Gay Mitchell
Ceist:7 Mr. G. Mitchell asked the Minister for Tourism and Transport if he has considered the possibility of an employee share option plan as a possible way of assisting in the future development of Aer Lingus.
Ceisteanna — Questions. Oral Answers. - Aer Lingus Development.
I have no plans to introduce an employee share option scheme in Aer Lingus nor have I received any proposals to that effect.
Would the Minister inform the House if his Department have been approached by anyone offering to purchase part or all the shares in Aer Lingus. Would he agree that it would be preferable to give employees an opportunity to participate in the purchase of the company by allowing share write-offs which would be consistent with the statement made by his colleague, the Minister for Labour, on 6 September 1989 at the University of Limerick?
I am not aware of any such offer. Certainly no formal offer of that sort has been made to me. Second, as the Deputy will be aware the ownership of Aer Lingus is in State hands and I have no proposals to sell shares in Aer Lingus.
Would the Minister inform the House if any informal approaches have been made to him to purchase part or all of the shares in Aer Lingus and if it is a fact that Aer Lingus have run into difficulties with their development plans and recently gave up the options it has to purchase aircraft due to the lack of resources? Would he agree to look at the question of an employee share option scheme as one way of funding the future development of Aer Lingus?
First, I have had no formal or informal contacts with regard to purchasing shares in Aer Lingus. Secondly, I am not aware of Aer Lingus dropping any options on aircraft. I understand they are forging ahead with their fleet replacement programme as strongly as possible. Thirdly of course I will look at the Deputy's suggestions.
Is the Minister assuring this House that there was no formal or informal approach to him or his Department to purchase Aer Lingus or its shares in any shape or form?
The Deputy would not expect me to be fully aware of informal contacts throughout my whole Department. I have no knowledge of any formal contacts or offers to my Department and I certainly have had no formal or informal offers. I cannot speak for all of the couple of hundred members in regard to what some might say to them at a party or something.
Can we take it from the Minister's responses, dragged slowly from him in this case, that there have been no contacts and that we can take it in effect that the Minister is not telling the House that discussions have not taken place between some members of his Department and Aer Lingus? In fact, since the Minister is responsible at the end of the day, he has the responsibility to know whether discussions are taking place. Can he say exactly whether discussions have taken place between the officials in his Department and Aer Lingus management in relation to the matter under discussion?
I have to be careful about what I say here because Deputy Mitchell has asked me if I have had offers to buy shares in Aer Lingus and Deputy Spring has asked me if there have been discussions about share options. I have had no indication and I am not aware of any formal discussions with my Department in regard to the purchase of shares by employees. The reason I want to be careful here is that we meet regularly with the board of Aer Lingus; we meet officials of Aer Lingus regularly. Occasionally the question of future equity comes up and the usual hardy annuals are kicked around the table about how we are to buy aeroplanes in the future and where we will get the money. In that context, month in and month out, the future capitalisation of Aer Lingus is discussed around the table.
Nobody mentioned this option?
That is not the same thing as formal offers to buy shares in Aer Lingus of which I have had none.
Can we take it the Minister has had no approaches to buy the company in any other shape or form, by merger or otherwise?
I have had no approaches.