Madam, - Diarmuid Mac Aonghusa's letter of August 30th is a classic example of the economic stupidity that surrounds the issue of privatising semi-state companies such as Aer Lingus. Without realising it, Mr Mac Aonghusa clearly illustrates the argument in favour of privatisation.
He says the sale of Aer Lingus is "sad and pointless" because the revenue raised by a share flotation will be absorbed by the "costs of funding the pension deficit". If Aer Lingus is not privatised then this significant pension deficit must be paid for by the taxpayer. Does Mr Mac Aonghusa expect the taxpayer to foot the bill for the incompetent financial management of this semi-state dinosaur?
The fact that such a large pension deficit was allowed to develop is in itself strong enough argument for privatisation. Any business leader in the private sector who presided over such financial irresponsibility would be jettisoned by shareholders, and rightly so.
The outdated mindset of Mr Mac Aonghusa needs to be challenged. The reality is that privatisation works. It delivers value and efficiency for the average man on the street. The private sector is the dynamo which is driving our economy; it should not be expected to carry economic dinosaurs such as Aer Lingus. And it should not be held to ransom by the vested interests of unions who represent public sector workers at the expense of the private sector.
Mr Mac Aonghusa's letter shows the folly of those who are wedded to the ideology of state ownership. The government is required to provide essential public services such as health, education, policing, etc. However the supply of a tradable commodity such as air travel is best left to the efficient private sector where the need for profit ensures that there is no room for the inefficiency and waste that are now the defining feature of our over indulged public sector.
It is worth mentioning that the only other countries involved in the state ownership of airlines are Cuba and China. Not exactly shining examples of progressive nations. - Yours, etc,
BRIAN GEOGHEGAN, Temple Manor Grove, Dublin 12.