AA `windfall' for 80,000

Just 80,000 of the 185,000 Irish members of the Automobile Association are to benefit from the payment of £240 sterling (£290…

Just 80,000 of the 185,000 Irish members of the Automobile Association are to benefit from the payment of £240 sterling (£290) through the proposed takeover of the group by the British group Centrica.

Only members who pay their own subscriptions are eligible to receive the payout, according to the AA. Those who became members as part of a deal offered by a motor manufacturer, company car fleet scheme or a bonus for membership of a credit card will not qualify.

Associate members, such as those covered by the AA as part of someone else's membership, such as a spouse or other family members, will also be excluded.

"The easiest way to explain it is that anyone who actually pays a subscription themselves to the AA will be eligible," said an AA spokesman.

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Some 4.6 million of the AA's 9.5 million members internationally will qualify.

Documentation on the deal will be circulated to shareholders in August and if approved, qualifying members could expect to receive their payment in October.

The payout is part of a £1.1 billion sterling deal to sell the motoring group to Centrica, the group which owns British Gas. It must be approved by two-thirds of the AA's 4.6 million members.

The combined entity will create one of the world's leading home and motoring services providers, with an annual turnover of over £1 billion. While cutbacks are expected in the UK, AA's 300 Irish staff are not expected to be affected.

Centrica, which supplies electricity to consumers and owns the Gold Fish credit card, has pledged to keep the AA brand and maintain its roadside recovery standards and its role as an independent voice for motorists.

The companies said they did not envisage the deal facing any regulatory hurdles and hoped the sale would be complete by the end of the year.

The Automobile Association was formed in June 1905 when 90 motoring enthusiasts met in London. Its initial aim was to help motorists avoid police speed traps.