Dáil debates

Thursday, 12 February 2015

Leaders' Questions

 

12:00 pm

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail) | Oireachtas source

In September 2011, in response to the offer by Ryanair to buy out Aer Lingus, the then Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, outlined the Government's position when he stated: "The Government remains committed to the sale of the stake in Aer Lingus at the right time under the right conditions." The Minister, as the Tánaiste is aware, also stated at that time that the Government's position was that the 25% shareholding by the State in Aer Lingus was not of strategic value. This statement was made against a backdrop of deep concerns expressed by tourism and business interests about the potential loss of connectivity between Shannon and Cork and Heathrow and the potential for reduction in the frequency of services between Dublin and Heathrow. This morning, on "Today with Sean O'Rourke", the chief executive of IAG, Willie Walsh, said that the Government's stated position in selling the shareholding was the reason IAG had entered the marketplace at this time. He and his organisation took some succour from the stated position, and that is the reason we are in this position at the moment. In response to the IAG indicative offer, on 27 January the Government established an interdepartmental advisory group to flesh out the bones of that possible deal. On 1 February, on RTE's "This Week" programme, the Taoiseach stated that he wanted a "cast iron guarantee" on connectivity before the Government would consider any formal offer for Aer Lingus.

When does the Tánaiste expect the advisory group to report to the Government? Is the Government, particularly the Labour Party, still committed to the sale of Aer Lingus, as it was in 2011? In light of Willie Walsh's comments this morning, when he stated that he was prepared to give not just cast iron guarantees on connectivity but cast iron guarantees cased in concrete, are the Tánaiste and the Labour Party happy to proceed with the sale of the State's shareholding in Aer Lingus to IAG?

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