Brian Cowen (Laois-Offaly, Fianna Fail)

Under State ownership Aer Lingus and other companies have suffered job losses, so maintaining State ownership is no guarantee of job security. This strategic plan by the board of Aer Lingus required the sale of shares so it could get access to private equity and leverage for the acquisition of planes and other equipment to develop a long-haul strategy, which can provide greater tourism numbers for Ireland and greater profits for Aer Lingus. That is why the part privatisation took place and the IPO was made. It was successful in its own right. The Opposition presumes that a successful takeover of Aer Lingus by Ryanair is imminent. That is not the position. In relation to the retention of strategic shareholding by the Government, we are in a position to protect the strategic concerns in the national interest in respect of Aer Lingus. We have not welcomed the proposed purchase by Ryanair of a majority stake. There are regulatory frameworks to deal with competition and other questions. There are many obstacles to be overcome before people can draw the conclusions that the Opposition is drawing. We have made a strategic decision that has been successfully completed in terms of the IPO. It is in line with the board's requirements to implement the strategic plan. It provides access to funds to which the airline would not otherwise have access, to develop and build the airline and to protect jobs. Without that investment strategy the future of Aer Lingus in terms of where it stands in the aviation market would be more precarious than would otherwise be the case. Those are the facts and no scaremongering by Deputy Joe Higgins will change them.

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