Taoiseach rules out selling State's shares in Aer Lingus

Taoiseach Bertie Ahern ruled out the Government selling its shares in Aer Lingus. He said Ryanair's attempted takeover of the airline raised fundamental questions relating to aviation policy and regulation issues.

"These questions will have to be carefully examined. The Government remains fully committed to competition in aviation markets, and will not be selling its shares in Aer Lingus."

Mr Ahern said Ireland's strategic interest in aviation was best served by the maximum number of regular, safe and cost-effective air services linking the country to key business and tourism markets. That remained the case.

He said the approach from Ryanair was unexpected.

"It is, in the first instance, a matter for the board of directors of the company to evaluate the Ryanair offer and to express an opinion to shareholders.

"It is also the case that any proposal of this kind would require regulatory clearance, and it remains to be clarified whether this is a matter for the Irish regulatory authorities or the European Commission. That matter is being closely examined today."

Mr Ahern said Minister for Transport Martin Cullen was consulting his advisers. He would evaluate all the strategic and policy issues arising, and would set out the position more fully at an appropriate time.

Mr Ahern was replying, on the Order of Business, to Fine Gael leader Enda Kenny.

Replying later to a series of special notice questions, Mr Cullen said there was a certain amount of irony involved given that the Government had assisted Ryanair in ending a monopoly situation in the aviation sector. This was in the best interests of the Irish economy and people.

"What Ryanair is now, in effect, trying to do is recreate a monopoly in the aviation sector in this country. A monopoly is bad for business, the country, the customer, the travelling public and tourism interests."

Labour spokeswoman Róisín Shortall said a month ago two very strong airlines were serving the State. "We are now facing the prospect of a privately-owned monopoly controlling the vast bulk of airline services in and out of this country."

Fine Gael spokeswoman Olivia Mitchell wondered if it was a case that Ryanair wanted to get into the long-haul business and found Aer Lingus a vehicle to do this.

"The loss of competition would be a cause of concern for everybody. Consumers would lose out in terms of price and choice."

Green Party spokesman Eamonn Ryan said it had taken a week for the folly of Mr Cullen's course of action to emerge. "This was an incredibly foolish and reckless decision to give up a national asset and effectively put it on the market."

Joe Higgins (Socialist Party, Dublin West) accused the Minister of being guilty of creating what was by any standards a shocking debacle.

"Do you not find it grotesque that an airline belonging to the Irish people, built up by the dedication of thousands of workers for decades, is now in danger of going into the control of a ruthless operator who is anti-worker rights, anti-trade union rights and anti-environment?"

Sinn Féin spokesman Sean Crowe said the development was bad not only for tourists but commuters, Aer Lingus workers, the Irish economy and employers who had to get their product to the market.