Finian McGrath (Dublin North Central, Independent)
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Question 787: To ask the Minister for Transport his views on the anti-privatisation efforts of staff at Aer Lingus as an alternative to selling the national airline; and the position regarding this matter. [24937/05]

Martin Cullen (Waterford, Fianna Fail)
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As the Deputy will be aware, in its decision of 18 May the Government agreed to the State disposing of a majority shareholding in Aer Lingus subject to retaining a stake of at least 25% to protect strategic interests provided that both myself and the Minister for Finance are satisfied that this level of disposal is warranted on foot of the analysis prepared by the Departments' advisers for the transaction.

Following a competitive tender process, UBS and AIB Capital Markets have been appointed to provide financial advice and assistance to both myself and the Minister for Finance in relation to an Aer Lingus sale-investment transaction. William Fry Solicitors and Freshfields Bruckhaus Deringer have been appointed as legal advisers for the assignment. Work is already under way on phase 1 of the assignment and is expected to be completed by 1 December 2005.

In accordance with the terms of Sustaining Progress, I engaged with the trade unions on the future of Aer Lingus earlier this year before the Government finalised its consideration of the matter. Under the terms of the employee share ownership agreement, both myself and the Minister for Finance, as main shareholders, and the company must consult with the employees through the central representative council representing the unions in Aer Lingus and the ESOP trustees. I understand from my officials that these consultations have commenced.