attended many meetings regarding health care, schools, closure of hospitals and siting of incinerators. However, at the meeting I attended in Shannon this summer I never saw such anger and frustration from representative groups and those workers whose jobs depend on the future of Shannon Airport. From the Minister's speech it is obvious he is not connected to how the people of the Shannon region feel on this matter.

The Aer Lingus decision also affects south County Tipperary where many people are annoyed by it. This link has been in place since Shannon Airport was established. If the former Taoiseach, Seán Lemass, were alive today, he would be supporting this side of the House and would not be happy with the Minister's speech on this motion.

Three courses of action are open to the Minister. I am at a loss as to why the vacancies on the Aer Lingus board of directors have not been filled. Two directors should be appointed to the board by the Minister, as demanded by this side of the House and Aer Lingus workers. If he did that, he would be applauded by all involved.

After making these appointments, an EGM should be called to make a decision on the Heathrow service from Shannon Airport. That is the proper way to do business but the Minister is allowing the situation, that has not changed since his meeting in Shannon, to continue. There has been plenty of media coverage but still nothing has happened. Representative groups from the Shannon area attending in the Visitors Gallery are amazed this situation has been allowed to continue. It is up to the Minister and Government backbenchers to make those appointments and make the change which will affect generations in the region.

Niall Collins (Limerick West, Fianna Fail)
Link to this: Individually | In context

As this is my first occasion to speak in the Dáil, I wish the Ceann Comhairle well in his appointment. I wish to share time with Deputies Beverley Flynn and Michael Lowry.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Is that agreed? Agreed.

Niall Collins (Limerick West, Fianna Fail)
Link to this: Individually | In context

Since 2004, when I entered public life as a member of Limerick County Council, this has been the largest issue I have faced. Since the news broke of the decision by Aer Lingus to move the Shannon-Heathrow slots to Belfast, public concern has been overwhelming. I condemn this decision, in particular the unprofessional way in which Aer Lingus management handed it down. Much legislation is in place to protect employees with various workplace respect and dignity polices, none of which was adhered to in this case. Aer Lingus staff were treated shabbily through the selective leaking over a bank holiday weekend of a major decision affecting them. The mid-west and west have received much adverse publicity as a result of this decision. These regions face significant competitiveness issues in attracting inward foreign direct investment. The mid-west region is on the periphery of the island of Ireland, which itself is on the periphery of Europe.

I was one of the first to call on the Government to use its shareholding in Aer Lingus to discuss this decision. On foot of this, the Minister explored it and he has given his reasons for the course of action he will take. I will use my position in the Fianna Fáil Party to continue to find a solution to maintain connectivity. Those whose jobs will be affected by this Aer Lingus decision want a solution to be found.

I pay tribute to the Atlantic Connectivity Alliance and business leaders in the region. Business leaders do not normally court publicity but have come out to make a case for maintaining the Heathrow connection. I have taken part in media debates with Members from other political parties where the charge was made that people in the mid-west were overstating the case. I received correspondence from a director in Aughinish Alumina who stated:

. . . the Shannon/Heathrow route is critical as we sell our product into a global international market. Gaining and maintaining customers in an extremely competitive marketplace is a constant business challenge for us. Customer visits to the plant and key plant personnel visits to customers is fundamental to maintaining our customer base. If customers cannot visit easily, personal contact will be lost and will result in the loss of contracts. Similarly, if we cannot have direct access to our customers, then we will be at a significant disadvantage versus our competitors.

Under no circumstances was the case for maintaining the route exaggerated by anyone in the mid-west region. We must continue working to find a solution. I have also received similar correspondence from the executive managing director, Dr. Helmut Koehler, of Olympus, a Clare-based company. He stated:

I should also like to thank you for the Irish Government and the Irish Industrial Development Authority support for our Irish facility to date. We sincerely wish to see the continued development of this facility, however for this to be fulfilled there must be good connectivity.

We must all work together to maintain route connectivity for Shannon Airport.

Beverley Flynn (Mayo, Independent)
Link to this: Individually | In context

I am annoyed that the motions before the House only refer to the mid-west, south-west and north-west regional airports and ignore the west's regional airport in Knock. I would have expected the Opposition to have picked up on that omission.

There is little doubt that the loss of the Shannon-Heathrow link is a major setback to business and tourism in the mid-west. A region that depended so much on its air access to the wider world will be deprived of the main plank of its success to date unless corrective action is taken. This is something that we cannot and will not allow to happen. Such a situation would further emphasise the regional imbalance between the east and the west about which I have spoken many times in this House. However, this debate provides us with an opportunity to broaden the issue and to look at the threat to air access in a wider context.

Companies in the Shannon basin need connectivity for their survival. Nobody disputes that for a moment. However, there are scores of manufacturing companies from Donegal to Sligo, Mayo to Galway which are equally in need of connectivity if they are to survive, perhaps even more so because of the totally inadequate road system which is playing havoc with transport costs. Companies such as Abbott and Hollister in my constituency, Allergen which last year celebrated 30 years in Westport, Baxter, Coca-Cola and many more are struggling with transport costs which could be greatly alleviated with proper air access. Balanced regional development must mean balanced regional air access. The western half of the country needs direct connection to the UK and Europe, key European hubs and transatlantic services. Best of all, we have the airports to sustain a truly integrated cohesive air policy for the west. In Knock, Shannon and Cork there are three airports with the capacity and resources to really drive regional development. More than 1 million people live within a 90 minute drive of each of these airports. Surely this means that the essential framework is already in place for an air access policy which can transform the west of Ireland. The rules for national policy must be on an all-Ireland basis if we are to overcome this particular setback and attain a sustainable foundation.

