Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 7 and 77 together.

These questions relate to the situation at the Pilot Training College, PTC. This issue arose from the failure of PTC, a privately-owned and operated flight training school, to meet its contractual obligations to its students for the completion of their training.  

The Irish Aviation Authority, IAA, has responsibility for approving and overseeing flight training organisations.  Its primary functions in this regard are oversight of the safety, quality and standard of the training being delivered and the conduct of examinations and flight tests.  It considers issues such as whether the company has sufficient resources to safely provide the training required to the internationally determined standards.  It had no involvement in, or responsibility for, the contractual arrangements between PTC and its students.  The IAA's role is based on European rules. PTC is not, unfortunately, an isolated example. There have been similar failures in other countries in the recent past in respect of which the students involved also suffered losses.  Unfortunately, many businesses have, in the current economic climate, failed, leaving their suppliers and customers out of pocket, including businesses in respect of which a State body has a regulatory role.

In July, the High Court appointed an examiner to PTC Ireland.  The IAA worked with the examiner to assess the options available but unfortunately on 28 September the court ordered the company's liquidation after a final potential investor withdrew.  While I sympathise with the students and their families, many of whom have suffered considerable financial losses through this company's collapse , neither the Government nor the IAA, have any liability in this regard.  The Irish taxpayer cannot be liable for a company’s debts simply because it had approval of some form from a State agency.

See this speech in context