Noel Grealish (Galway West, Progressive Democrats)

I am glad to have a few moments to speak on this important issue. While I wholeheartedly agree with the commendation of Aer Lingus in the original motion, the absence of detail in any action proposed by Sinn Féin is worrying, if not surprising.

The Government considered the future of Aer Lingus for some time. Last summer, a special Cabinet sub-committee was established and a report on future options for the company was prepared by Goldman Sachs. The key concern has correctly been to provide Aer Lingus with the necessary sound footing for a successful future which entails access to capital. Despite the inaccurate and often vague assertions of the Opposition, the plan announced last week provides for the future growth and stability of Aer Lingus.

Aer Lingus requires funds to support profitable growth and to ensure financial stability. We must all support the company in its pursuit of growth and to realise the significant potential it has identified on long haul routes. That was the immediate challenge facing Government and is addressed by the package announced last week.

Aer Lingus needs an appropriate cost base and access to funds to finance aircraft acquisitions if it is to take advantage of the potential it has identified. Last week, a decision in principle was made to sell a majority shareholding in Aer Lingus to provide these funds. While some Opposition Members claim that this leaves the airline open to exploitation, the State will retain a significant stake to protect Ireland's key strategic interest. Appointed advisers will give direction on the size, type and timing of the Aer Lingus sale transaction and I believe the intention is to move quickly to engage these advisers and to consult Aer Lingus and staff on the investment needs.

The most appropriate transaction mechanism to raise these funds will be selected, having due regard to a range of key issues, including the achievable price. The most important aspect of the process will be meeting the company's needs. In the timing of the proposed transaction account will be taken of that need as well as market conditions and the state of the aviation sector generally.

Much of the debate that followed the announcement of the aviation package last week has been on strategic issues, specifically the slots at Heathrow. Every possible option within the regulatory framework will be examined to guarantee that Ireland's travelling public have ongoing access to Heathrow Airport. These options may well include specific shareholder agreement covenants or commercial arrangements between the State and Aer Lingus. The State will still maintain a significant minority stake in the company, and the best interests of Aer Lingus, its workers and customers will dictate action in this area. This is the correct and most suitable course of action.

Sinn Féin, Labour and some others in this House may not share the confidence of Aer Lingus that there is massive growth potential for the airline. That is unfortunate. We, on the other hand, recognise and must facilitate that growth. One thing is certain, the Marxist policies proposed by Sinn Féin will not facilitate it. Fine Gael support the sale of a majority share but is not inclined to oppose moves to facilitate it. Labour proposes that the State get into the business of buying aeroplanes to facilitate it. Facilitating the growth of Aer Lingus should certainly not be placed in the hands of those on the benches opposite.

Only by implementing in full the existing business plan will Aer Lingus receive the appropriate cost base to support a sustainable growth plan. That is the reality. The State is not acting in isolation or in a vacuum on this issue. The management and staff of Aer Lingus must work together to achieve the desired growth and stability. The State must, and does, support effort in this area.

Aer Lingus must be able to compete properly and grow both on short-haul and long-haul routes. This can only happen with access to the required funds and continued progress towards greater productivity. The aviation package announced last week makes such progress possible and this can only be welcomed.

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