Leo Varadkar (Dublin West, Fine Gael)

I propose to take Questions Nos. 11 and 22 together.

The Deputies' questions relate to the State's shareholding in Aer Lingus. Two working groups were established by the Government in 2011 on State asset disposals, one to consider the best approach in progressing the proposed part-sale of ESB, and the other to undertake a similar analysis of a number of other State assets identified by Government as potential candidates for disposal. The State's remaining 25% shareholding in Aer Lingus was considered as part of this group of assets. Both of these working groups completed their work in 2011 and reported to Ministers in December 2011. NewERA was centrally involved in this process together with all relevant Departments including mine. It was on the basis of the analysis undertaken by these two working groups that the Government agreed to the list of asset disposals announced on 22 February.

In relation to Aer Lingus, the Government considers that the State's remaining shareholding in the company is no longer a strategic asset as it does not enable the Government to determine Aer Lingus policy on issues such as the use of the airline's landing slots at Heathrow Airport. Accordingly, the Government has decided that the State's remaining shareholding in Aer Lingus will be sold at an appropriate time, but only when market conditions are favourable and at an acceptable price to be agreed by Government.

My Department is working in conjunction with the Department of Public Expenditure and Reform, and NewERA, to examine the potential options for the disposal of the State's stake and the issues that may need to be addressed in the context of the disposal of the stake.

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