Martin Cullen (Waterford, Fianna Fail)

The Government's intention is to retain a significant shareholding in Aer Lingus so that key strategic interests can be protected. In this regard, the State will retain a minimum shareholding of at least 25.1% in the company, although the exact figure still has to be decided. This is significant because a minimum shareholding of 25.1% in a public company ensures the holder of that interest significant influence over matters requiring shareholder approval. It provides a basis on which to establish board representation. Ownership of more than 20% of the issued share capital of a company would, as the House knows, prevent a third party from compulsorily acquiring 100% of the company.

The question of the level of the shareholding to be retained by the State in the longer term will be a matter for future governments. However, this Government has a clear commitment to retaining at least 25.1% of the company's share capital.

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