There are 31 flights to Heathrow from the east coast of Ireland, including Northern Ireland and Dublin, and 58 to other London airports. From the entire west coast, south-west, mid-west, west and north-west there is a combined total of five flights to Heathrow — that is after Aer Lingus withdraws from Shannon — and 16 to other London airports. It is important to point out that any attempt by Government to interfere in the market for any one region will distort the market for another. Knock is at present in commercial discussions with airlines regarding London links, including Heathrow. Any public or political intervention must aim at creating a level playing field for all of the west. This is not just a mid-west problem and its resolution does not have ramifications for that region alone.

Michael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

The decision by Aer Lingus to discontinue its Shannon-Heathrow service without an adequate replacement will be a devastating blow to business and tourism in the mid-west region. Countless jobs, a myriad of industries and tourism in the region are dependent on a vibrant Shannon Airport. Aer Lingus knows a Shannon-Heathrow route is viable, but sees a more lucrative opportunity in moving the coveted Heathrow slots to Belfast. This is a desperately cynical move by a company that holds itself up as the national airline.

The Aer Lingus decision is a selfish vested interest approach. It shows no regard for the consequences and the impact on a dedicated workforce and a supportive industrial and commercial base. It is a decision that shows contempt for the loyalty of the public in the mid-west region. Heathrow is our closest gateway to the global economy, giving the mid-west region one-stop connectivity with over 200 destinations across the globe. Renewal or replacement of the Heathrow slots is imperative to ensure that the mid-west is not saddled with a major disadvantage in a world where international connectivity is a crucial element in gaining economic advantage. It is crucial that the current negotiations to restore connectivity to Heathrow are successful.

In the Shannon region we have advanced internal infrastructure and telecommunications. We have one of the most productive, skilled and educated workforces in the world. We must ensure that international companies can access them and that domestic enterprises can effectively export the produce of their collective talents. Management of Aer Lingus has publicly stated its position in trenchant terms. It is blatantly dismissive of reasoned logical argument against its position and is openly confrontational.

Even if the Government were successful in calling an extraordinary general meeting, it is the advice of the Attorney General, I understand, that the board of Aer Lingus would not be bound to follow any resolutions seeking to reverse its business decisions. In these legal circumstances it is clear that any attempt to overturn the decision would be fraught with legalities leading to protracted contentious and divisive proceedings, the negativity of which would ultimately damage the future of Shannon and the region. As Deputy Róisín Shortall pointed out in the privatisation debate that took place in the House last year, it is also likely that the European Commission would rule against the Government exercising a so-called controlling share in such a manner.

I fear that forcing the board of Aer Lingus to reverse its decision could be a futile exercise. The company will not embrace a forced decision with the necessary enthusiasm of commitment to ensure its success. A decision in such circumstances would gradually be undermined by the management of Aer Lingus.

Arising from this debate and the obvious cross-party concern that exists, it is to be hoped that Aer Lingus will accept the error of its decision and willingly review its stance, agree to renew the route and actively promote activity between Shannon and Heathrow. If Aer Lingus fails to respond positively we should provide the conditions and incentives to guarantee an immediate replacement carrier. International connectivity to the Shannon region is not optional. It is an absolute necessity.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

I wish to share time with Deputy Martin Ferris, if that is agreeable.

Having been in this House for just over two decades and in the Seanad for almost a decade, I cannot recall a motion quite so weak as the one before us. The opening paragraph of the motion to the effect that Dáil Éireann is called on to share the Government's deep disappointment at the Aer Lingus decision to end the Shannon-London Heathrow service stops just short of asking us to have a weep-in for the destruction being visited on the region. The Minister's speech is seriously contestable in a number of fundamental points of fact on the issue. He cites page 20 of the report of the senior officials:

Disposal of slots relates specifically to the sale of slots and/or the transfer of slots between airlines and does not apply to the reallocation of slot pairs to new or existing bases.

I repeat it is most contestable and is a very limited reading of what is, in fact, in the memorandum and articles of association. The Minister continued:

However, let me be clear, the Government's legal advice is that, having regard to the duties of the Board of Directors pursuant to the Companies Acts and the Memorandum and Articles of Association of Aer Lingus, shareholders do not have the power to overrule management decisions on business matters.

This is a meaningless statement and largely untrue. There is nothing in the Companies Acts that suggests the management has a type of carte blanche that is accountable neither to the board or to shareholders. Contradictions riddle the Minister's speech. He mentions two key objectives of the State's shareholding — providing a major block to a hostile takeover by enabling the State to prevent a compulsory takeover of 100%; and enabling Government to protect the memorandum and articles of association of the company. How can the Minister be protecting the memorandum and articles of association of the company when disposal is defined there as including the transfer of slots?

