Enda Kenny (Mayo, Fine Gael)
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It is less than a year since the tragic bus accident in Navan in which five young teenagers lost their lives. It is appropriate that we begin by expressing our sympathies to the parents and friends of the pupil from Killina Presentation secondary school in Clara, County Offaly, who unfortunately died and to those who were injured. I understand that the emergency services operated effectively and quickly.

Approximately 130,000 children are transported to school everyday by the transport service of the Department of Education and Science. Many thousands of other children travel to school using private bus operators, which is encouraged by the Department where there might not be sufficient numbers to warrant a full-scale departmental service.

Naturally, the safety of those children is of concern to all Members. Has the Taoiseach an up-to-date report on this accident and the tragic circumstances surrounding it? Does he have information concerning the mechanical state of the vehicle involved and whether it possessed a certificate under the relevant NCT? Is it the case that while this bus was not fitted with seat belts, private buses carrying school children to school are not required to be so fitted? Was the bus licensed by the Department of Transport and what checks, if any, were carried out in that respect? Does the Taoiseach have a report to hand as to how many children were on the bus? Were some children required to stand?

I understand that two inquiries have been initiated, one by the Department of Transport and the other by the Garda. Obviously, they will take some time to report. I am sure the Taoiseach shares my sympathy for those involved in the tragedy and the concern of the many thousands of parents whose children avail of privately operated bus schemes to be transported to school that the highest standards should apply and that a similar tragedy should not recur.

Bertie Ahern (Dublin Central, Fianna Fail)
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First, I express the sympathy of the House to the family, relatives and community of the 15 year old person who was killed in this tragic accident. This is a sad and black day for them and I pass on the sympathy of the Government and all Members. We wish a speedy and full recovery to the 12 people who were brought to hospital and understand the shock experienced by all others involved.

This was a tragic accident involving a school bus taking children to Killina Presentation secondary school in Rahan, County Offaly. As Deputy Kenny noted, the midlands accident and emergency master plan was put into full operation and ambulances from Portlaoise, Tullamore and Athlone attended the scene. I understand that my colleague, the Minister for Education and Science, Deputy Hanafin, will visit the families and the school later this evening to extend my deepest sympathy to them all.

The Garda is investigating fully the circumstances of the tragic event to establish the causes of the accident and any contributory factors relating to it. Members will appreciate that it would be inappropriate of me to make further comment until I receive the details. In so far as I can reply to some of Deputy Kenny's questions, my understanding, based on information from Bus Éireann, is that the operation in question was not a contracted school bus, but a private hire management. Vehicles engaged in private hire are licensed by the Garda Síochána for a large public service licence. They are required to undergo an annual roadworthiness test undertaken at the authorised test centres which are appointed by the local authorities. I understand the bus in question was the subject of its annual roadworthiness test at the outset of the school year last September. I understand that while it was not necessary for the bus to be licensed with the Department of Transport, the operator was required to be, and was so licensed.

There was much discussion on this issue in this House last year after the tragic accident in Meath. We continue with the process of fulfilling our own regulations and the EU directives regarding seat belts on vehicles. A number of issues arise in this respect that are ongoing at present. That work will continue. I again give our sympathy to the families concerned.

Enda Kenny (Mayo, Fine Gael)
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I thank the Taoiseach for his reply. In a response to Question No. 76 of 15 February 2006 from Deputy O'Sullivan of the Labour Party, the Minister of State at the Department of Education and Science, Deputy de Valera, replied to the effect that buses which are hired privately are not subject to the same regulations as those operating within the Department of Education and Science scheme and that the Department does not have any influence or authority regarding the operation of such buses. Parents who make a contract with a contractor to provide a private bus are expected to ensure that the required safety standards apply, but often it is extremely difficult for a community of parents to do so as they are anxious to get a transport scheme to operate for their children. This can frequently happen when there are insufficient numbers for a full departmental scheme to apply.

I suggest that the Taoiseach initiate a review of the number of school children who are carried by privately operated buses under schemes operating outside the control of the Department of Education and Science to the Department's schools, as outlined in Deputy O'Sullivan's question in February of this year. Two parallel systems exist. One operates under the aegis of the Department of Education and Science, which seeks to implement the highest possible standards following the tragic deaths of five young people last year. In the other system, in which parents are expected to ensure that the highest standards apply, private bus operators with licences are contracted to provide a similar service to Department of Education and Science schools. Would it not be appropriate to make it mandatory that the same set of standards and safety issues should apply when private bus operators operate a private contract for parents? This should be taken for granted and parents should not be expected to know all the details of such standards or to ensure that they apply For children involved in education, the same high levels of safety standards should apply in terms of vehicles, licences, seat belts etc., regardless of whether they are transported by a scheme operated by the Department of Education and Science or by a private contracted service.

