Dáil Éireann díospóireacht -
Tuesday, 12 Jun 1990

Vol. 399 No. 10

Written Answers. - Aer Lingus Report.

Eamon Gilmore

Ceist:

26 Mr. Gilmore asked the Minister for Tourism and Transport if he has received from Aer Lingus the report which he informed Dáil Éireann on 16 May 1990 he had requested Aer Lingus to furnish to him regarding measures to improve the internal system of financial control within the Aer Lingus group, arising from an investigation into the affairs of Aer Lingus Holidays Ltd.; if Aer Lingus have taken any disciplinary action against any staff in light of the Craig Gardner report; if any civil action has been initiated by Aer Lingus arising from this affair; and if he will make a statement on the matter.

Michael Moynihan

Ceist:

165 Mr. Moynihan asked the Minister for Tourism and Transport if he will make a statement on the progress made to date by Aer Lingus in complying with his instructions in respect of Aer Lingus Holidays plc.

Minister for Tourism and Transport (Mr. S. Brennan)

I propose to take Questions Nos. 26 and 165 together.

I have received interim reports from the chairman of Aer Lingus on the action taken to implement the instructions I issued to the board of Aer Lingus on 15 May 1990, following receipt by me from Craig Gardner of the report of their accounting investigation into the affairs of Aer Lingus Holidays Limited.

The chairman has informed me that a comprehensive action programme, part of which has aready been implemented, is under way to strengthen financial controls within the Aer Lingus group. The Assistant Chief Executive — Finance, who was recruited from outside the group last September, is in the process of filling seven new senior finance appointments as part of a reorganisation and enhancement of the group finance function. In parallel, steps are being taken to strengthen substantially the group's corporate legal function and specific recommendations are being developed in this area.

The chairman has assured me that all appropriate steps are being taken to prevent a recurrence of irregularities anywhere in the Aer Lingus group such as occurred in Aer Lingus Holidays. He has also informed me that arrangements are being made, as I requested, for a phased and orderly withdrawal by Aer Lingus Holidays Limited from the tour operating business at the end of the current season.

The chairman has advised me that, arising from the Craig Gardner report, the board of Aer Lingus have decided that certain legal action should be initiated. I regret that I am unable to make any further comment on this point or on the question of discipinary action taken by the board since such comment could prejudice any proposed legal action.