I want to put a more fundamental case in this regard. These slots are not in the absolute ownership of Aer Lingus. In the debate in the House of Commons in 2003-04 on the reorganisation of services at Heathrow, it was decided that one could not conclude fundamentally that the slots were in the possession of the airlines in question. The basis for my assertion is that the original slots were negotiated at intergovernmental talks.

The same type of retreat from responsibility is contained in the flat negatives in relation to regionalism in the Minister's regional policy. Connectivity is important for the entire economy. This is not a case of the west versus the rest. It is a question of ensuring the equal rights of regions to be developed and even national development. "Connectivity" is described in the memorandum and articles of association. In the case of Dublin Airport, it is described in terms of not exceeding 90 minutes. At the same time the concept of connectivity can be abandoned altogether in respect of another region, or several regions. This affects not just one region.

The Government's Deputies and Ministers are being sent out to mislead people regarding the Government's capacity. The notion that the Government cannot use its shareholding because it might upset a minor shareholder is simply not true. The Government, as the holder of 25% of the shares, is under an obligation regarding its shareholding to protect the brand name, capacity and asset value of the company. If the actions of an unaccountable management damage these, the Government is obliged, under the memorandum and articles of association, and under company law, to protect its shareholding.

The abandonment of regionalism is consistent with the Minister's answer to Question No. 488 of today. He mentions the justification for not spending one red cent on Ceannt Station in the city I represent and in which I get more votes than anybody else. He stated: "Funding for the upgrading of transport facilities of Ceannt Station, Galway has not been included in Transport 21 as I understand that CIE intends to fund the works involved from the proceeds of the development of the overall site". There is not a penny for regional investment in the major hub in the west. This is consistent with the decision on Aer Lingus and the failure to spend the funds in the BMW region. We will hear the windy basis of the Minister's statement about being committed to regional policy.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I believed the Deputy was not in favour of the development of Ceannt Station.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

The Minister is in favour of a public private partnership. He should tell the truth about it.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I believed the Deputy was objecting to it.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

I am objecting to a public private partnership.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

He is objecting to development.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

I am objecting to a public private partnership. The Minister is in favour of a speculative development, as is perfectly consistent with every action he has ever taken in any Ministry.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

I call Deputy Ferris to speak without interruption.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

He is objecting to development.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

The Deputies can continue that argument elsewhere.

Martin Ferris (Kerry North, Sinn Fein)
Link to this: Individually | In context

The disastrous circumstances concerning Aer Lingus have arisen because of Fianna Fáil's decision to privatise our former national airline. The blame lies solely at the Government's door and its motion is of scant consolation to those in the mid-west who will be affected by the loss of employment, damage to tourism and a lack of access to Heathrow, one of the world's most important transport hubs.

Sinn Féin was vehemently opposed to the privatisation of Aer Lingus from the outset and warned that the process would undermine the delivery of national and regionally balanced services, worsen workers' terms and conditions and put in jeopardy the future of the airline's operations anywhere on the island. Sinn Féin forewarned that a privately owned Aer Lingus would be concerned only with the maximisation of profit for its shareholders and would have no interest in the social and economic needs of the Irish people. The Government has already abdicated its responsibility to ensure that, as an island nation, we have a national airline to play a vital infrastructural role.

Aer Lingus's announcement on cancelling Shannon-Heathrow flights will have serious repercussions for inward investment, tourism and indigenous businesses in the mid-west. Privatisation is a tried and failed economic ideology. The selling off of public services and interests does not deliver better services, more jobs and a stronger economy. As socialist republicans, we believe it is imperative that such assets remain in State hands under democratic public control in order to best serve the public interest.

Fianna Fáil is paying lip service to balanced regional development. At the very least, the Government should exercise its strength as a key shareholder in Aer Lingus by demanding that the company immediately reverse its decision to close the Shannon-Heathrow route. The former Minister for Transport, Deputy Martin Cullen, and the Minister of State at the Department of Transport and the Marine, Deputy Pat Gallagher, stood up in this Chamber and reassured Members that the Government would guarantee the protection of the State's strategic interests and that remaining a significant minority shareholder would ensure this. It made the same point to the farmers and workers in the sugar industry in Mallow and Carlow and said their interests would be protected by the golden share. Where is the golden share for the workers and producers of Mallow and Carlow? Where is the golden share for the workers and commuters in Shannon? The Government has misled us grossly and is being economical with the truth in the highest order.

The introduction of Aer Lingus's Belfast-Heathrow route is a very welcome and positive development, but it should not be at the expense of Shannon. One region should not be played off against another. This is what is happening and the Government's supporters in the mid-west have engaged in a whispering campaign and are trying to excuse themselves by saying the closure of the Shannon-Heathrow route and the move to Belfast is a spin-off of the peace process. This is a despicable tactic but all too typical of this Government.

We need an all-Ireland vision for Aer Lingus and the airport sector. The west needs a long-term, balanced regional development plan and the three airports should complement one another instead of competing. Not only has Aer Lingus washed its hands of Shannon but it seems the Government has followed suit. There has never been any rational argument advanced for the sell-off of Aer Lingus other than to satisfy the insatiable demands of the privatisation lobby within both Government parties and their financiers in the private sector.

