asked the Minister for Transport and Power the reasons for the drastic economy drive announced by Aer Lingus; if it will result in redundancy; if he will make additional financial assistance available to the company to enable them to overcome present difficulties; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Aer Lingus Economy Drive.
12.
In order to maintain steady growth and development Aer Lingus at regular intervals reviews its competitive position and all its costs. Aer Lingus has stated that the airline will meet all its obligations under its salary/wage agreements and that no redundancy is likely. At the present time Aer Lingus is setting its budget programme for the coming year and the airline can be depended upon to exercise prudent control of costs and at the same time continue its policy of concern for the wellbeing of all its staff. The question of financial assistance does not arise.
In view of the fact that most of the difficulties which Aer Lingus seem to have arise on cross-channel and continental services, I would like to ask the Minister is he aware that there is considerable criticism, particularly of cross-channel services and that this criticism is based on two factors. One factor is that the fares on cross-channel routes are very high and the other is that the departure times of many of the scheduled services are not suitable and seem to be geared to fit in with the transatlantic run rather than to cater for the ordinary passengers and, particularly, for the tourists. I am sure the Minister is aware of this because I have had many complaints. Would the Minister comment on these points and would he undertake to investigate the position?
I will investigate what the Deputy is alleging without having any view on it myself, because of all the State companies Aer Lingus and Aer Rianta have proved outstanding from the basic criterion of commercial profit in a highly competitive field.
(Interruptions.)
Tell that to somebody else.
Order.
Deputy Tully, as a member of the socialist party, wants us to get out of supporting State industry. The Deputy is entitled to his opinion.
I want the Minister to tell the truth, the whole truth and nothing but the truth.
I will give the exact figures in regard to the operating profits. There was a combined operating profit of £1.75 million for 1968-69, £1.20 million for the previous year and in the coming year the operating profit will be of the same order.
What is the return on capital?
I want to give the capital position. Aer Lingus/Aer Rianta have been in a position by reason of their excellent financial structure and their highly commercial way of operation to get £27 million by way of borrowing abroad out of the £71.5 million which they will need to refurbish their fleet and introduce a highly competent new fleet of two Boeing 747 Jumbo Jets and eight 737 Jets. The cost will be £71.5 million, of which £27 million has been supplied by people outside the State who are only interested in the status and stability of a company from a purely professional criterion.
Nobody is saying anything against Aer Lingus. We are saying the Minister's answer to the question was not a proper answer. What is the return on the total capital put into Aer Lingus and Aer Rianta? The Minister still has not answered that.
That is a separate question.
I will answer that when Deputy P. Belton addresses the question to me in a civilised manner.
(Interruptions.)