Vol. 521 No. 4
11 Ms McManus asked the Minister for Public Enterprise if she has received the report of the task force established to examine the concerns of the Retired Aviation Staff Association in relation to the Irish Airline (General Employees) Superannuation Scheme from the chairmen of Aer Lingus and Aer Rianta; the plans, if any, she has to address the concerns expressed; and if she will make a statement on the matter. [17335/00]
25 Mr. R. Bruton asked the Minister for Public Enterprise when the task force on the pensions in Aer Rianta and Aer Lingus is to report; if she has received any interim or final submission from the task force; if she has had discussions with the Department of Finance with regard to the outline of a resolution to this seriously under funded pension scheme; and if she will make a statement on the matter. [16396/00]
36 Mr. S. Ryan asked the Minister for Public Enterprise if she will report on the delay in the publication of the task force report on improvements in the Aer Lingus and Aer Rianta superannuation scheme; and if she will ensure that this issue is resolved prior to the passing of the Aer Lingus Bill, 2000. [17299/00]
I propose to take Questions Nos. 11, 25 and 36 together.
I have received a copy of the report of the task force which at my request was prepared for the chairmen of Aer Lingus and Aer Rianta in relation to concerns raised by a number of Aer Lingus and Aer Rianta pensioners about the Irish Airlines (General Employees) superannuation scheme. I have been advised that RASA, SIPTU and the Irish Airlines Executive Staff Association have also been furnished with the report and on that basis I do not see that the question of publication is relevant because all those touched by it have received a copy of it.
The task force report is now being examined by Aer Lingus and Aer Rianta. As soon as this examination is completed, the chairmen will report to me.
Will the Minister advise the House, given that she has received a copy of the report – I did not receive a copy – of the cost of meeting the genuine grievance expressed by the Retired Aviation Staff Association? The basis of their complaint was that they had no guarantee of post-retirement pension increases and that these increases were linked to inflation. When inflation is high they will get big increases but when it is low they will get practically no increases. What will be the cost?
I do not know. I got the report last week and it has been sent for actuarial study. The two chairmen will refer back to me – soon I hope – with their analysis of the report. It is clear that people's rights will have to be protected and vindicated. I have not read the report and it would be wrong of me to comment. It is full of figures which have to be studied actuarially. The two chairmen will come back to me with their reports on it.
There is no doubt that there are questions in the report which need to be addressed. When the analysis is received Aer Lingus and Aer Rianta will start to address them.
Is it not disappointing that the Minister has not read a report which will have such far reaching implications for pensioners? This is our last opportunity before the summer recess to ask the Minister about the report and her intentions in that regard. I am disappointed she cannot make more commitments in relation to what the task force has reported.
Will the Minister make the actuarial costing available to Members and indicate whether she intends to make a capital allocation to the pen sion fund to make up the deficit? On what basis will the Minister seek to make up the deficit? Is she committed to ensuring that pensioners will receive increases in line with proper developments rather than the pensions being tied to indexation, which is far below the level of pensions in other similar employments? What is the Minister's intention? These companies are due to be privatised and the pensioners who created the wealth from which the Exchequer and country will benefit are being left high and dry. With inflation increasing they are in serious difficulty.
Nobody will be left high and dry while I am in charge of this Department. It is amazing that during its two and a half years in office, the previous Government did not address this. I set up the task force. I knew from meeting and talking to people that a study of what had happened would be required. That is what I initiated. I wish to be quite clear in that regard, lest the Deputy lose the run of himself.
Can I point out to the Minister—
No.
The Deputy will have a chance to speak again.
This has been going on for more than a decade.
Really? The Deputy's party was in office for two and a half years.
The Minister's was there for 13 years.
Is it not a great wonder that your party did not address it, Deputy Bruton? You have put down many questions which I am delighted to answer.
The Minister and the Deputies must address their remarks through the Chair.
I am sorry, a Cheann Comhairle.
The Minister is losing the run of herself.
Exactly. Fine Gael was in Government for two and a half years.
What is the Minister going to do for the pensioners concerned? We have had enough lectures.
The Deputy will have an opportunity to ask more questions.
I received the report last week. It has been sent to the chairmen of Aer Lingus and Aer Rianta and they are carrying out studies of it. We have also sent it for actuarial analysis. The chairmen will discuss it with me. It is clear that the issue will have to be addressed. I intend to keep faith with people but I do not intend to shoot my mouth off about an actuarial report, the final version of which I have not received.
I will write to the spokesmen of the political parties, indeed to everybody who wrote to me about the issue, when the chairmen have reported, when the study has received its actuarial imprint and when the decision making process is to be concluded.
I acknowledge the progress the Minister has made on the matter.
Thank you.
Real progress has been made, although we would prefer if it were quicker. Does the Minister agree that the scheme under which the retired aviation staff are suffering is extraordinary in so far as it is dependent on the whim of the trustees, the consumer price index may affect it and if the scheme is not in surplus the staff do not get anything? All other staff to whom they were linked during their working lives, such as staff in the ESB, An Post, Eircom, Bord Fáilte and the Irish Aviation Authority, have pension schemes which are related to increases in staff salary. Does the Minister agree that this must be corrected? I presume the object of the current exercise is to do that.
The object is to correct it. It is now being examined by the chairmen of Aer Lingus and Aer Rianta and they will report to me. It must be borne in mind that I only received the report last week.
Will the Minister meet the Retired Aviation Staff Association so its members' concerns can be dealt with face to face? She will be aware of their discontent that they were not appointed to the task force where they could make a direct input. Will she arrange such a meeting urgently? Will she also indicate the basis on which the Government will resolve this issue? What is the Minister's target? Is she guaranteeing that she will seek to establish pension parity with all other State companies?
I am waiting for the chairmen to report to me. The report came in last week. When the chairmen report to me I will study their findings, the report and the actuarial comment on the report. The matter will then be discussed with my Cabinet colleagues.
I did not set up the task force. I asked each chairman, Bernie Cahill and Noel Hanlon, to set up a task force. They did that and the people appointed to the task force and with whom they consulted was outside my remit. I will ask them to meet with the Retired Aviation Staff Association. The association has written to me.
Will the Minister meet the association? She is ultimately responsible.
I will certainly ask the chairmen to meet the association and I will see how that meeting goes.
The association believes the Minister is very influential and that it would be worthwhile to meet her.
I hope so.
I thank the Minister for her communication with me on this matter. I wrote to her on behalf of the Retired Aviation Staff Association. The association is confident that Governments down the years, particularly when they involve Fianna Fáil, have been friends of the association. Will she follow through on that confidence and ensure that the members are not disappointed when it comes to reviewing what, for them, is a serious situation? They believe their pensions will be rather small. Will the Minister ensure she is involved in resolving this matter to the satisfaction of the Retired Aviation Staff Association?
I retain a great interest in the matter. However, it is a matter for Aer Lingus and Aer Rianta, even though they are semi-State companies. When the chairmen bring me their findings on the report and outline what they intend to do, I will raise the issue with them.