The disgraceful privatisation has been a betrayal of the Irish people. Its consequences, with the closure of small post offices, the privatisation of Greencore and the continuing decline in the rural population, have been very serious. At the stroke of a pen, the Minister destroyed the fishing sector earlier this year. This is what the Government is doing to destroy the fabric of rural Ireland, which has served us so well through the years. It should be ashamed about what it is doing. It has sold out the workers in Shannon and the drift fishermen. By introducing legislation to criminalise the fishing industry, it has destroyed the west of Ireland. The Minister is responsible and it will be his legacy to this House.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

At least we did not blow them up or shoot them.

Máire Hoctor (Tipperary North, Fianna Fail)
Link to this: Individually | In context

I wish to share time with Deputies Dara Calleary and Martin Mansergh.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

Is that agreed? Agreed.

Máire Hoctor (Tipperary North, Fianna Fail)
Link to this: Individually | In context

Coming from north Tipperary, I cannot over-emphasise the importance of Shannon Airport, the Heathrow-Shannon link and all the other links that are being developed. We welcome the fact that over 50 destinations are served through Shannon and this has a very positive impact on north Tipperary. However, the decision by Aer Lingus to close the Shannon-Heathrow link came as a major disappointment. I believe it will see the error of this decision as time unfolds. Already we see that the take-up in Belfast is quite poor. Heathrow is already being served from Belfast by other airlines and consequently I do not yet understand Aer Lingus's decision.

I, like my party colleagues, called on the Minister for Transport and the Marine and the Taoiseach to intervene in the airline's decision. Legal advice was taken, the articles of association were examined and we learned it was not possible to intervene in the way proposed.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

It is possible.

Máire Hoctor (Tipperary North, Fianna Fail)
Link to this: Individually | In context

I will have something to say to the Labour Party in a moment and will address Deputy Michael D. Higgins's point also.

Article 84 of the articles of association contains a number of limitations on the right of a shareholder to overrule Aer Lingus's management decisions on business matters. In law, the directors are responsible for managing the company's business and the shareholders are not entitled to overrule management's decisions on business issues by way of a resolution passed at an extraordinary general meeting. Furthermore, directors are not obliged, as a matter of law, to follow any directions from the shareholders in respect of business matters or to obey any resolution with regard to such matters. We accept we must then examine other means, including other airlines, and offer the most attractive package with a view to retaining the Heathrow-Shannon route.

I have had regular discussions with the Minister and the Taoiseach on this matter, as have my colleagues from the mid-west. We support them in their efforts and emphasise to them the extreme importance of maintaining economic growth, retaining jobs and sustaining businesses in the mid-west region. Some 300 businesses were represented at the meeting at Shannon. They made it clear to us how important the slots were.

Long before Aer Lingus made the decision, the Minister for Finance introduced tax incentives for development in the mid-west area, particularly lake shore developments along Lough Derg in County Clare and North Tipperary. These will be more important in view of the recent decision by Aer Lingus.

When the issue of Shannon Airport came before us in this House, it concerned the sustainability of Shannon Airport and whether the Government would allow US troops to travel through Shannon Airport. The Government voted to allow troops through Shannon in the interests of sustainability, jobs and economic growth of the mid-west region.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

No one objected to troops going through for peaceful and legal purposes. Is Deputy Hoctor supporting the illegal war?

Máire Hoctor (Tipperary North, Fianna Fail)
Link to this: Individually | In context

Deputy Higgins should review the records. Deputy Pat Breen could not be found when it was time to vote; Deputy Jan O'Sullivan was on a fast train to Limerick that evening and did not vote. The deputy leader of the Labour Party refused to vote.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Is the only hope to have a war airport? The Taoiseach refused to condemn the war.

Máire Hoctor (Tipperary North, Fianna Fail)
Link to this: Individually | In context

That party is funded by the workers of this country. Shame on Deputy Higgins.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Shame on Deputy Hoctor and shame on the Taoiseach and the Government for supporting an illegal war.

Máire Hoctor (Tipperary North, Fianna Fail)
Link to this: Individually | In context

I will not take any lectures on this from the Opposition.

Martin Mansergh (Tipperary South, Fianna Fail)
Link to this: Individually | In context

Deputy Higgins is obviously not familiar with the UN resolution of 2004.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Yes, I am. The Government had no UN resolution.

Jimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context

Deputy Mansergh should withdraw that.

Martin Mansergh (Tipperary South, Fianna Fail)
Link to this: Individually | In context

As the national spatial strategy acknowledges, in practical terms regions overlap. West Tipperary has a close relationship with the Limerick and Shannon region in terms of employment and services. Several people from there are employed at Shannon, including Aer Lingus employees. There is also a wider interest common to all counties outside the metropolitan area in maintaining regional balance. During much of the 20th century the Shannon area was the prime area of economic development in the State, pioneering electricity generation, air transport, industrial development, tourism and a new, more technologically and Atlantic oriented third level institution.

Today, the Irish economy is vastly wealthier and more diversified but Dublin and the east coast have taken over as the prime economic locomotive. The Aer Lingus decision on the bank holiday weekend is a particularly blatant and deplorable jerk of the blanket towards the east coast. I have no time for a macho style of management that flouts Government policy, ignoring the State's continuing stake and the public interest.

