Aer Lingus situation 'incredible'

Socialist Party TD Joe Higgins described as "incredible" a revelation that the Cabinet sub-committee on Aer Lingus had not met since late last year.

Mr Higgins said that an enormous decision to privatise a national airline had taken place.

He was responding to Taoiseach Bertie Ahern, who said the sub-committee had last met in December, 2004, and there were no arrangements for it to meet again. All matters after that were dealt with by the full Cabinet.

"The Minister for Transport made it clear to the House last week that he and the Minister for Finance will move quickly to appoint advisers and deal with the issues. This was dealt with at the Cabinet," said Mr Ahern.

"There is no need for the sub-committee. It had a job to do and it dealt with it.

"The matter has moved on and the Minister for Transport and Minister for Finance are dealing with it."

Labour leader Pat Rabbitte said the Taoiseach had told the Dáil that the sub-committee last met in December.

He added: "I am asking if the decision was taken by then, or if it was taken subsequently. When was the decision taken?"

Mr Ahern said the decision was made by the Cabinet as part of the overall decision of two weeks ago.

Caoimhghín Ó Caoláin (SF, Cavan-Monaghan), asked what function the sub-committee performed, given that it had not met this year and the fact that the Cabinet made a decision a fortnight ago.

"Did the plan for Aer Lingus and Dublin airport emanate from the Cabinet sub-committee on Aer Lingus? Did the sub-committee have any deliberations on this matter, either at its December 2004 meeting or earlier meetings? Is it the case, as the Taoiseach's response suggests, that it has no relevance to the issue and its central raison d'etre?"

Mr Ahern replied: "The deputy must understand that a Cabinet sub-committee is sometimes established to deal with a particular aspect of a decision.

"In this case, it dealt with a Goldman Sachs' report and related issues. As soon as that issue was dealt with, the sub-committee ended. The Cabinet dealt with everything else."

When the report comes back from the Departments of Finance and Transport, it will be dealt with at Cabinet, the Taoiseach added.