I propose to take Questions Nos. 3 and 51 together.
Following representations made to me by the management of B & I and the B & I group of unions, I have decided to request my financial advisers, Stokes Kennedy Crowley Corporate Finance Ltd., to open negotiations with a view to receiving a fully comprehensive management staff buyout proposal. I have also instructed my advisers that negotiations with Irish Continental Group may take place at the same time. It would be inappropriate for me to provide details of discussions with any particular party.
Following conclusion of the negotiations a final decision will be taken by the Government. Arrangements for completion of the sale will be put in place immediately thereafter, including the introduction of the necessary legislation.
The level of consultation with trade union interests in relation to this sale is possibly unprecedented. To date, my Department have had approximately 20 meetings with trade union representatives, including the Irish Congress of Trade Unions, as well as numerous bilateral contacts. I have met trade union representatives on three occasions. I am, therefore, satisfied that the legitimate requirement for consultation with trade union interests has been fully satisfied in this instance.
I wish to remind Deputies that the Exchequer has invested £106 million in B & I Line since 1965 when it was acquired from the private sector by the State, including £53 million since 1985. Despite an improved trading result in the current year, the company still require substantial Exchequer financial assistance to meet their ongoing commitments.
SKC Corporate Finance Ltd. were appointed by me last year to examine the future options for B & I with the main objective of determining how soon the company's dependence on Exchequer financial support could be ended. Having assessed the feasibility and financial implications of a number of options, the consultants came out strongly in favour of the sale of B & I as the best option.
The Government's decision to sell their shareholding was strongly influenced by the fact that they do not have the resources for the continued heavy investment in the company which the consultants highlighted and which all parties concerned agree is necessary for their survival and continued development.