SIPTU warn against Aer Lingus sell-off

Government plans to finally back the partial sell-off of Aer Lingus today is the wrong decision for the country, the State’s biggest union said.

The Cabinet is expected to approve the sale in a set of measures for the aviation industry, which also includes a long-awaited second terminal at Dublin Airport.

Differences between Fianna Fáil and the Progressive Democrats over who should own the new terminal have held up agreement for several months.

But SIPTU national industrial secretary Mick Halpenny said today: “It would be a big mistake to hand over control to private interests.”

Mr Halpenny added that a similar sell-off of the national airline in New Zealand backfired. “It was an absolute disaster and the State ended up having to buy back the national airline out of private ownership and all it did was accumulate vast amounts of debt

“It’s undeniable that where the national airline is concerned, there should have been no debate on this.

“There are certain areas of enterprise like national airlines and critical infrastructure that are not amenable to private ownership.”

The Irish Congress of Trade Unions said any minority shareholding retained by the State would ultimately be “diluted to nothing” as the private shareholder continued to invest more and the State did not.

The Progressive Democrats have been determined to see an independently-run terminal at Dublin airport competing with the existing terminal while Transport Minister Martin Cullen last week said the idea had been an “abject failure” when tried elsewhere.

However Taoiseach Bertie Ahern said yesterday in relation to a deal: “I think we’re effectively nearly there.

“We haven’t finalised it until the Government finalises it but we’re making good progress.”

However, when asked if a decision would come today he said: “Maybe not [today] but soon.”

After months of disagreement between Fianna Fáil and the PDs on the issue, Mr Ahern told reporters in Warsaw yesterday: “I’ve no differences with the Tánaiste Mary Harney.

“All the Tánaiste and I want to see is an effective and efficient Dublin airport for the future and we’re working to get a resolution of that. Whether it’s tomorrow or not, it will be soon.”