Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 377: To ask the Minister for Transport if he has given consideration to the SIPTU alternative proposal for the funding of Aer Lingus expansion through a State owned holding company; and if he will make a statement on the matter. [26571/05]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

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 and 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 in relation to phase one 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.

The alternative funding mechanism suggested by SIPTU is based on a proposal, put forward by the Irish Congress of Trade Unions, for a State-owned holding company which would become the vehicle for State ownership of, and investment in, commercial State companies. In advance of the Government making its decision on Aer Lingus I understand that the many issues and concerns that would arise from the ICTU proposal were conveyed in detail to ICTU at official level by the Department of the Taoiseach.