Reluctantly in the Seanad, I supported the part privatisation of Aer Lingus. We came close to losing the airline in the aftermath of 11 September 2001, when some European companies did not survive. We understood wrongly that, apart from the transatlantic services, the Heathrow slots and connectivity, including Shannon, would be protected. This underlines the importance of how the small print is drafted.

The Shannon Airport Authority has been wrongly criticised for its special deal with Ryanair. Aer Lingus services have been cut down to three transatlantic services with connections to Dublin and the Heathrow flights. In contrast, as of last August, Aer Lingus services 58 British and European destinations from Dublin and 18 from Cork. Some 79% of passengers through the State airports in 2006 passed through Dublin Airport and vigorous policy initiatives are needed to spread the growth and stop it being concentrated in one airport with two or three terminals.

Once described as the national airline, it is doubtful if this applies any longer. In view of Aer Lingus's lack of interest in Shannon, outside of transatlantic services, the airport authority must quickly find other companies to fill the gap if economic confidence in the region as an industrial and service base is to be maintained.

As someone whose involvement in Northern Ireland policy began nearly 30 years ago in the field of North-South co-operation, I welcome Aer Lingus opening a hub in Belfast, something that would not have been possible in the 1980s unless heavily disguised. It is an exciting development but should have been achieved by a redistribution of slots without cutting out Shannon.

I am shocked by the simplistic and partitionist Opposition call to reverse the decision. It would cause a full-blown crisis in North-South relations.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

Rubbish.

Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context

There is no legal impediment.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

Deputy Mansergh should withdraw that comment.

Martin Mansergh (Tipperary South, Fianna Fail)
Link to this: Individually | In context

The Minister should reserve the right to hold Aer Lingus to its responsibilities.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

I welcome this motion and the commitment to position the Shannon Airport Authority on a financially sustainable basis. Not far up the road at — note the name — Ireland West Airport, Knock, the airport authority off its own bat — without any hand-holding or major support, managed to develop the airport into one that caters for 600,000 passengers. This time last year, Ryanair, the champion of regional development, pulled the Knock-Gatwick service. The airport authority worked to secure a replacement. This morning the board announced the recommencement of Knock-Gatwick services three times a day, starting from December. That shows the value of an authority that makes decisions and that is responsible to the shareholders and people from the area. The sooner we position the Shannon authority on that basis, the better. It can then be accountable, with particular reference to Deputy Cregan's remarks on the activities of the authority before Aer Lingus pulled out.

I am interested in Deputy Higgins's comments on slots. Slots should not belong to a private company, they are a national asset. If difficulties exist we should examine these in the context of European competition. If half of the supports available to the Shannon region were available to my county it would be much better off. This Government has shown great commitment to the Shannon and mid-west region. This is not an inter-region debate but I remember when we campaigned to have the airport built at Knock. Signs in Clare read: "If you support an airport in Mayo, don't knock". We need pride in our airport and the work done without any hand-holding.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

Support was earned. Yes, Charles Haughey put the airport there and fair dues to him.

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context

I wish to share time with Deputies Deenihan, McCormack and Reilly. Watching the performance of backbench Fianna Fáil Deputies I can only marvel at the ability to talk in any direction without appearing to move or turn. Now they are showing us they can act as well. This year's Oscar in the category of outstanding individual performance in comedy drama must go to Fianna Fáil backbenchers in the role of Opposition spokespersons for the west of Ireland. There was strong competition from ministerial colleagues, most notably the Minister for Defence, Deputy O'Dea. He gave a most convincing performance, which, in normal circumstances, would have made him immediately eligible for back bench status.

Today is the Oscar presentation ceremony. Who will walk to the podium to collect an award? Looking across the floor, I am reminded of the comment of the former Member, Joe Higgins, who returned home in November to find his wardrobe had been visited and his best socialist suits had been borrowed. During the past month I had a feeling of déjÀ vu, thinking that many backbenchers had come visiting to try on the Opposition wardrobe. Our reinvigorated Fine Gael party will ensure that next time the Opposition suit will fit them. We now see the true character of Fianna Fáil politicians who talk the loudest. They talk the talk, now we will see if they walk the walk or even sit out the talk. As I look across there are not many sitting out the talk.

Removing the air services to Heathrow is a damaging blow to Shannon Airport. It is also a powerful symbolic action, with serious implications for people living in the western region. Aer Lingus management should not be blamed for the transfer of the Heathrow slots to Belfast. When a company makes a major strategic decision about its future there can be little room for sentiment. No successful company makes a major strategic decision based on sentimental attachment to the past. Commercial success is concerned with the future and rigorous assessment of the present.

The privatisation of Aer Lingus is a perfect example of what happens when sentiment is taken into commercial decision making. The Government decision to privatise Aer Lingus was largely doctrinaire and when sentimental politics got in the way, the key issue of ownership was fudged. This left us with the fiasco facing us today. This seemed like a good idea to the Government because it could have significant shareholder authority without political responsibility. Like other cunning schemes, it has come unstuck. The Government has a mishmash of little authority and evasion of actual responsibility in that the transfer of the Heathrow slots from Shannon to Belfast is a direct commercial consequence of earlier Government decisions.

