The Minister for Public Enterprise said Aer Lingus could not be privatised in the current circumstances.

Ms O'Rourke said that while a formal decision had been taken to proceed with the privatisation, "it is quite clear now that you could not proceed until all of the present disputes are resolved".

The Minister, who was replying to a series of special notice questions from Opposition TDs, said direct talks had taken place in some instances. "Further direct talks should be followed, as necessary, with speedy reference of outstanding matters to the Labour Relations Commission or the Labour Court as the case may be."