Brennan denies Aer Rianta faces concern from creditors

The Minister for Transport has denied that any of Aer Rianta's creditors had expressed concern about being repaid after the proposed break-up of the company.

Speaking during the Seanad debate on the future of the company today, Mr Seamus Brennan, also attacked whoever had leaked a confidential letter sent by Aer Rianta to his department.

The letter, sent by Aer Rianta's chief executive, Ms Margaret Sweeney on June 30th,  suggested there were concerns among management at the company that banks may withdraw their funds in the event of the break-up.

She warned the action could leave the company insolvent and said lenders' approval should be secured before the company was broken up.

"The leaking of a letter recently from the company which was sent to my department was, I believe, designed to create an erroneous and dangerous impression of instability in the company's funder relationships," Mr Brennan insisted today. "That was a reckless thing to do. There was no such instability.

"I want to say in the clearest terms, the funders were in touch with the company by letter on one occasion. It was responded to by the company to the satisfaction of all, to my understanding."

Mr Brennan said that since he signalled his intention to break up Aer Rianta a year ago, he has received "not one letter, not a fax, not a text message from any bank, any funder, worried about their funds".

He insisted that when a bank lends money to State companies, it doesn't "worry too much" about the funds.

The former minister for public enterprise, Ms Mary O'Rourke, reiterated her claim that the Government's draft legislation for the State Airports Bill was premature and poorly drafted.

"Most of all what I don't like about this legislation is I cannot find the imperative for it," she said. "Nothing in the minister's speech or what I have ever heard him saying about it...has ever given me any direction as to why one is compelled to pass this Bill now, eight or nine months before the business plans are in place."

Fine Gael's Senator Fergal Browne urged Ms O'Rourke to vote against the Bill or abstain if she felt so strongly about it. He cited former British government minister Mr Robin Cook, who resigned over his opposition to the war in Iraq. Ms O'Rourke pointed out that this was not Iraq.

The debate continues tomorrow.