The Government has an unavoidable responsibility to address the present situation. To avoid further divergence between the economic conditions of the east and west I urge it to immediately launch a major review of regional development policy.

Jimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context

It is obvious that before Aer Lingus made this decision which has no commercial basis whatsoever, it had full consultation with the Government and was given clearance from the Minister and from the Government.

The mid-west region is one of the most dynamic in this country and in Europe. One of the main drivers of that dynamism is the Shannon-Heathrow link which has been in place for many years and operated by Aer Lingus. Many of the major industries in the region would not be there but for this connection. Managing directors and executives of companies no longer want to spend their time in planes. They want to travel to work as quickly as possible.

I spoke recently to overseas members of Ballybunion Golf Club who depend on this air link. A total of 25% to 30% of the customers of Ballybunion Golf Club travel through Heathrow. They travel from all parts of Europe and America. Without this connection there would be a significant drop in the number of golfers coming to Ballybunion and this would affect the whole town of Ballybunion which depends so much on the golf course. This is an area with very few jobs. Ballybunion was planning to spend €3 million on a second golf course and the target customers were to be drawn from the greater London and Heathrow area. The proposed golf course is currently being promoted and this marketing campaign will collapse because of this decision.

It irritates me to listen to speakers bring Iraq into the equation or to listen to Deputy Mansergh raise the issue of partition. This has nothing to do with Belfast or any other airport; it is to do with Shannon. The Members opposite who represent the mid-west region and the western seaboard will be judged on whether there will be four slots. The Minister of State, Deputy Killeen, is a good friend of mine and he is a pragmatist. Along with Deputy Ó Cuív he will be judged on whether or not these four slots will be there next January. This is how people will judge the Deputies and all the spin in the world will not fool the people of the region.

I wish to acknowledge the work of the Atlantic Connectivity Alliance which has provided us with accurate statistics and information and for encompassing all the interest groups of the area into one voice. This is a very important day for the whole region of the western seaboard. The Government has shown the white flag and the Deputies have given up on Aer Lingus connectivity with Heathrow.

Pádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

The bottom line in this debate is that when Aer Lingus was privatised we received assurances from Ministers that notwithstanding the privatisation the connection slots at Shannon and other airports would be safeguarded by the State's continued ownership of 25.4% of the company. The Dáil was given those assurances. If the Government now states it will not interfere in the matter then the Minister misled the Dáil when the privatisation Bill was going through. If the Government is now washing its hands of the matter why is it holding on to the 25% share? It does not make sense. Why does it not sell the shares?

The decision to transfer the slots from Shannon will have a serious effect on business, tourism and jobs in our region. The Government Ministers acknowledge that the decision is contrary to Government regional and aviation policy. The Government professes to be committed to regional development through the national spatial strategy. If it is committed in the programme for Government to a link road corridor between Waterford, Cork, Limerick, Shannon and Galway and if it is serious in its commitment to these projects, why is it now standing idly by and allowing this decision to be made? Nero fiddled when Rome burned. I do not know if fiddles were even invented at that time but there are certainly fiddles now.

The decision to transfer the Shannon-Heathrow slots from Shannon will have serious repercussions for tourism business in the mid-west and in Galway. It is estimated that Galway receives 12,000 tourists a year through Shannon. Hundreds of millions of euro of taxpayers' money was expended on grants and tax incentives and on the refurbishment of hotels in the region. Is the Government aware of the devastating effect the loss of this business will have on the region? I call on the Ministers and Deputies in the region who initially spoke out against this decision to stand up and be counted. Where is my colleague, the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív in this matter? Where is comedian Minister, Deputy O'Dea today? He was in great form yesterday but I do not hear much of him today.

What is happening to Shannon now could happen to Cork or Dublin at the executive will of Aer Lingus. The Government is setting a precedent whereby it will be unable to stop this happening. Nobody is safe from the so-called commercial decisions. This is not solely a matter for the mid-west region.

James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context

I thank Deputies Perry, Deenihan and McCormack for sharing their time. I am a Deputy for Dublin North which has Dublin Airport at the heart of its commercial life. The decision by Aer Lingus to transfer its Heathrow slots from Shannon Airport could be followed by a decision tomorrow to do the same in Dublin. The Government gave an undertaking to protect the Heathrow slots at Shannon, Cork and Dublin and now betrays this undertaking at the first request. We are an island nation and national interests take precedence over perceived short-term goals. I use the word "perceived" because numerous slots from Belfast to Heathrow already exist and the commercial need for the decision has been disputed.

I ask the Minister to take his responsibilities seriously. I urge him to use the Government's 25% stakeholding in Aer Lingus to protect the Shannon slots as he promised this House and the country.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

Tá áthas orm deis a bheith agam cúpla focal a rá maidir le cinneadh Aer Lingus faoi Aerfort na Sionna. Caithfidh mé a rá, ar nós gach ball eile den Rialtas, go raibh an-díomá orm maidir leis an gcinneadh úd. Caithfimid socrú céard a dhéanfaimid faoi agus conas a dhéanfaimid cinnte go mbeidh seirbhísí cuimsitheacha ar fáil ó Aerfort na Sionna.

