Bernard Durkan (Kildare North, Fine Gael)
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Question 45: To ask the Minister for Transport the extent to which he has had recent discussions with Aer Rianta or Aer Lingus with reference to the future of air transport; and if he will make a statement on the matter. [12537/04]

Bernard Durkan (Kildare North, Fine Gael)
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Question 214: To ask the Minister for Transport the position in regard to the future of Aer Lingus; and if he will make a statement on the matter. [12711/04]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 45 and 214 together.

My Department is engaging in an ongoing process in Aer Rianta in connection with the Government's decision of last July to restructure the company. I will expand on this process in my replies to more specific questions tabled today. With regard to Aer Lingus, my Department is in regular contact with the company about a range of matters, including its performance in the future.

With regard to the future options for Aer Lingus, I have previously advised the House that in light of the continuing turnaround in the company's finances and the continually changing environment, last July I asked the chairman of Aer Lingus to examine and report back to me on the future options for the company. At a meeting on 16 September 2003, the chairman furnished his report to me in which it was indicated that a private sector investment process should be initiated without delay. I also commissioned an independent corporate finance consultant to examine the sale options for Aer Lingus, taking account of the Aer Lingus report. In summary, he has supported the mechanisms proposed in the chairman's report.

I recently advised my Cabinet colleagues of the current state of my deliberations concerning the future of Aer Lingus. I also advised that I will be reverting to Government on specific options for the company in the near future. My deliberations involve detailed consideration of the reports from Aer Lingus and the independent corporate finance consultant as well as a thorough examination of all options for the future of the company.

Bernard Durkan (Kildare North, Fine Gael)
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Will the Minister indicate what discussions he has undertaken with the various parties involved? The unfortunate history in this area shows that discussions appear to take place after the event rather than before it and the Minister will be aware, as an experienced Member of the House, that it is better to have discussions before the event rather than after it. Could he also indicate the extent of the discussions with management and the workforce in both Aer Lingus and Aer Rianta, if they have taken place?

Séamus Brennan (Dublin South, Fianna Fail)
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There has been considerable discussion between myself, my officials and the chairmen of both organisations. Discussions with management have occurred on a regular basis and almost weekly in recent weeks in the case of Aer Rianta. There are ongoing discussions. It is usually better to have discussions before making a decision——

Bernard Durkan (Kildare North, Fine Gael)
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That is usually the approach.

Séamus Brennan (Dublin South, Fianna Fail)
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——but sometimes one must make the decision first.

Bernard Durkan (Kildare North, Fine Gael)
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And have the discussion afterwards?

Séamus Brennan (Dublin South, Fianna Fail)
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Yes.

Bernard Durkan (Kildare North, Fine Gael)
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That is a funny way to do business.

Denis Naughten (Longford-Roscommon, Fine Gael)
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I suppose it is important for the Minister to make the decision when a microphone is shoved in front of him. It is important to make a comment on it, at least.

Séamus Brennan (Dublin South, Fianna Fail)
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The Deputy is not shy either.

Denis Naughten (Longford-Roscommon, Fine Gael)
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What discussions have taken place on the privatisation of Aer Lingus and when does the Minister hope to make a decision on it? Has he discussed the timetable with Aer Lingus? Has the Minister raised with the company the downgrading of the level of service being provided by Aer Lingus at Shannon Airport? Has the Minister discussed the scandal of pilots being paid to stay at home rather than come to work? Does the Minister not consider that a serious misuse of State moneys?

Séamus Brennan (Dublin South, Fianna Fail)
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With regard to Shannon, that is a matter for the board and management of the company in the context of how to run the company commercially.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Deputy McDaid would like a more specific comment, particularly in the next few weeks.

Séamus Brennan (Dublin South, Fianna Fail)
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I read a reported statement from the chief executive in the newspapers that he was working to resolve the issue regarding the pilots. He said it was not sustainable and I agree.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Everyone would agree with that.

Séamus Brennan (Dublin South, Fianna Fail)
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With regard to discussions on Aer Lingus, the chairman, the chief executive, my Department's officials and I have had a number of discussions over the past year on the future of the airline. There have also been some discussions at departmental level with trade union interests but I have not yet put any proposal to Cabinet. I will certainly have discussions with all concerned in the event that I decide to do that.

Róisín Shortall (Dublin North West, Labour)
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In respect of Aer Rianta, on 18 March we were within hours of having all the airports closed as a result of industrial action. That action was threatened because of a breach of faith by the Minister, according to workers' interests in the airports. The industrial action was only called off following the intervention of the Taoiseach. The workers were no longer willing to take the Minister's word. The Taoiseach intervened on 17 March and gave a clear undertaking to the workers that the business and commercial information associated with the proposed break up of Aer Rianta would be made available to the unions at an early date. He specifically gave an undertaking that he would provide ample time for consideration of those figures prior to the publication of the State airports Bill.

It is six weeks since the strike was called off. The Minister says he intends to introduce this legislation before the end of this session, which is the beginning of July. That does not leave much time for the unions to consider that information. It has been suggested that the Minister is trying to provoke strike action by his behaviour. Why has the information not been provided? What is the reason for the delay? When does the Minister expect to make that information available to the unions, as promised by the Taoiseach?

Eamon Ryan (Dublin South, Green Party)
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With regard to the sale of Aer Lingus, has the Department carried out an analysis of whether a trade sale of part of the company or a public offering of part of the shareholding in the company is the preferred option? What is the Minister's preference between those two alternatives or is there another option for the sale of the company?

Séamus Brennan (Dublin South, Fianna Fail)
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My Department has provided the financial information to the financial advisers for the trade unions and to identified trade union officials, in view of the commercial sensitivity of some of the information. I look forward to taking on board, in so far as I can, what the unions suggest.

Róisín Shortall (Dublin North West, Labour)
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What timeframe is the Minister allowing for a response?

Séamus Brennan (Dublin South, Fianna Fail)
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I have asked that they come back to me in the next two weeks with their views on the financial information. The information is straightforward. It is laid out in working papers prepared by PricewaterhouseCooper and other financial advisers. It indicates projections for the three airports. The information is not a great secret in many ways. It indicates that Shannon and Cork airports will continue to be under pressure, which is the reason I want to do this. They should have a fresh start. It also indicates that Dublin Airport is under performing in terms of revenue with the number of passengers increasing and profits decreasing. There is, therefore, a need for action. I hope to take on board, in a sensible way, the reports from the trade unions.

I am not trying to provoke industrial action. At the same time, however, I will not be intimidated by suggestions of action.

Róisín Shortall (Dublin North West, Labour)
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Why was there a six-week delay?

Séamus Brennan (Dublin South, Fianna Fail)
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I do not wish to provoke it.

With regard to Aer Lingus, we have considered a number of mechanisms and we have taken advice. That process is continuing.