State inaction protected Aer Lingus shares, says FF memo

Fianna Fáil has claimed in private briefing notes that the Government's refusal to interfere with Aer Lingus's decision to end…

Fianna Fáil has claimed in private briefing notes that the Government's refusal to interfere with Aer Lingus's decision to end its Shannon-Heathrow service protected the airline's share price during a turbulent week for the stock market.

A document circulated by Fianna Fáil headquarters to TDs and councillors in the west also advises that the Shannon-Heathrow route has been in decline for the last three years.

Additionally, it seeks to play down the impact of its loss on tourism and jobs.

On the issue of the company's stock price, the document, entitled Key Facts on Shannon/Heathrow Issue, reports Irish shares fell by 2.65 per cent, while Aer Lingus's rose by 0.83 per cent during a difficult period for the stock market.

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"The Government response has protected the investment value of the independent shareholders, the staff and pensioner shareholders and the Government's own shareholding," it says.

Clare-based Fianna Fáil TD Timmy Dooley dismissed the briefing note as "disingenuous spin", while local campaign groups said it was an attempt to play down the scale of the crisis facing the mid-west.

A spokesman for Fianna Fáil last night confirmed that it sent out the circular as an informative guide for local representatives.

It is understood that most of the information was obtained from the Department of Transport.

However, Mr Dooley said: "It is a further insult to industrialists in the region that, over two weeks into this crisis, Minister Dempsey has not visited the region and instead is being protected by dubious statistics to substantiate the Aer Lingus withdrawal of services."

It was his information that while some of the statistics circulated by party headquarters were "sound", others did not stand up to scrutiny.

"It would be more in line for the Minister and his officials to come down to the region and engage in face-to-face talks with industry and other key stakeholders than trot out this type of spin."

A spokesman for the Atlantic Connectivity Alliance said there had first been silence from Mr Dempsey and then he had come out with a statement that industry across the region was exaggerating the effect of the Aer Lingus decision.

"Now his office comes up with statistics that do not stack up in an effort to win the argument.

"This shows that the Minister and his officials are clearly out of touch with the mood down here and the repercussions this is going to have for the regions."