Joanna Tuffy (Dublin Mid West, Labour)
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Question 155: To ask the Minister for Transport the contacts he has had with Aer Lingus management and unions in view of the recent industrial relations issues at the airline; if he has been briefed recently by the Government appointed directors to the board of Aer Lingus; the directions he has given the Government appointed directors in terms of protecting our national strategic aviation interests; and if he and the Government will respond to calls to fully utilise the industrial relations machinery of the State; and if he will make a statement on the matter. [39853/08]

Pat Breen (Clare, Fine Gael)
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Question 200: To ask the Minister for Transport if he will put a dispute resolution process in place to assist in resolving the crisis at Aer Lingus; the steps he is taking to assist in this matter in view of the State's 25% shareholding; and if he will make a statement on the matter. [40110/08]

Noel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 155 and 200 together.

I have not had contact with Aer Lingus management or unions nor have I been briefed by the State-nominated directors on the Board in relation to the current industrial relations issues at the airline. The conduct of industrial relations is a matter for the company and the State's shareholding does not confer on me any direct role in this matter.

Under Company law all directors are obliged to pursue the best interests of the Company. Subject to that duty, the State's nominees on the Board of Aer Lingus have been issued with a mandate to ensure that all future decisions of the company that have significant implications for wider Government, aviation or regional development policies are considered at Board level. The mandate specifically states that the possible decisions concerned would include decisions on proposals with significant local or national economic implications including a direct impact on employment. In accordance with the mandate the State's nominees are directed to seek to reconcile commercial and public policy objectives. However, the Deputy will be aware that directors are not at liberty to disclose price sensitive information to shareholders. The mandate to the State-nominated directors is subject to the overriding obligations of all directors to uphold their fiduciary duties and protect the interests of all shareholders.

As Minister for Transport I am concerned that any disruption of services arising from possible industrial action would inconvenience the travelling public and have a negative effect on the economy which is already experiencing serious difficulties. I would therefore urge all sides to avail of the industrial relations mechanisms of the State to provide any necessary assistance in resolving current challenges faced by the management and employees of the Company.