Bertie Ahern (Dublin Central, Fianna Fail)

I do not think either of those are the basis of the debate. Whatever about earlier arguments, I have been engaged and involved with Aer Lingus for a long time. I was the last Minister for Finance to invest substantial resources in Aer Lingus to keep it flying at the time and to allow it to buy the Airbuses which was a big modernisation issue. As Taoiseach I was involved in the effort following 11 September, which was no fault of the company, when the aviation business worldwide slumped to the bottom and where strong airline companies were going to the wall, to try to work with the staff interests to protect it and keep Aer Lingus flying. I have long been a supporter to try to strategically help Aer Lingus. We spent the period from 2003, after that last plan, up to 2005 deciding how best to allow the development of Aer Lingus into the future. I accept the sale or part sale of a State company is a big decision. The Government decided to allow the sale of a majority shareholding in Aer Lingus a year ago to facilitate an equity injection into the company while retaining a significant stake in the company to protect the State's key strategic interest. That was part of the decision yesterday.

Following consideration of the report received from the advisers who worked on this during the past year, following the two years' work put in by the Government, and following agreement with the Minister for Finance on the matter, the Minister for Transport presented the case to Government yesterday on the implementation of the investment transaction. In line with the Government decision of last year a majority of the Government's shareholding in Aer Lingus will be sold. This will be done through an initial public offering of the company's shares on the Stock Exchange. The State will retain at least 25.1% of the company to protect the State's strategic interest. It is important that is done.

The Minister will mandate our advisers to commence work on the implementation of the IPO. The Minister has also advised us of the outcome of the consultations with the trade unions on investment transactions. Understandably there are a number of issues of concern they wish to see addressed, following long discussions with the Minister for Transport. Job security and pensions are the two major issues. The Ministers for Transport and Finance have mandated the management of Aer Lingus to engage with the trade unions with a view to resolving the issues identified by them. Hopefully, through this process, we can find a way forward to allow the staff's interests to be addressed to the maximum extent possible. That is the background. It is not a question of what the Government can or cannot do. It is a question of allowing Aer Lingus with the State still being involved, to develop into being a stronger airline than it has been in the past. Twice in the past decade Aer Lingus almost went down. This, based on all the best advice, is the way to allow it get available funding in the financial markets, to have additional aircraft, to help the financial strength of the company, to grow into the future and to implement its own business plan. To do otherwise, would be to reject the best advice available to us. Deputy Rabbitte will appreciate that the Government could do that. I could do that and say we do not accept the advice of the management, and for that matter, the last management, the board, the advisers or our Government people and go a separate road on which nobody has advised.

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