Vol. 427 No. 3
37 Mr. Callely asked the Minister for Transport, Energy and Communications the procedures for State companies to borrow moneys under the aegis of his Department, in particular the interest rates charged on such loans; and if he will make a statement on the borrowings of £47 million by Team Aer Lingus which is being charged 53 per cent interest on these borrowings.
Borrowings by State companies under the aegis of my Department are subject to approval by me and by the Minister for Finance.
On the question of procedures relating to the general terms and conditions, including interest rates, applying to such borrowings, the requirements vary depending on the State body and on the legislation under which the body was set up. In general, however, the Minister for Finance would take into account these terms and conditions when deciding to give his consent for the borrowings.
With regard to TEAM Aer Lingus, it is not appropriate for me to discuss details of borrowings by individual companies within the Aer Lingus Group. I can assure the Deputy, however, that TEAM Aer Lingus is not being charged 53 per cent interest on borrowings of £47 million. Borrowings by TEAM, as by any other company within the Aer Lingus Group, are very carefully monitored to ensure that the best rates and terms are achieved.
