Paul Murphy Accuses Government of Siding With Airlines
Paul Murphy challenged the Taoiseach over the government's handling of airline refunds and bailout priorities, accusing the state of siding with airlines and CEOs rather than passengers and workers. He argued for cash refunds for cancelled flights and criticised moves to allow vouchers that would keep consumer money with airlines.
Allegation that government sides with airlines
Murphy said the government's attitude to the airline industry indicates a repeat of past mistakes - bailing out big businesses and CEOs instead of workers. He pressed the Taoiseach on why the government is taking the side of airline companies rather than passengers entitled to refunds for cancelled flights.
Dispute over refunds and vouchers
Murphy accused the government of pushing the European Commission to scrap normal consumer rights and allow airlines to avoid cash refunds by issuing vouchers. The Taoiseach replied that, as far as he understood, the law still entitles passengers to cash refunds and that no formal government decision on vouchers or refunds had been taken.
Government defence of worker-focused measures
The Taoiseach outlined recent measures aimed at supporting people and workers, citing a pandemic unemployment payment of €350 a week, new sick pay arrangements and a temporary wage subsidy scheme that requires firms to pass funds on to employees. He said those actions amounted to bailing out workers rather than company owners.
Calls to renationalise and rethink air transport
Murphy argued airline privatisation has failed, pointing to job cuts at IAG and the threat to Aer Lingus, and proposed renationalising Aer Lingus under democratic worker control to plan sustainable transport and reduce airline travel. He warned that the state is already paying Aer Lingus wages and should not be bailing out private, polluting industries.
Taoiseach on aviation liberalisation and the pandemic impact
The Taoiseach defended aviation liberalisation as having democratised travel and praised Aer Lingus for growth in staff and flights before the pandemic. He said the collapse in air travel is the result of the virus affecting all carriers, and expressed a desire to keep airlines operating into the summer to avoid failures that might require bailouts.
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We are now beginning to see the long term economic impact of this emergency and the question of who will pay is going to loom extremely large. Will we bail out workers or will we once again bail out big businesses? And unfortunately the indication from the government so far in relation to its attitude to the airline industry is that the same mistakes of the past are going to be repeated and that it's the CEOs and the big businesses which will be bailed out. As millions of flights cancelled there's tens of thousands of people who are due and entitled to full cash refunds. The airlines have dragged their feet using all manner of obstructions and the Irish government has now taken the side of the airlines, has pushed for the European Commission to scrap normal consumer rights and allow airlines off the hook. Instead of refunds you want the airlines to be able to keep the cash and issue vouchers instead effectively bailing out the airlines with consumers money. Taoiseach, why are you taking the side of the airline companies instead of the side of passengers? Thanks Deputy, I think if you're fair to us and you look at all the major actions that have been taken by government to date, they have been to bail out people and they have been to bail out workers. We've had a massive expansion of the welfare budget in the last couple of weeks in order to provide the pandemic unemployment payment at €350 a week. Compare that to the United Kingdom and Northern Ireland where it's less than £100 a week or what's happening in other countries. That's a very big bail out of people and workers. Also bringing in sick pay arrangements that we never had before in this country. Again, very much a bail out of people and workers. And also the temporary wage subsidy scheme now being available by 40,000 or 50,000 companies. That money only goes to the companies if they pay it to their workers. Not a bail out of the bosses, not a bail out of the shareholders, not a bail out of the people who own those companies. Money going to companies only to pay a portion of the salaries of their workers. In relation to the airline industry, as far as I understand it, the law is, and the law hasn't changed, that people are entitled to a cash refund. I'll have to check that, but my knowledge is that the law has not changed in that regard. However, we do have to be practical about this. I don't want to see airlines fail. Whether they're publicly owned or privately owned isn't my major concern in that regard. I want to see Ryanair and Aer Lingus operate sometime later in the summer and sometime in August. And I wouldn't like us to be in a situation whereby we end up having to bail out airlines because they fail. You might not be aware, but you're right that that is the law. But your government, with 11 others, have written to the European Commission calling for the law to be changed. I find it hard to believe that you aren't aware that that's the position of your government. The second more general question is precisely about the future of airlines because they are, in a sense, the banks of this crisis. IAG is cutting one third of its jobs in British Airways. They're likely, unfortunately, to move to do the same in terms of Aer Lingus. And so, is it not time now to accept that the privatisation of Aer Lingus has been a failure, resulting in job losses, wage cuts and putting regional airports at risk? We are now paying the wages for Aer Lingus in any case. And so, instead of bailing out private, big, polluting industries, is it not time to renationalise Aer Lingus under the democratic control of the workers? And in that way, to plan for sustainable transport networks, with a significant reduction in airline travel. Thanks, Stephanie. The government hasn't taken any formal position on the matter of vouchers or refunds. And there may be something at department level, so I'll have to check that. But even so, I doubt that any law could be changed retrospectively. I may be wrong about that. But I've never come across anyone changing a consumer protection law retrospectively. It might be changed prospectively, but I don't see how it could be changed retrospectively. But I will get a briefing on that, but there isn't a government decision on it. I think, objectively, the liberalisation of air travel in the world has been an extraordinary success. Just think of all the connectivity that Ryanair provided that wasn't possible when airlines were owned by national governments. How they totally disrupted air travel and democratised it and made it possible for everyday people to afford to fly to all parts of Europe. So I think liberalisation has been a huge success in terms of aviation and socialists have been proved wrong in that regard. I think the success of Aer Lingus has been a real success too. Never had more staff and never had more flights than they have now. What's happened to the airline industry? What's happened to the airline industry is because of a virus. And whether it's a national carrier or a public company or a private company, they've all been downed because of a virus, not because of any ideology. Thank you. Thank you.
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