Concern voiced over Aer Lingus buy-out

The Aer Lingus management buy- out proposal will be considered as part of the ongoing debate on the ownership of the airline and the need to avoid a conflict of interest, the Taoiseach has told the Dáil.

Mr Ahern said legal advice had been sought about the roles of management and the issue of corporate governance.

The Green Party leader, Mr Trevor Sargent, expressed concern about "the management putting forward a buy-out proposal having been the same people that have engaged in so many of the cuts. Isn't there a case to be answered ethically as to whether those people should then effectively benefit from having made those cuts themselves?"

The Socialist Party TD, Mr Joe Higgins, called for the dismissal of the company's chief executive because of "an irreconcilable conflict of interest and elect a board committed to the development of Aer Lingus in public ownership".

The Taoiseach, who will chair a Cabinet sub-committee on ownership, said the proposal would be considered "in the context of the need for openness and transparency and avoidance of conflict of interest in consultation with the stakeholders.

"This is an important point as these people form the company's management and, as the deputy said, the governance issue is important in this matter and must be protected." The company's interim chairman "has sought legal advice on the roles and corporate governance arrangements they need to put in place".