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

There are a few relevant points. PTC's accounts were signed off, without qualification, on 29 August 2011 by professional auditors. The accountants were satisfied that "the group, including PTC, will continue as a going concern" and they stated the directors are satisfied that sufficient financial resources are available to the group from its budgeted profits, banks and shareholders. The Irish Aviation Authority reviewed the company's financial projections for 2011-13 and its projected profits for each year to the end of 2013. As recently as early June 2012, the authority met PTC's CEO, who assured it that the company had sufficient funding in place until at least the end of 2012. It is worth pointing out in this regard that, had the authority come to a decision that the college did not have sufficient resources – there is no evidence to suggest it – the only action open to it would have been to de-recognise the college and require it to cease trading. Therefore, those affected would be in exactly the same position as they are now. The problem would simply have arisen a few weeks earlier.

A Government regulation is not the same as a bond or guarantee. If an airline or travel agent fails, customers are protected because of the bond. There is no bonding system in these circumstances. Perhaps we need to consider this. We cannot make provision retrospectively.

As with me, I am sure the Deputy has constituents who have been burned by this problem. We all have considerable sympathy for those affected. In some cases, they are losing a lot of money because of what has happened. One should bear in mind that they are not the only creditors. If the Government were to decide suddenly to compensate the creditors, including the very large number of foreign students, airlines and the business in Florida, it would have to compensate them all on the same basis. This would cost the taxpayer millions of euro in this case alone and set a very significant precedent for future cases. Ultimately, I have no money. The only money I have is money that belongs to the taxpayer. It would be irresponsible of me to offer compensation in this case or any similar case.

Clearsky Pilot Training College Limited has been established and registered at the same address as PTC. Following the reports, the Irish Aviation Authority inspected the premises of the company on 4 October last. The new company was providing refresher training for an international non-EU client. The training does not meet the standard required for an Irish or EU pilot licence. Should the new entity wish to provide training meeting EU standards, it, like any other company, will have to apply to the Irish Aviation Authority for approval. To date, the authority has not received any such application.

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