Joe Costello (Dublin Central, Labour) | Oireachtas source

I thank the Minister for the clarification. He has observed that this is only in the form of a proposal as yet and that no firm formal offer is on the table. Nevertheless, if a deal was done with IAG, it appears that this would mean that it would no longer be possible for the Minister to make appointments, that the three nominees the State is entitled to appoint simply would fall as members. This raises questions about the guarantees. If cast-iron guarantees have been given with regard to a number of undertakings up to five years, who would be able to oversee this on the part of the State? This raises a serious question as to what legal commitments can be made. If there is nobody on the board of directors to put the State's view of the matter, it will have moved entirely out of the hands of the State, which will have no recourse in ensuring the guarantees given are fulfilled. A question is raised as to whether there is anybody on the board of directors who has the State's interests at heart. This is not to say there is no one on the board of directors who does not have the best interests of the company at heart. My understanding is that six of the current board members are perceived to be independent, but it would mean that there would be no one with a foot under the table to speak for the State. The State would have conditionally delivered its 25.1% stake on so-called cast-iron guarantees. There is a serious matter to be addressed by IAG in this respect if it intends to take away the three directors the State has the opportunity and entitlement to appoint at present.

Second, it is my understanding that at present there are only two State directors, whereas there is an entitlement to appoint three.

Does the Minister have any proposals to appoint a third director? Mr. David Begg was in the past a director. Will someone of that stature be appointed to the Aer Lingus board in these interesting times?

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