asked the Minister for Tourism and Transport if he has approved the terms of the sale by Aer Rianta of a portion of the company to a private tours competitor (details supplied); the price received for same; the commercial criteria involved in arriving at this decision; and whether any tenders were sought.
Ceisteanna—Questions. Oral Answers. - Aer Rianta Tour Handling Business.
26.
The tour handling business referred to in the Deputy's question was part of a joint venture arrangement between Aer Rianta and SFADCo which has also been involved in a number of other tourism related activities since its formation in the early 1960s.
Following the collapse of the only private tour handling company in the mid-west region in 1970 the tour handling business was established by Aer Rianta and SFADCo to fill the gap in the vital area of servicing incoming tourist groups.
Because of the subsequent emergence of a number of successful privately owned tour handlers in the mid-west it was decided last year that it was no longer necessary or appropriate for Aer Rianta and SFADCo to be directly involved in this activity. Accordingly, the tour handling business was offered for sale and a number of tenders were received. The business was sold recently to a private company.
The paramount consideration governing the decision in relation to the eventual sale of the business was the need to ensure a continuation of the high level of service which had been provided by the Aer Rianta/SFADCo joint venture in attracting and handling groups of tourists in the region and also normal commercial criteria.
In accordance with long established practice it would not be appropriate for me to disclose confidential commercial details in relation to the sale price of the business.
I am anxious to find out when exactly these tenders were publicly invited. What papers were asked for? This company was recognised in the area as being very successful. In the case of the privatisation of a public company the offer should have been widely available to the trade. When were these tenders invited? Was there a selective tender system as operated by SFADCo, a kind of under the counter system, used in this case?
I do not have any dates here but I can assure the Deputy that there was nothing under the counter about it. There were five tenders and it went to the highest bidder.
When were the tenders invited and where?
Following consideration at board level in both Aer Rianta and SFADCo the business was sold to this private company. The sale price is on record, as are the other tenders, but I do not want to break with the precedent of not revealing private commercial details.
How and where were these tenders invited? Was it through the press or privately? There is a lot of concern about this matter in the Shannon area.
Another company was set up by former employees of the company, so there were two companies doing that job. There were five staff employed in the tour handling division prior to its sale. They were all Aer Rianta employees. One resigned shortly before the business was sold, two are now working for a new company and the remaining two are back in Aer Rianta. I will let the Deputy know about the date.
This matter of privatisation gives rise to a lot of emotion. I understand the balance of this company is now to be offered at Shannon. The precedent set in the asking of tenders in this case leaves a lot to be desired. Will the Minister ensure that in future sales of public companies will require publication of invitations to tender in the national newspapers?
I would be totally on the Deputy's side in that any transactions should be transparent. This is very small company with very small sums of money involved. I would like full transparency.
That disposes of questions for today.