Terence Flanagan
Question:863. Deputy Terence Flanagan asked the Minister for Transport, Tourism and Sport the position regarding the sale of Aer Lingus (details supplied); and if he will make a statement on the matter. [22965/15]
View answerTuesday, 16 June 2015
Questions (863)
Written answers
An agreed solution was implemented at the start of this year to address the funding difficulties in the Irish Airlines (General Employees) Superannuation Scheme (IASS). This agreed solution is a matter for the Trustee, the companies participating in the scheme, the scheme members and the Pensions Authority.
Any potential proceeds from the sale of the State's minority shareholding in Aer Lingus will be paid into the Exchequer and the Government has indicated that such proceeds should be used to establish a new 'Connectivity fund', as a sub-portfolio of the Ireland Strategic Investment Fund (ISIF).
Any proceeds from the sale of the State's minority shareholding in Aer Lingus will be paid into the Exchequer and the Government has decided that such proceeds should be used to establish a new 'Connectivity fund', as a sub-portfolio of the Ireland Strategic Investment Fund (ISIF).
Under Eurostat rules, the proceeds arising from the sale of the State's shares in Aer Lingus, representing a sale of a financial asset, will have no beneficial impact on Ireland's General Government Balance (GGB). Accordingly, the money received will not provide any capacity for additional Government expenditure on a GGB neutral basis.
It was for this reason that the Government has decided to allocate the proceeds to a special fund, which will operate on a commercial basis and therefore not constitute Government expenditure, but will facilitate the re-use of the proceeds for productive purposes within the economy, on a GGB neutral basis.