I congratulate Ireland West Airport Knock on today's announcement of a radical extension of its services to London Gatwick. Ireland West Airport Knock has shown great initiative and determination in building up that airport. As the Minister concerned I am delighted that the Government has been working hand in glove with the airport to achieve these results.

I have a passionate interest in balanced regional development which I do not regard as being one area——

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

The Minister has a poor way of showing it.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I am 30 years proving it.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

The Minister has been in power too long.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I do not regard it as one area seeking things at the expense of another but a collective decision by us as a people that all our people should share equally in the fruits of economic development and have equal opportunities in so far as possible.

Ulick Burke (Galway East, Fine Gael)
Link to this: Individually | In context

The comely maidens at the crossroads.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

Like my colleagues in the House I was disappointed at the unilateral decision by Aer Lingus to move the slots to Belfast. Of course I welcome the development of service in Belfast but I believe this should not have happened at the expense of Shannon. Since the announcement I have received many calls asking me to make representations to the Government to force Aer Lingus to reverse its decision.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

The Minister is a member of the Government.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

In reply to the Deputy, these are the calls I received; I am not saying I agreed with them.

Deputies:

Double standards.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I hope people will realise it is not possible to make Aer Lingus do this and that there could be no possible motivation for the Government not reversing Aer Lingus's decision if it were possible to do so. I have a firm belief that when a problem arises it is foolish to waste time on what might have been if decisions had been taken differently in the past. It is impossible to foresee everything. The reality is that the only way to resolve problems is to look at the reality of the present and, based on that, plan for the future.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Then the Minister should resign.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

The quicker this is done when a problem arises, the better the chance one has of solving it. It is one of the greatest disservices to any region to sell it short.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

The Government sold the silverware.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I find it hard to see how portraying one's region as a loser can in any way attract investment.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

Come and join us over here.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I thank the Deputies who have engaged in the debate on this motion. A number of very important issues have been raised and I wish to take the opportunity to respond to them.

Ulick Burke (Galway East, Fine Gael)
Link to this: Individually | In context

I thought we had the next slot.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

In accordance with the order of the day, which I have to follow, I am obliged to call the Minister at 3.20 p.m.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

Deputy Burke and I have five minutes.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

The Minister has ten minutes to reply and I am obliged to put the question at 3.30 p.m. in accordance with the order agreed this morning.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

That is not the running order we have.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

There is nothing I can do about that.

Pádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

Time is not that pressured. That is ridiculous.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

We will continue to work hard to ensure the dynamic mid-west region is well served in its international connectivity and remains an attractive base for inward investment.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

Where is the Minister, Deputy Willie O'Dea today? That is the question we all want answered.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

He is writing his column for the Sunday Independent — "'How I stood by Shannon' by Willie O'Dea".

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

He is "Crocodile" O'Dea, not Willie O'Dea.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

He is hiding.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Under the national development plan and Transport 21, the Government will continue to invest heavily in the region to create an integrated infrastructure to underpin its competitive position. When Aer Lingus took the decision to discontinue the Shannon-Heathrow route, it was clear that the loss of the important air link would have an impact on the region. The challenge for Government now is to continue its investment plan in the region and to support the airport authority in its effort to replace that link. The regrettable decision by Aer Lingus will not mean that the Shannon area suddenly becomes a wasteland.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

It was the Government's decision.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I will not allow irresponsible Opposition Members to damage the future prospects of the region by overemphasising their negativity.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

As a Government, we have a responsibility to make the mid-west region as attractive as possible to international investors.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

The Government is going about it the wrong way.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

We will do so despite the over-the-top scaremongering by people across the floor of the House.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

How does the removal of the slots protect Shannon?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Over the past few weeks and again today, Opposition Members have referred to the statements in the Chamber at the time of the Aer Lingus IPO by my predecessor on the importance of the Shannon-Heathrow routes.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

That is right. The Minister has it now.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

These statements were made in good faith and based on an understanding given to my predecessor by Aer Lingus.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

By the Government.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

Who were the Government's legal advisers?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

That Aer Lingus decided subsequently to take a unilateral decision to reallocate these slots to Belfast from Shannon ran counter to our understanding and was regrettable.

Pádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

They did not know what they were talking about.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Aer Lingus is, however, within its legal rights to take this course of action.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

As is the Minister to call an extraordinary general meeting.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

As I have said time and time again, the decision goes against Government regional and aviation policy, but we are precluded legally from blocking the move.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

Use the 25.4% shareholding.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

As difficult as this is, it is a fact.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

The Government's word means nothing any more.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Opposition calls for the Government to support a Ryanair-backed EGM at Aer Lingus were curious to say the least.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

The Government should call its own EGM.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Deputy Kenny, who I am glad to see has joined us, appeared to think that pitting the two main airlines on the island against each other was a good idea.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

Where is the Taoiseach?

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

The Minister, without interruption.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

The Government gave its approval. This is not only about Shannon.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Had the Government taken this flawed and knee-jerk course of action, it would have led only to a damaged Aer Lingus and played directly into the hands of its most significant competitor.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

It would not make sense. It would be bad news for consumers and national aviation policy. I am no economist, but even I know that to keep prices and services consumer-focused requires competition. It is something Fine Gael seems to have forgotten.

