Committee to meet on Aer Lingus next week

The Cabinet sub-committee established to consider the future of Aer Lingus, will meet next week to discuss the Goldman Sach's…

The Cabinet sub-committee established to consider the future of Aer Lingus, will meet next week to discuss the Goldman Sach's report, writes Marie O'Halloran.

The Tánaiste, Ms Harney, told the Dáil that the committee, which has not yet met, will meet next week to consider the report on the options for the State airline.

She also said the document would be published, but when pressed as to when, she said "after the Government has considered it", and then added "shortly".

Ms Harney was responding to renewed questions from the Opposition in the wake of the announcement of the resignation of the airline's three most senior executives, and the apparent split between the coalition partners over potential privatisation of the company.

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There were some moments of humour during the ongoing row over Aer Lingus's future, when Ms Harney was pressed on her political philosophy.

Socialist TD, Mr Joe Higgins, who had jeered the Taoiseach about his comments that he was a socialist, asked if the Tánaiste would tell the Dáil "whether she feels her political marriage of convenience is in some difficulty".

Ms Harney quipped to some laughter that "as for my political philosophy, I am a socially concerned liberal".

The Goldman Sach's report, which was presented to the Department of Transport six weeks ago, is understood to have warned that there were very serious risks associated with maintaining the status quo at Aer Lingus. Without complete commercial freedom and easy access to capital funding it would not be able to compete with other airlines, and the only pragmatic option was to have a public offering.

The Fine Gael leader, Mr Enda Kenny, reminded Ms Harney of remarks she made in March that "there are two ways to kill reform. One is not to act on it and the other day is to delay it through endless discussions and consultation. Consultation can- not be a substitute for decision."

Ms Harney said she still agreed with what she had said. Mr Kenny also criticised the Government's failure to make any decision and he also hit out at the "personalised attacks made by the Taoiseach on management figures of Aer Lingus".

On Wednesday, Mr Ahern said there was concern with the company that the proposed management buyout was aimed at making some people rich.

Mr Kenny asked about the in- troduction of the Air Navigation and Transport Bill, which deals with the financing of aircraft, "particularly in view of the fact that Aer Lingus has turned the corner but is now in a precarious position". Ms Harney said it would be published early next year.

Labour leader, Mr Pat Rabbitte, reminded the Tánaiste of her comment that the PDs would walk out of Government if transport reforms did not go ahead and asked when would the transport reform Bill be brought forward. Ms Harney said it would be introduced next year.