asked the Minister for Transport and Power if he is aware of the widespread alarm in the privately owned catering firms who cannot compete against Aer Lingus which is backed by public money; if it is the policy of the Government to permit such competition which will cause unemployment in the private sector and lead eventually to the position in which a semi-State body could obtain a monopoly of the catering business to the detriment of private interests; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Catering Business.
27.
I am not aware of any such alarm by privately owned catering firms nor do I accept the suggestions in the second part of the Deputy's question.
Is the Minister not aware that Deputies of this House have been circularised in relation to this type of competition from a State-aided company against people who are providing the taxation to carry on this firm? Does the Minister consider that it is fair competition?
I understand this is a service that is provided entirely on an economic basis. The share of the overheads which are paid in connection with the operation of catering services is satisfactory. The Minister is quite satisfied that the airline do not obtain their business by unfair competition or by price-cutting. The catering business of Aer Lingus operates at the top level of provision of service, where quality and service are the main criteria. Any Deputies who have ever been present at catering which has been carried out by Aer Lingus will know this. There is ample opportunity for business in catering in Dublin and elsewhere. It is a booming business, and certainly in regard to the top level share of the business I am satisfied, the Minister is too, that Aer Lingus are not undercutting in an undesirable way by not including overhead charges or other costs which they should include in the accounts.
Is the Minister aware that a private individual does that catering for Aer Lingus on a contract basis?
I am aware that Aer Lingus are in contact with——
A private individual caters under contract for Aer Lingus.
The Minister agrees that Aer Lingus is a subsidised semi-State organisation, and it is competing in business against the people who are providing the money to give them this subsidy. This is the complaint that has been sent around to us all.
My information is that they do not obtain their business by unfair competition or price-cutting.
It is unfair because they are subsidised.
The catering services are not subsidised. I am also satisfied that the catering services part of Aer Lingus is not subsidised by public money. Aer Lingus, for example, pay over £100,000 per annum to Aer Rianta for the catering building. That is the information I have, and having had long experience of this in a previous position I am satisfied that the situation is as stated in the reply to this question by the Minister himself, and it also applies to activities of other State companies.
Question No. 28 postponed.