Hence, I bring to the Taoiseach's attention a recommendation made by Deputy Naughten in 1999 in the all-party report of the Oireachtas Joint Committee on Education and Science dealing with educational issues, namely, that those safety standards which apply to public school transport should also apply in the case of privately contracted buses. Perhaps the Taoiseach will take these issues on board in view of the recurrence of tragic circumstances.

Bertie Ahern (Dublin Central, Fianna Fail)
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Some, if not all, of those well made points are under examination — I will ensure all of them are considered — following last year's events. As the Deputy noted, although the safety check for roadworthiness takes place under the authorised test centres, the same level of safety standards that apply to public buses, be they CIE buses or Bus Éireann buses, do not apply to privately contracted buses.

Today, I spoke to the responsible Ministers about this issue and they briefed me on the developments in recent months with regard to the various directives. Those issues are being considered. Our law will incorporate a number of directives to the effect that from October 2007, all new buses, other than for scheduled services, must be fitted with safety belts. However, a large proportion of our buses are older stock. Moreover, we buy older buses — presumably private contractors also do so — which are not fitted with seat belts. Following last year's school bus accident in Kentstown, we decided the school transport fleet would be fitted with seat belts on a phased basis and that the entire fleet would be so equipped by no later than the end of this year. In addition, the application of Directive 2003/20/EC will mean that the wearing of seat belts on school buses, once fitted, will be mandatory. While there is the question of a bus operator who is not part of the system, I am sure the matter is being examined. Ideally, the same standards should apply to transport for all school children, especially in rural areas. There is the question of what happens in the case of the scheduled service, which would apply to buses within cities. I understand these issues are being examined. I will bring to the attention of the relevant parties all the points made by the Deputy.

Pat Rabbitte (Dublin South West, Labour)
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On my behalf and that of my Labour Party colleagues, I join Deputy Kenny and the Taoiseach in extending our sincere sympathy to the parents and wider family of the 15 year old youth who was so tragically killed in this accident, and wish a speedy recovery to all those who were injured.

Will the Taoiseach inform the House on a speech he made at the weekend where he expressed concern that we should be nicer to banks. While it is important to the economy that banks are financially sound and profitable, surely he is aware that banks in this country are the most profitable in Europe. I am puzzled why he thinks we should be nicer to them. He was very nice to them when he discontinued the €100 million levy in the budget. What does he think we can do that would be nicer to them?

The two big banks in this country take three times' more profit per customer than the average bank in Europe. How can we be nicer to them than that? As the Taoiseach is aware, there is entirely inadequate competition in the financial services sector. It is not just me saying so; it is out of the State's own mouth and the mouth of the Government's watchdog. Both the Competition Authority and the National Competitiveness Council indicted the financial sector for inadequate competition. In its report, the Competition Authority found that between 2001 and 2004, small and medium enterprises forfeited €250 million because of the manner in which the reduction in interest rates was applied by banks to SMEs during that four-year period.

Banks have been major beneficiaries of some tax incentive schemes. In its report prior to Christmas, the Central Bank expressed concern at the rate of expansion of personal credit at 25% per annum since the last quarter of 2003. It also sounded a warning about debt increasing at a rate of more than three times the national income. Against that background, and as a self-professed socialist, why was the Taoiseach so concerned at the weekend about banks and can he give us any tips on how we can all be nicer to them?

Bertie Ahern (Dublin Central, Fianna Fail)
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I know Deputy Rabbitte was busy over the weekend, therefore, he would not have read my full speech. If he did so, he would have seen the balanced way I presented my speech. I even got thunderous applause from Deputy Bruton and members of the Green Party who were in the audience.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Allow the Taoiseach to reply.

Bertie Ahern (Dublin Central, Fianna Fail)
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Unfortunately, members of the Labour Party were elsewhere. Otherwise I would have received the same applause from them.

Trevor Sargent (Dublin North, Green Party)
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That is delusional.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Allow the Taoiseach to reply.

Bertie Ahern (Dublin Central, Fianna Fail)
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While the Deputy was not present, his colleagues were. I was highly impressed that one of the smallest parties in the House had the majority of its members at the top table. It was a strategic move to the right by the Green Party to have that power with the top bankers.

Trevor Sargent (Dublin North, Green Party)
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The Taoiseach will have his day as well.

Bertie Ahern (Dublin Central, Fianna Fail)
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In reply to Deputy Rabbitte, I was making the point to an industry that employs 55,000 people. I was speaking to international bankers whom we have been trying to encourage to operate and create competition in the Irish economy. We would like to see more funds management and insurance involvement by the banking industry. One of the great selling points of the Irish economy is that more than half of the international banks are based here. There is now more than €1 trillion under funds management in this country. Before attending lunch with the international banks and the IBF, I opened a new wing in Dundrum of the HSBC bank, the Hong Kong and Chinese bank, where there will be a new training and education centre where, in conjunction with the universities, people will be trained to work in the financial services industry, something I have advocated for a long time, and banks will bring their staff, mostly from European locations, to train here.

