Pat Gallagher (Donegal South West, Fianna Fail)

I thank Senator Cox for raising this issue and giving me an opportunity to respond to her comments. As the House is aware, the Great Southern Hotels group is a wholly owned subsidiary of the Dublin Airport Authority. The chairman of the authority informed the Taoiseach and the Minister for Transport last February that the board of the GSH group had decided that it had no option, in the best interest of all its stakeholders, other than to sell the hotel chain as a going concern. The board took that decision with regard to the company's poor financial performance, the negative outlook for the business and the inability of the board of the authority to continue to support Great Southern Hotels financially. The chairman of the authority informed the Minister at that time that his board had endorsed the decision of the board of the GSH group and concluded that it should facilitate the orderly disposal of the hotels as a going concern. The authority has informed the Minister that it has decided to continue to provide financial support to the GSH group this year, to facilitate the continuation of normal operations and an orderly process of disposal of the hotels. The group has assured all its staff, customers and business partners that it intends to operate normally during the disposal process.

The Minister, Deputy Cullen, has been informed by the Dublin Airport Authority that a process of full engagement with staff and unions on the implications of the board's decision is under way. The Government and the Minister have been aware for some time of the difficulties and challenges facing the GSH group in a competitive and changing hotel market, in which holidaymakers and business travellers are offered a great range and choice of hotel and other accommodation at home and abroad. The Government took note of the authority's assessment that the orderly disposal of the hotels, as a going concern, offers the best opportunity for the hotels to reach their full potential in the niche markets to which they are best suited. The disposal will also enable the hotels to contribute to the development of tourism in their localities and to their communities.

The Great Southern Hotel group has retained advisers to examine all aspects of the proposed disposal of the hotels. The Minister understands that the executive chairman of the group and the advisers, together with the senior management of the group, have visited all the hotels and met the staff to discuss the difficulties being faced by the GSH group and the implications of the decision to dispose of the hotels. A programme will be put in place to minimise the impact of the decision on the day-to-day business of the hotels. The Minister recently met trade union representatives from the GSH group to discuss their concerns about the future of the hotels. He understands that meetings have also taken place between the unions and the Dublin Airport Authority and that further discussions are planned. That the authority has given an assurance that it will continue to support the hotels financially during the rest of this year is a clear indication that the hotels are unable to support themselves.

I accept the points made by Senator Cox, who has a deep interest in the Great Southern Hotels group. I am quite familiar with the Eyre Square and Corrib hotels and I appreciate that they have played a great part in the development of the city of Galway. I assure the Senator that I will convey her concerns about the staff and the future of the hotels to the attention of the Minister, Deputy Cullen, who will convey them in turn to the Dublin Airport Authority. I reiterate that the decision that was taken by the GSH group was endorsed by the authority and noted by the Government. I assure Senator Cox that the Minister and I will monitor the situation closely.