Dáil Éireann Debate, Wednesday - 3 May 2006
146 Mr. Noonan asked the Minister for Transport if a decision has been reached in relation to the Aer Lingus pension fund deficit; if the Government is prepared to contribute to this fund to meet the deficit; if so, the extent to which it will contribute; and if he will make a statement on the matter. [16268/06]
Amharc ar fhreagra159 Caoimhghín Ó Caoláin asked the Minister for Transport the measures which have been discussed to address the €250 million pensions shortfall in Aer Lingus. [16178/06]
Amharc ar fhreagraI propose to take Questions Nos. 146 and 159 together.
As the Deputy will be aware, I have no direct function in relation to the funding of the pension schemes in which Aer Lingus participates. I understand that, on the basis of the most recent actuarial valuation, the Irish Airlines Superannuation (General Employees) Scheme is in deficit if provision is to be made for future increases in pensions to reflect growth in the Consumer Price Index (CPI). I also understand that, under the rules of the Scheme, there is no guarantee in relation to the granting of increases in pensions. Such increases are entirely at the discretion of the Trustees of the Scheme. If no such increases were to be paid then the Scheme would in fact be in surplus.
In the context of the planned IPO of shares in Aer Lingus I have said that the Minister for Finance and I are open to considering the question of the company using part of the proceeds from issuing new shares to address the funding position in the company's pension scheme in the context of an overall solution involving increased employer and employee contributions going forward. I have mandated Aer Lingus management to engage with the trade unions to address the key concerns of staff in relation to a third party investment, including pensions.