I made the point that if another industry such as a car company, an information and communications technology industry, or an agricultural co-operative industry makes a profit, people will say it is a good performance because the company made a profit. However, people think there is something wrong if banks make a profit. I have no difficulty saying that the banks should be competitive and charge competitive rates. The best way to do so is to have competition in the market. The bankers I addressed were the people who create that environment, not representatives of just the two main banks in the country.

If the Deputy had an opportunity to read my speech, he would have found it acceptable. I noted over the weekend that the Deputy now thinks all our economic policies, which he disapproved of previously, are now excellent. He omitted one policy, namely, capital gains tax, and he might tell us about that. However, he believes all our other policies are correct. I have no doubt that in the future he will agree with what I said about banks.

Pat Rabbitte (Dublin South West, Labour)
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One never knows where it might lead. Would the Taoiseach not be better speaking to banks about the findings of his agencies, including the Competition Authority, the National Competitiveness Council and the Central Bank, which are major issues of public interest? While it is important that banks are profitable because they are major employers, there is a balance in all these matters. The normal tug of the market that applies in some of the private and public companies to which the Taoiseach referred do not apply in the case of the banks. This is the finding of the Government's agencies such as the Competition Authority. What about all the small companies who found themselves levied to the extent of €250 million over four years because of the misapplication of interest rate reductions at the time? Three times' the profit per customer is extracted in this jurisdiction compared with the average bank in Europe.

Given the forum he had, the Taoiseach might have raised these issues. I enjoy all his speeches when I have the good fortune to be present, but I had other duties to attend to at the weekend. However, I will catch up on what he said. I cannot find any instance of the Taoiseach referring to the fact that he dropped the €100 million levy which was applied to the banks by the former Minister for Finance, Mr. McCreevy, who said at the time it was right the banks should contribute to the public finances. I do not see any reference to the fact the banks are the most profitable in Europe, that the take per customer is three times the average in Europe and that the SMEs forfeited €0.25 billion.

These are major issues. Competition depends on new entrants yet it is virtually impossible to get into the Irish banking market place. These are questions the Taoiseach might have raised rather than counselling the rest of us to be nicer to the banks.

Bertie Ahern (Dublin Central, Fianna Fail)
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Deputy Rabbitte knows I do not write the headlines. I was addressing the IFSC banks creating that competition, rather than Allied Irish Bank and Bank of Ireland only. The broad international bank sector is bringing quality employment here. I have no argument with the agency's assertion that our main commercial banks should, along with making profits internationally and at home, give value for money and charge us only what is absolutely necessary. Without mentioning names, many of the bigger banks which we have brought to Ireland in recent years are helping to drive that competition.

The levy was applied for a period under an agreement by the former Minister for Finance, Mr. McCreevy, and the banking sector. The current Minister for Finance, Deputy Cowen, is taking another initiative to which I hope the banks will fully contribute. The initial levy was an arrangement made for a fixed period, which is finished. It has its own difficulties but the newly-announced initiative will help. What the Competition Authority says, what the financial regulator says and what the Central Bank does in making sure we have good functioning, good governance and a competitive industry should be supported.

I pointed out our involvement in a reassessment of the strategies for the international banks which will be ready in the middle of the summer. It has been focused on my Department and will hopefully drive more progress in the industry. It is not just a question of bottom line profits. The banking industry gives a great deal of quality employment. It should stick by good business practice and charge accordingly, but most of my comments on the day were focused on the international banks.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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I join colleagues in expressing my sincerest sympathy to the bereaved family following the Clara school bus tragedy this morning and to the teaching staff and fellow pupils of the young boy who lost his life. I also extend good wishes for a full recovery to all the injured students involved in that accident. It is appropriate that all of us, not just those in this House, who can make a contribution, should renew their commitment to work together to avoid such tragedies where at all possible in the future.

I wish to ask the Taoiseach about a matter of national importance. Was a decision taken at this morning's Cabinet meeting to proceed with the privatisation of Aer Lingus, our national airline, by floating it on the Stock Exchange? Is the Taoiseach at all aware of concern not only among current and former Aer Lingus staff but among the wider community at the prospect of selling off a strategic interest, our national airline? Is the Taoiseach aware that many local authorities, including his own, Dublin City Council — and Cork and Limerick city councils — have all passed resolutions opposing the proposition to proceed with the privatisation of Aer Lingus? That is indicative of the extent of the wider public concern, with support from across the political spectrum. The Taoiseach is aware that SIPTU members have overwhelmingly voted to serve protective notice in the event of the proposal to sell off the national airline without agreement on key issues such as job security and pensions. I am sure the Taoiseach has noted that union remains firmly opposed to the proposal to privatise Aer Lingus, both in terms of its strategic position within the overall economic interests of the country, and its future.

