Dáil Éireann debate -
Thursday, 24 May 2001

Vol. 537 No. 1

Written Answers. - Pension Provisions.

Michael Creed

Question:

75 Mr. Creed asked the Minister for Public Enterprise if she received representations from the Retired Aviation Staff Association regarding their pension entitlements; if she recognises the legitimacy of their grievances; and if so, the steps she proposes to take to resolve this issue. [15376/01]

Deirdre Clune

Question:

76 Ms Clune asked the Minister for Public Enterprise if she has received the report of the task force established to examine the concerns expressed by the Retired Aviation Staff Association regarding their pension scheme; if she is in a position to address the pensioners' concerns; and if she will make a statement on the matter. [15616/01]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 75 and 76 together.

I am fully aware of the concerns of the Retired Aviation Staff Association – RASA. Over the past two years or so I have responded to numerous representations on the concerns of RASA about the Irish airlines, general employees, superannuation scheme. I have also met representatives from RASA and senior officials from my Department met the association on two occasions last year. Earlier today, senior officials had a further meeting with the association. In addition, the association has also met senior management representatives from Aer Lingus and Aer Rianta in relation to their concerns.

The task force on pensions established by the chairmen of Aer Lingus and Aer Rianta at my request submitted their report to the chairmen at the end of May 2000. Arising from the companies consideration of the report, Aer Lingus and Aer Rianta each decided to establish new pension schemes for their staff and existing pensioners. Against the backdrop of Aer Lingus and Aer Rianta proposals to establish new pension schemes and their response to RASA's concerns, the association revised their proposals for enhanced pension entitlements for pensioners.

As regards pension enhancements in a new scheme to benefit both serving staff and existing pensioners, the companies' position is that these will emerge from negotiations with representatives of staff which are associated with strategic change initiatives in respect of both companies. In the case of Aer Lingus, this means the privatisation of the airline as decided by the Government. It is Aer Lingus' intention to implement the new pension scheme as soon as possible after the privatisation of the airline is completed.

The terms of the proposed new pension schemes are essentially a matter for the companies concerned to negotiate with staff interests tak ing account of a number of factors not least affordability and industrial relations priorities for the companies concerned. Existing Aer Lingus and Aer Rianta pensioners who transfer to the new Aer Lingus and Aer Rianta schemes will receive the improved benefits when the new schemes are introduced.

In relation to funding the pensioners' revised proposals, the chairmen of the companies concerned have advised me that neither Aer Lingus nor Aer Rianta is in a position to provide additional payments into the pension fund. There is no question of any State funding or any of the proceeds from the privatisation of Aer Lingus being provided towards the Irish airlines, general employees, superannuation scheme or the proposed new schemes to be established by either Aer Lingus or Aer Rianta.