The ‘golden share’ – Government hypocrisy uncovered

The Cabinet will reportedly be considering the Aer Lingus-Shannon issue on Wednesday. It is expected that the Government will back the Aer Lingus decision no matter what.

This has prompted people to ask what is the point in holding shares in the company, if the Government believes it should do nothing to protect the national interest when Aer Lingus is trying to take all of its Heathrow slots away from Shannon?

Once a state company or semi-state company is privatised, it becomes a victim of the market.

But Aer Lingus was not fully privatised. The State held on to 25.3% of the company shares.

Why?

At the time the Government explained that the rationale for holding on to this “golden share” was to allow it to block any subsequent attempt by Aer Lingus to dilute the interests of Dublin, Cork, or Shannon airports. Did the Government really believe that or was it just trying to fool the people.

Michael O’Leary called the Government’s bluff when he offered to have Ryanair use its shares in Aer Lingus to defend the Heathrow slots from Shannon. This assures the Government of the support of more than a majority of the shares in Aer Lingus.

The Government’s bluff has been called and its craven hypocrisy has been exposed.

When any Government resorts to such deception, it not only undermines its own credibility, but it also betrays democracy itself.

The Government would hardly stand idly had Aer Lingus decided to shut down the Dublin-Heathrow link. If it is serious about decentralisation, it should be seeking to strengthen Shannon airport.

A report to be published tomorrow is expected to predict that severing the Heathrow link will lead to job losses in industry and tourism in the region.

Aer Lingus should not be allowed to treat the interests of the Shannon area with such impunity.

If it is allowed to do so, it will do the same to Cork airport, and ultimately Dublin as well, if this is seen in the interest of shareholders.

The so-called “golden share” was supposedly retained in the national interest. The national interest should therefore be paramount as long as those shares are maintained.

Some Government deputies have been posturing and squealing about the behaviour of Aer Lingus, which is making decisions in the financial interests of its shareholders, whereas the truly reprehensible behaviour has been on the part of Government in betraying its assurances to the people of this country.

It would not take many Government deputies with the courage of their convictions to compel the Government to use “the golden share” for the purpose for which it was purportedly retained.

It is time that the bluff of those squealing deputies was called. They should put up or shut up. There has been too much deception and prevarication already.