The ICTU has asked the Government to revisit its refusal to invest in the national airline and to acknowledge that investment in a profitable State company is not debarred by EU law. The Government was also asked to address the ICTU proposal for a State holding company for all State enterprises. This proposal deserves serious consideration. Will the Taoiseach revisit the proposition put forward by the ICTU, which has wide support, and hold off on any further decision on Aer Lingus, irrespective of what decision the Cabinet has made this morning, until the Taoiseach has seriously considered the alternatives which others have presented?

Bertie Ahern (Dublin Central, Fianna Fail)
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I referred to these issues in response to the social partnership questions earlier.

The Minister for Transport has been engaging in lengthy discussions with the trade unions and will continue to talk to them to address these concerns. Last May, we decided to allow the sale of a majority shareholding in Aer Lingus in order to receive an equity injection into the company while retaining a significant stake in it, to protect the State's key strategic interests. The Government authorised the Ministers of Transport and Finance to commence arrangements to facilitate the investment transaction, including the appointment of advisers to make recommendations on the nature, scale and timing of that transaction, which was phase one of the project, as well as the advice on the implementation of a selected transaction mechanism, which is phase two of the work. The advisers to the Ministers of Transport and Finance produced a report on the nature, scale and timing last December, and over the past four months the Ministers have considered all the recommendations made and engaged with the trade unions on the issue. The Government is going ahead with this.

This is good news for the airline, its staff and customers and for the broad economy. The transaction will give Aer Lingus access to the broadest range of funding available in the financial markets. It will also enhance the company's financial strength and give it the commercial flexibility necessary to compete and win in one of the world's most dynamic industries. It will allow Aer Lingus to implement its ambitious business plan and see the long-haul fleet doubling in the short term. The fleet will grow by more than 55% in the next five years, with clear positive implications for the numbers employed in the airline. It will lead to a significant increase in the airline's global reach and thus enhance international access to Ireland for inward investment. It will significantly broaden the level of choice for Irish customers and improve international linkages for domestic business, and enhance our competitiveness as a modern country.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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The Taoiseach has not confirmed if the Cabinet has taken its decision but we can presume it was taken at this morning's meeting. The Taoiseach has not responded to any of the questions I put to him with regards to the ICTU proposition which clearly merits serious consideration, which it has not received heretofore. The Joint Committee on Transport is due to meet to discuss the serious issue of Aer Lingus this Thursday. Why did the Cabinet proceed prior to this important engagement? Is this not indicative, yet again, of a total absence of respect for democratic accountability and consultation? Clearly, that has not happened. The Government has proceeded without the benefit of that further discussion within a committee of the Houses.

Does the Taoiseach not agree with the majority of the people that the privatisation of Eircom, our telecommunications network, was an unmitigated disaster? Is it not the case that a number of spokespersons from the Government Front Bench have indicated that with the benefit of hindsight — it is a pity it always comes with hindsight to them — this was not perhaps the wisest move to have taken? Is it the case that despite this, the same international banker has been engaged to advise on the proposed Aer Lingus privatisation as was engaged in regard to the Eircom debacle? Can we not presume that the very same will happen to Aer Lingus whereby it will be thrown to the wolves, as was the case with Eircom, with very little return to the State, a bleak future for the workforce and a profitable national airline broken up for onward sale and set-aside?

At this eleventh hour, will the Taoiseach respond to an appeal to pull back from the brink on this proposition, recognising the historic reality of previous sell-offs of major key infrastructural elements within our overall economic condition? We appeal to him to pull back from the brink and to examine further all the other salient and important options.

Bertie Ahern (Dublin Central, Fianna Fail)
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I remind Deputy Ó Caoláin that before the decision was taken last year the Cabinet had spent approximately two years in advance discussing the various options and going through the detail. That has continued during the past 12 months. The Minister has also advised Government of the outcome of the consultations with the trade unions.

Understandably trade unions have a number of concerns they wish to see addressed, including issues of job security and pensions. The Minister is doing everything he can to try to resolve these. The Ministers for Transport and Finance will mandate the management in Aer Lingus to engage with the trade unions with a view to resolving the issues identified by them. I am confident that through this process a way forward can be found that will allow the staffs' interests to be addressed to the maximum extent possible while also positioning the airline for growth.

The decision the Cabinet has reached on the future of the company will give it certainty in regard to the future funding it needs to flourish in what is an increasingly competitive global aviation market. As I said earlier, if we want Aer Lingus to have access to broad funding to enhance its strength and allow it to implement its business plan, this is the way we must go and the way the Government has agreed to go.