Dáil Éireann debate -
Tuesday, 7 Dec 1999

Vol. 512 No. 3

Written Answers - Great Southern Hotel Group.

Breeda Moynihan-Cronin

Question:

92 Mrs. B. Moynihan-Cronin asked the Minister for Public Enterprise if she has brought the matter of the proposed sale of the Great Southern Hotels to Cabinet; if so, the decision, if any, made; the situation on the proposed sale; and if she will make a statement on the matter. [25958/99]

Batt O'Keeffe

Question:

94 Mr. B. O'Keeffe asked the Minister for Public Enterprise the plans, if any, she has to sell-off the Great Southern Hotel Group; and if this sale will be as a collective unit or as individual outlets. [22179/99]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 92 and 94 together.

The board of Aer Rianta submitted a report to me on 15 April last on the future strategic direction of the company in which they sought the authority to exit from the Great Southern Hotels, in a manner determined through a consultative process with the relevant stakeholders.

Over the past few months I have met and consulted with the staff of all the Great Southern Hotels. I advised them that my main consideration would be, of course, to find the right future for the Great Southern Hotels in a way that will also be right for the staff and right for the Irish tourism industry.

The board of Aer Rianta retained Arthur Andersen consultants to examine all the options for the future of the Great Southern Hotel Group. They have also appointed Mr. Phil Flynn to act as facilitator with the trade unions as part of the process. Aer Rianta has recently forwarded a copy of the Arthur Andersen report to my Department.

I expect very shortly to receive the report of the advisers appointed by myself and the Minister for Finance to examine and evaluate the full range of recommendations made to me by the board of Aer Rianta in respect of the company's future strategic direction.

Following the receipt of this report and consideration of its recommendations, I will consult with my Cabinet colleagues in the normal way and then report to Government with specific recommendations in regard to the future of Aer Rianta including proposals in relation to the Great Southern Hotel Group. It would not be appropriate for me at this point to speculate on what those recommendations will be.