Dáil Report: As the Dáil passed the State Airports Bill to allow for the break-up of Aer Rianta by 60 votes to 53 despite trenchant opposition objections, the Taoiseach insisted that there was "no ongoing difficulty" with the restructuring.
He was commenting as the Labour leader, Mr Pat Rabbitte, claimed that solicitors to the company had advised that "at its mildest" it was "problematic" whether the Minister for Transport could continue to proceed with the break-up as outlined in the legislation. It was certainly not possible to proceed without securing express waivers from the company's bankers and bond-holders, he said.
"Otherwise, the restructuring would constitute an event of default and the banks would be entitled to accelerate and demand immediate repayment of the loans," Mr Rabbitte said.
The Taoiseach insisted that the Department of Finance was fully involved in the matter.
The issues were raised in the Dáil as the opposition demanded in vain that the State Airports Bill be recommitted or started again from scratch.
During the final stages of the debate, the Minister for Transport, Mr Brennan, defended the legislation and sharply criticised the Labour Party for its "patronising" approach to the restructuring of Aer Rianta. He said this view is that Shannon and Cork Airports "must be held in the family of Aer Rianta, and we must shovel them down lorryloads of money to keep them quiet."
He rejected this "patronising and depressing attitude."
Earlier the Labour leader read out extracts from what he said was the legal advice from solicitors Arthur Cox to Aer Rianta, which, he said, appeared to confirm his fears about the plan.
The solicitors' opinion was that the bank terms did not permit Aer Rianta "to cease to carry on any part, or in some case, any substantial part, of its business" without a waiver. He added that the company could not seek to retain ownership or cease to operate from Cork and Shannon without an express waiver. Otherwise it would be "an event of default".
He asked the Taoiseach if the Minister for Transport or the company had contacted the financiers to seek a waiver.
Mr Ahern said the bondholders' issue was being dealt with by the Department of Transport. "The company is handling the funder relationships in a professional and businesslike way," he said. "The communications process will continue in the coming weeks and months."
Mr Ahern added: "While the handling of this important aspect of the restructuring process is a matter for the company, both the Department of Transport and the Department of Finance are involved and continue to offer whatever advice or assistance the company may seek from the handling of these communications".
But Mr Rabbitte said: "We have been going on with this for a year. The Government is proceeding to break up a company and then to give the justification for breaking it up afterwards."
"There is no point telling me that it is being provided for, as this has been going on for a year.
"Has the waiver been sought from the bankers and has it been received? Has the waiver been sought from the bond trustee and has it been received and is there a clear position on this in terms of Aer Rianta itself?"
