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SIPTU begins protective ballot in Aer Lingus over privatisation

SIPTU is to begin balloting members in Aer Lingus tomorrow, following the last of the general meetings with members in Cork this evening. National Industrial Secretary, Michael Halpenny, has also written to TDs, senators and councillors today updating them on the situation and seeking their support for the campaign to keep the national airline in public ownership.

In the letter Mr Halpenny refers to recent correspondence with John Murphy, Assistant Secretary at the Department of Transport which cites correspondence between the former EU Commissioner Mario Monti and Labour MEP Proinsias De Rossa over investment in Aer Lingus. This includes a written assurance from Commissioner Monti on August 30th, 2004, that:

"… The Commission has no objection of principle to capital injections effected by a Member State as a share holder in a public company, provided it conforms with the "market economy investor principle". The assessment of the compliance of a capital injection with this principle is based on all relevant facts and circumstances, including the profitability of the public company and the Plan intended to be funded through the injection".

Mr. Halpenny added that SIPTU was still awaiting clarification from the Department as to the status of the formal request made by ICTU and the Aer Lingus unions to (re)visit the issues of state investment and the ICTU State Holding Company Proposal. The request was made in light of the apparent assessment of the Government’s own advisors UBS and AIB Capital Markets that the sale of (60%) the State’s Holding could only realise approximately €400m - or roughly the price of 4 wide bodied jets.

"This means that the National Airline would be effectively delivered to private investors for the price of four planes with the company still having to chase the balance of the €2 billion capital requirement outlined by them," he said. "There would be nil gain to the Exchequer, marginal gain for the airline, major concern for our members and the removal of public control over a strategic asset vital to the economic security of the State.

"The irony is that in a week where Government Ministers are flying out - mainly by the National carrier - to promote the 'Shamrock' in the best of all social, cultural and economic senses, they apparently intend returning to sell off the 'Shamrock' - i.e. Aer Lingus - to the highest bidder.

"We have previously instanced the case of Air New Zealand privatised in the late 1980’s, bankrupt in the 1990’s under private ownership, rescued by the State at twice the price and now prospering in public ownership for the benefit of all the New Zealand people and the workforce," he concluded.