Vol. 399 No. 10
11 Mr. Byrne asked the Minister for Tourism and Transport if he has had, or plans to have, discussions with Aer Lingus regarding the employment situation of those employed by Aer Lingus Holidays Ltd, in light of his instruction for a phased withdrawal by Aer Lingus Holidays Ltd from the tour operation business at the end of the current season; and if he will make a statement on the matter.
I am advised by Aer Lingus that procedures are currently in train to sell the Aer Lingus Holidays business as a going concern. This is the preferred option for withdrawal from the business, and would provide the best prospect for continued employment for staff members.
I have asked Aer Lingus to deal with this problem as effectively and sensitively as possible. I have expressed the view that, as suitable new opportunities arise in Aer Lingus, preference should be given as far as possible to the staff of Aer Lingus Holidays. In this context, it should be noted that Aer Lingus recruited over 1,000 new employees over the past two years.
In the light of the satisfactory restructuring and slimming down of Aer Lingus Holidays — which I have been told is trading satisfactorily — would the Minister agree that as the major shareholder he acted punitively by ordering Aer Lingus to get out of the sun holiday and charter business? Would he agree further that it is not the function of the shareholder to act in a penal manner and that he has played directly into the hands of Aer Lingus' competitors by forcing Aer Lingus to put their business and properties on the open market and possibly accruing a more substantial loss to the State?
I am aware that view could be taken, but the Government viewed the situation in Aer Lingus Holidays so seriously that, in my view, it was the least we could have done.
While I agree there were serious problems in the group, would the Minister not agree that Aer Lingus, having identified the problems internally, should not have been penalised in the manner they have been, that a substantial number of senior executives had left Aer Lingus Holidays prior to the problems being exposed and that these very same people, who are in the tour business, are the likely beneficiaries of what has happened within the Aer Lingus Group? Would the Minister not agree also that by handling the situation in the way he has, he is playing right into the hands of these people and is not giving sufficient legitimacy to the case Aer Lingus have been making? Would the Minister further agree that the real culprits——
Let us have brevity.
——are the auditors in terms of the falsified accounting methods that have been indulged in——
Please, Deputy Byrne.
Why are they not being penalised?
The Deputy is ignoring the Chair.
A Cheann Comhairle, the Deputy is making a Second Stage speech.
I have taken very firm action in this matter and it has met with general acceptance——
Will the Minister be taking action against the accountancy company who falsified the books——
Let us hear the Minister's reply.
I have instructed the board to take the legal action available to them, to take disciplinary action, to withdraw from the business and so on. I regard those instructions as the least any Minister and Government should do. This was a serious matter and had to be handled firmly.
Is there any evidence before the House that any accountancy firm falsified the books? The Deputy has made an allegation and there is only one firm of auditors involved in this and, so far as I am aware, there is no allegation of the auditors falsifying the books and I do not think this should be allowed go on the record of the House.
Let us be careful not to malign persons outside the House.
A Cheann Comhairle, is it not a fact that the Garda Síochána have been brought into this case to investigate the losses——
I am calling the next question, No. 12.
The Deputy surely is not making his reputation by maligning other people under the privilege of the House?
I have called No. 12.
Why does the Deputy not ask about the people who did the job?
No. 12.
Maybe they are members of the secret branch of The Workers' Party.
