Dell plans closure of Limerick plant-Sunday Business Post Report

An article in the Sunday Business Post reports that:

Up to 2,000 job losses are expected at Dell in Limerick in the new year when the computer firm announces its intention to cut back manufacturing in Ireland.....

Unemployment in Limerick has risen from 7,630 in November 2007 to 12,886 in November 2008- an increase of 69%. In addition the decision by Aer Lingus to discontinue the Heathrow service is a further blow to the economy of the Mid West region. It is an open secret that Dell was considering its options. Nevertheless the loss of 2000 jobs at Dell-if realised- would be catastrophic.

Ireland - The politics of spin

Increasingly in Ireland we are governed by the politics of spin. Willie O Dea spoke about Armageddon when he criticised the axing of the Shannon- Heathrow route by Aer Lingus.

Similarly other FF TDs and councillors in the Mid West rushed to the media to lambast the decision. Noel Dempsey Minister for Communications is confident that no FF TDs will break ranks in the Dail and vote against the Government on the issue. The Government refuses to call an EGM of Aer Lingus shareholders. If this is Armagheddon Willie O'Dea and other FF TDs have no option but to vote against the Government. Of course this will not happen. At local level FF TDs are against the decision. In the Dail they vote for it. They are pretending to do something about the Aer Lingus decision. They are not serious.

Now apparently John Gormley of the Green Party and Minister for the Environment is opposed to incineration. Yet he is a member of a government that has incineration as a fundamental plank in its environmental policy. He is learning quickly from his FF colleagues. Mr Gormley admitted that changes he proposed could make incinerators less financially attractive for developers. However, he said the existing policy gave undue incentive to for these facilities to be used.

He knows quite well that he has little prospect of derailing the governments incineration policy. The FF and PD Ministers support it. He will be outvoted at Cabinet level. He is engaged in the politics of spin. He is pretending to do something about incineration.

Ireland-Why FG is consistent on Shannon to Heathrow issue

When the Government decided to part privatize Aer Lingus it justified its decision on the basis that the national interest would be protected by the retention of a 25% shareholding. It is in the national interest that the Aer Lingus maintains the Shannon to Heathrow route. So there is no contradiction in FG's stance of opposition to the Aer Lingus decision to axe the Shannon to Heathrow route. It is now calling on the Government to use the 25% shareholding in the national interest as was promised at privatisation. Multinational Companies, tourist interests and the general public in the Mid West are up in arms over this. These groups are not card carrying Socialists.

IF Aer Lingus were a fully privatized company and if FG voted for full privatisation then FG could not justify any attempted state interference. The State is still a large shareholder so it is as entitled as any other shareholder to defend its interests. A certain bogus orthodoxy appears to have developed around this issue. It is claimed that this smacks of socialism. Not so. If the FF-PD-Green Party Coalition has no intention of using the 25% state shareholding in the national interest, it should sell it.

Aer Lingus rejects request for EGM

It is hardly surprising that the board of Aer Lingus has rejected a request from Ryanair to hold an Extraordinary General Meeting of shareholders. It was never likely to provide a platform for its competitor and arch critic Michael O Leary. The Ryanair boss is unlikely to accept this decision without a fight.
Of course the Government itself with its 25% share holding could call an EGM. This will not happen as indications -from Government sources- are that the Government will not intervene to alter the commercial decisions of a private company.
Promises given prior to privatisation have been quietly binned. The retention by the Government of the 25% share holding was supposed to protect the national interest. In reality it was a sop to mollify opposition. The Government must now use the 25% shareholding or else sell it. FF-PD Governments have a strong record of selling the family silver.

Enda Kenny the Fine Gael leader said his party will fight to ensure there will be an ongoing air service between Shannon and Heathrow.
Government deputies from the Mid West face grave embarrassment in the Dail when the opposition puts down a motion calling on the Government to maintain the Shannon to Heathrow route. Willie O Dea's bluff will be called. Jackie Healy Rae will rave and rant and then vote with the coalition.
Put up or shut up time is rapidly approaching for government politicians.

Shannon to Heathrow issue-press release

A press release from the Department of Transport following a Cabinet meeting on the Shannon to Heathrow issue states:

"It was agreed that the Minister for Transport, on behalf of Government, would do all in his power to assist the Shannon Airport Authority to secure alternative London Heathrow services."

This means that the Government will not use its 25% share in Aer Lingus to save the Shannon-Heathrow route. It will vote to support the company's decision to axe the route. Over the last few days there have been judicious leaks from government sources geared towards softening up public opinion in the West and Mid West.

The newly-formed Atlantic Connectivity Alliance also sent a fact file to each minister detailing the implications to business and tourism.

A representative of the Alliance was interviewed on RTE News tonight. He sounded enthusiastic about the Government's attitude to the Mid West.

No wonder Noel Dempsey is not too worried. Representatives of the Alliance should spare their enthusiasm for concrete actions rather than woolly promises.

Others from the Mid West were not as enthusiastic and were quite critical.The Government appears to have neutered the opposition of the Atlantic Connectivity Alliance whilst there is no prospect of FF TDs in the Mid West voting en bloc against the Government.

A serious threat by the FF TDs in the Mid West to bring down the Government on the issue could achieve the desired result of restoring the Shannon to Heathrow route. The FF TDs in the Mid West are not serious. The Government knows this.

The score stands at FF 1 Mid West 0.