Labour conference set for debate on IAG’s Aer Lingus bid

Joe Costello among TDs seeking to put forward motion on takeover

TDs in constituencies where many Aer Lingus workers live fear losing votes if there is negative fallout from an IAG takeover. Photograph: Aidan Crawley/Bloomberg
TDs in constituencies where many Aer Lingus workers live fear losing votes if there is negative fallout from an IAG takeover. Photograph: Aidan Crawley/Bloomberg

Labour TDs are to seek a debate on IAG's €1.36 billion bid for Aer Lingus during its conference next weekend.

The party’s Ministers and Dáil deputies are known to be largely opposed to a sale of the State’s 25.1 per cent stake in the airline, as they fear jobs and services from regional airports will be lost if IAG takes it over.

TDs from north Dublin, where many Aer Lingus workers live, and constituencies close to Cork and Shannon airports, are also concerned they could lose votes if a transaction results in any negative fallout.

Dublin Central TD Joe Costello confirmed he and a group of colleagues are planning to call for an emergency debate at the party’s annual conference in Killarney next weekend.

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Any debate will draw in the party's trade union affiliates. Siptu official Owen Reidy, responsible for members working at the airline, said he was aware that a number of branches wanted the IAG approach to Aer Lingus raised.

If Labour’s opposition were to harden as a result of the discussion it could prevent a sale of the State’s shares. This would effectively halt a deal, as IAG has made any offer for the airline conditional on the Government’s acceptance.

Oireachtas committee

Its chief executive,

Willie Walsh

, confirmed this position when questioned at the Oireachtas Joint Committee on Transport and Communications last week.

Mr Costello said on Thursday that he is one of a group of seven parliamentary party members who are working on an emergency motion they intend to table at the conference.

“It won’t be finalised until very much closer to the conference,” he said.

Aer Lingus is not on the conference agenda. However, a Labour spokesman confirmed the party is expecting at least one emergency motion to be tabled and is likely to allow the debate to go ahead.

Mr Reidy repeated Siptu’s position the Government must get guarantees on jobs and on “macro issues” such as the future of the airline’s valuable Heathrow rights.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas