Brendan Howlin (Wexford, Labour) | Oireachtas source

As the Deputy will be aware, the programme of State asset disposals agreed by the Government in February 2012 included, inter alia, the disposal of the State's remaining shareholding in Aer Lingus. However, I made it clear at that time that a disposal of the Aer Lingus shareholding could only take place when market conditions were favourable and in circumstances that accorded with Government transport policy, as well as at an acceptable price for the taxpayer and the Government. This has continued to be the Government's consistent position since 2012. The Deputy also will be aware that following the announcement of IAG's approaches to Aer Lingus, the latter is now in an offer period under the Irish takeover rules. These rules impose a range of specific obligations on Ministers, as shareholders in Aer Lingus, including obligations of confidentiality and obligations to ensure statements made in connection with the offer are accurate and not misleading. These obligations are particularly acute for the Government given the pivotal role the State has regarding any proposed bid for Aer Lingus.

The Government has made clear, through statements made by the Minister for Transport, Tourism and Sport, that the key issues of concern in the context of any potential disposal are connectivity to and from Ireland, including direct transatlantic services and connectivity via Heathrow, competition in the air transport market, jobs in the Irish aviation sector and the maintenance of the Aer Lingus brand. In that context, the Minister for Transport, Tourism and Sport announced last month that the information and commitments that had been provided by IAG on these issues did not provide a basis on which the Government could give an irrevocable commitment to accept an offer to dispose of its shares, should one be made by IAG. The interdepartmental steering group, of which my Department is a member, was mandated to continue discussions with IAG with a view to seeking an improved proposal with greater clarity and certainty regarding the implications of a potential takeover on the key issues I have outlined above.

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