Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 151: To ask the Minister for Transport his proposals to overcome the shortfall in the fund in view of the ongoing uncertainty regarding the pension scheme for Aer Lingus workers. [9166/06]

Eamon Ryan (Dublin South, Green Party)
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Question 360: To ask the Minister for Transport the steps he has taken to address the pension fund deficit of more than €330 million at Aer Lingus before the planned sale of the company in six months' time. [9214/06]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 371: To ask the Minister for Transport if he foresees obstacles to utilising some of the proceeds of shares in Aer Lingus to supplement the deficit in the pensions of retired aviation workers. [8996/06]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 151, 360 and 371 together.

I have already dealt, in response to priority questions, with the Government's decision to dispose of a majority stake in Aer Lingus and the ongoing consideration, by the Minister for Finance and me, of the advisers' report on the nature, scale and timing of an investment transaction. The advisers report identifies issues that should be resolved in regard to the company's pension schemes.

I understand that, on the basis of the most recent actuarial valuation, the Irish airlines superannuation (general employees) scheme is in deficit if provision is to be made for future increases in pensions to reflect growth in the consumer price index. I also understand that, under the rules of the scheme, there is no guarantee in regard to the granting of increases in pensions. Such increases are entirely at the discretion of the trustees of the scheme. If no such increases were to be paid the scheme would be in surplus.

The scheme is a multi-employer scheme with the Dublin Airport Authority and SR Technics being employer members alongside Aer Lingus. The issue of funding is a matter for the company and its employees. However, in light of the issues raised in the advisers' report I asked the company to assess the options to deal with the issues. An increase in contributions by the company and employees would be an essential part of any solution. It may be possible, in the context of an overall solution to the pension issue, that the company may utilise some of the equity raised in a transaction for the purpose of meeting part of its commitment to resolving the funding requirements. Based on advice received to date, I do not anticipate any obstacles to implementing a solution along these lines.

Last week I asked the company to engage intensively with the trade unions and their advisers in regard to its proposal on the pensions issue. I hope to revert to Government in the coming weeks in the light of the progress in that process.