Dáil Éireann debate -
Tuesday, 25 Jun 2002

Vol. 553 No. 5

Written Answers. - Aer Lingus.

Denis Naughten

Question:

331 Mr. Naughten asked the Minister for Transport the procedures used by Aer Lingus to sell off a wholly owned subsidiary company (details supplied); if Aer Lingus has accepted a tender; and if so, the name of the tenderer. [14581/02]

Minister for Transport (Mr. Brennan)

The disposal of assets is a matter for the board of Aer Lingus. There is no statutory requirement for Aer Lingus to notify the Minister of such disposals.

However, the guidelines for the governance of State bodies, issued by the Department of Finance, provide, inter alia, that the disposal of assets of State bodies above a threshold level of €70,000 should be by auction or competitive tendering and that board approval where necessary should be obtained. Also, the chairperson, in the annual report to the Minister, is required to affirm that the disposal procedures outlined in the guidelines have been complied with. The chairman has provided such confirmation in his latest report to the Minister dealing with 2001 dated 26 April 2002. At the appropriate time the chairman will provide similar information about disposals in 2002.

However, in relation to the subsidiary mentioned by the Deputy, following a structured and open tendering process managed by independent legal and financial advisers, the board approved the transaction on 30 May 2002 and the company was sold to the highest bidder.