I thank the Cathaoirleach for the opportunity to raise this important matter on the Adjournment. While the Minister of State, Deputy O'Keeffe, is an expert and able Minister I did not realise his ability extended to the proposed privatisation of Aer Rianta. Given that he is not a member of Cabinet I ask him to convey to the Minister for Public Enterprise, Deputy O'Rourke, my disappointment that she has not come here to take this important matter.
The reason I raise this matter is that there is a general belief that the Government is about to make a decision in relation to the privatisation or part-privatisation of Aer Rianta. It is important that the Government realise this is a very serious matter and that the Warburg Dillon Read report should be rejected out of hand.
Aer Rianta has responsibility for three national airports – Cork, Dublin and Shannon. These are basic infrastructural utilities like our seaports and our road infrastructure. It is essential that the Government retain control over what I believe is a key player in our national and regional economies. There is a huge difference between trading entities in a free market – such as air carriers and telecoms – and utilities such as airports.
A fundamental issue of public policy cannot be forgotten in the debate about the best future strategic direction for Aer Rianta. Two central issues stand to be examined, the national air access transport for an island economy and regional policy. Any Government can decide to maintain or reduce airport landing charges and proceed with the marketing of new routes to develop our tourism economy and commerce. However, this will not be possible where private shareholders are concerned. Policy will be decided in the best interests of the balance sheet of the company. Earnings per share will be the priority, even after partial privatisation and not the interest of the national economy or public policy.
The argument put forward that EU rules on investment prohibit the Government from investing in our airports is something that must be seriously questioned. I do not believe it is contrary to EU or any other rules to make such State investment. Airports, unlike aircraft, are not mobile assets; they are fixed assets like our roads and seaports and the Government has no difficulty in providing a capital programme to serve this basic infrastructure.
Equally, the other argument that has long been put forward that the State cannot act as regulator of itself no longer stands since the appointment of a new regulator, Mr. Bill Prasifka, for aviation and airport matters. The State can now retain ownership of Aer Rianta's core assets since there is no longer an inherent conflict of interest. Therefore, that argument falls by the wayside.
Suggestions that a 30% flotation of Aer Rianta is inevitable are totally unacceptable. In that case future equity needs would dictate that the State shareholding would be diluted. In effect, what would happen is that public policy considerations would be further reduced and the demands of the private shareholders would be more fully catered for in that scenario. Ultimately, this would lead to a full take-over of Aer Rianta. For the Government to proceed to privatise would be equivalent to a farmer selling his farm and holding on to his herd of cows. It makes neither common sense nor economic sense. I call on the Minister for Public Enterprise, Deputy O'Rourke, the Taoiseach and the Government to reject the proposals of the Warburg Dillon Read report and to retain Aer Rianta in full State ownership.
There are other specific matters that arise in relation to Shannon Airport. Recently, an advertisement for two positions placed in the local newspapers suggested that CVs be sent to the personnel department in Dublin Airport. This is contrary to regional policy and is focusing more towards centralisation. It is also contrary to stated Government policy. I ask the Government to look at this issue with its State company and to redress the situation.
On the question of the proposed part-privatisation, given that the flotation would be small, I understand that it would only be to institutional investors.
I compliment the Minister for Tourism, Sport and Recreation, Deputy McDaid, for the responsible position he adopted at the weekend when he made it clear that part-privatisastion or privatisation of Aer Rianta would not be advantageous to the development to our tourism economy. I think he has stated that both inside and outside Cabinet and I compliment him for so doing. The political parties – Fine Gael, Labour, the socialist parties – SIPTU and all the trade unions are opposed to privatisation. The IPO – initial private offer – has an automatic inference that this is only the initial offer and that there will be more offers to privatise. We must realise that once that happens there is no going back – it is irreversible. No safe mechanisms can be built in.
Airports are a fundamental key to the national economy and, more importantly, to the regional economy. There is no good reason for privatisation, bar the Government not being prepared to invest £350 million into the airports as required. There is no EU regulation that prohibits the Government from doing so and an argument put forward on that basis does not stand. I suggest the Minister of State convey to the Minister for Public Enterprise, Deputy O'Rourke, the considered view of all people, who have the national economy and the regional development interest at heart, that privatisation or part-privatisation is not in our best interests at this time and to cast the issue aside and forget it.
