Finian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context

Question 297: To ask the Minister for Transport if he will support the anti-privatisation campaign by SIPTU; if his attention has been drawn to the case of the Air New Zealand privatisation in the late 1980s that went bankrupt in the 1990s under private ownership and was subsequently rescued by the state at twice the price and is now prospering under public ownership which has benefited the New Zealand people; and if he will ensure that Aer Lingus is retained under public control as a strategic asset for the economic security of the State. [11616/06]

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

I am aware of the case that the Deputy has referred to. As the Deputy will be aware, in its decision of 18 May 2005 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.

The decision to dispose of a majority shareholding in Aer Lingus was made following detailed and comprehensive consideration of the issue by myself and my colleagues in Government. The Government agreed in its decision that the strategic development of the State airports and Aer Lingus was essential to underpin Ireland's competitiveness, industry and tourism. Furthermore, its consideration was based on an acknowledgement that the company had an immediate need for access to equity capital to enable it to compete effectively and to fund growth and that this investment could not, and should not, come from the Government. It is precisely because of the strategic importance to Ireland of a wide range of cost effective air services that a third party investment in the airline is being sought. The question of reviewing the Government's decision therefore does not arise