Pat Gallagher (Donegal South West, Fianna Fail)

The Government's overarching objective is to provide the company with access to new equity to enable Aer Lingus to compete effectively and fund the growth of its business. Through the IPO, the company now has new equity in the order of €500 million. Some €104 million goes towards the pension funds and there will be an additional €400 million plus to go to the business plan and to fund the future development of Aer Lingus.

Deputy Crowe referred to the reduction, which will happen tomorrow, from 28.3% of our capital in Aer Lingus to approximately 25.4%. I presume the Deputy knows the reasoning behind that. Before the IPO, the employee share ownership trust had 12.6% of Aer Lingus and with the new shares that would have reduced to 7%. The trust holds €30 million and it is using that to buy up further shares in the company which will bring it back up to the 12.6% level. We facilitated that option to permit the trust to purchase the additional shares and return it to the previous level.

The strategy is of course to ensure we have an airline that will compete effectively. We will not be involved in its daily running. We will hold 25.1% — I do not want to delay the House as I gave all the good reasons for that. It will ensure safeguard arrangements are in place. Not alone have we done that but we have built them into the company's memorandum and articles of association. We also ensured that a body cannot secure 75%, which would result in delisting.

The discussion of the strategy in the House is a matter for the Whips. If it is raised by question or by way of general debate, I will be only too happy to address the issues.

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