I was especially amused to hear a Fine Gael Deputy from the mid-west call for Aer Lingus Heathrow slots to be moved from Cork to Shannon Airport.

Pádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

Spin.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

That was Fine Gael's considered solution to the problem. Needless to say, it did not take long for him to be reined in by headquarters.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

It took the Government three weeks to wake up.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

Wheel in Con Mullen until we have a look at him.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Labour Party asked why the State would not call an EGM to force Aer Lingus to reverse its decision. As I explained at the outset, legal advice to Government on the holding of an EGM has been clear and unequivocal.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

The Minister is hiding behind that legal advice now. Why did he not get proper legal advice in the first place?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Shareholders do not have the power to overrule management decisions on business matters.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

It is a business matter. That is why.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Management made the decision on foot of a mandate to develop the company commercially. On foot of its advice, the Government decided it would be inappropriate to intervene in the company's decision making.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

Wash their hands of it.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

The Government knew about this six months ago.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

To do so would, ultimately, damage both the company and its customers. While the articles of association of Aer Lingus make specific provision for shareholders to intervene in the event of a decision by the company to dispose of Heathrow slots——

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

——such provisions are not relevant in the current context where no transfer of ownership is proposed.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

"'How we stood by Shannon' by Willie O'Dea".

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

Transfer as well. The Minister is ignoring that point.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Deputies opposite mentioned the word "transfer" which refers to a transfer of ownership from one airline to another.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

"Disposal" is defined as including "transfer".

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The slots are not being disposed of and are not being transferred.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

The Minister has only four minutes and must be allowed to reply. He must be allowed to reply and we must have order.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I know it is difficult for the Opposition to listen to the truth, but we will continue.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

It is more difficult for the Minister.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

"Disposal" includes "transfer".

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

While Government accepted long ago that the loss of service would have an impact on the region, it would not be valid to conclude that a location lacking immediately proximate, direct access to Heathrow cannot attract investment.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

The Government has screwed the unions in Aer Lingus through the new hub in Belfast.

Pádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

They stole it.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Limerick-Shannon gateway has had this access in the past, as have Dublin and Cork, but other gateways have made considerable progress without this advantage. Galway, the dearly beloved city of Deputy Higgins, has been significantly more successful than Limerick-Shannon at attracting inward investment since the upturn of the economy in the early 1990s.

Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

It is a pity the Government could not give it a penny in Transport 21.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

While connectivity is important, it is only one part of a region's appeal to potential investors.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

The Government has delivered nothing, not even a cent, to the airport.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Limerick-Shannon retains significant strengths, including a strong third level education infrastructure which is well connected to business, a long tradition of dealing with multinational companies——

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

——and better, albeit reduced, air connectivity than most other gateways. The senior officials group has reported that some annoyance was expressed at their meeting with the Atlantic Connectivity Alliance about allegations that the consequences of the loss of the Heathrow route was being exaggerated.

Pádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

Why are people concerned so?

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I have been accused in the House of saying that everybody who spoke on the matter exaggerated, but that is nottrue.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

The Minister said thatwe were exaggerating — that it was not thebe-all and end-all — including the Taoiseach's brother.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Fine Gael chairman of a local authority in the area mentioned the fact that this would cause the loss of 100,000 jobs in the area. I made my statement because people should not exaggerate matters to the detriment of the region.

Pat Breen (Clare, Fine Gael)
Link to this: Individually | In context

The Minister said it was not the be-all and end-all and that it was well serviced.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

On the public service obligation, it is not open to the State to acquire slots at Heathrow as has been suggested.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

Such hypocrisy.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

It has been suggested that the designation of public service obligation routes on regional development grounds could be explored under the relevant EU regulation. The Government has done this. A State subvention for a PSO Shannon-Heathrow air service would be difficult to justify for a number of reasons, not least because other airports would seek similar provision.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

They have them already — 250.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Not on commercial routes. Aviation constitutes a liberalised competitive market and there is no evidence of significant market failure in the provision of air services to the State airports, including Shannon.

James Bannon (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context

The Government is denuding it now.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Indeed, Shannon has shown significant traffic growth and route development in the recent past. New services may emerge to avail of the opportunities arising from the ending of the Aer Lingus service. Ryanair currently provides connectivity to Gatwickand Stansted and, from winter 2007, Luton Airport.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

These airports are all in London.

Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context

The Minister is badly advised.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Shannon Airport has already launched a new incentive scheme to enhance general connections to significant hub airports and this commercial approach to route development should be, and is being, encouraged by the Government.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

I hesitate to interrupt the Minister but it is 3.30 p.m.——

Ulick Burke (Galway East, Fine Gael)
Link to this: Individually | In context

A well timed interruption.

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

Where is the Minister, Deputy O'Dea?

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

——and in accordance with the order of the Dáil, I must put amendment No. 1.

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

As this is such a serious issue for the mid-west, I demand a vote through the lobby.

John O'Donoghue (Kerry South, Ceann Comhairle)
Link to this: Individually | In context

The vote will proceed.