Taoiseach Bertie Ahern has staunchly defended the Government's decision to privatise Aer Lingus against Opposition allegations that the move was based on "two major falsehoods" and was one of the "most outstanding acts of economic treachery" in the history of the State.
In sharply worded exchanges, Mr Ahern said that twice in the past decade Aer Lingus "almost went down". Part-privatisation, "based on all the best advice, is the way to allow it get available funding in the financial markets, to have additional aircraft, to help the financial strength of the company, to grow into the future and to implement its own business plan.
"To do otherwise would be to reject the best advice available to us." He pointed out that the Government would retain at least 25.1 per cent of the company.
Labour leader Pat Rabbitte claimed the Taoiseach had built up anticipation about a majority sale of the national airline on the basis of "two deceptions". The first was that the State was prevented under EU rules from investing in Aer Lingus, which was not the case.
"The second deception relates to the pretence that the Minister for Transport is retaining a golden share. The Taoiseach and the Minister know that the European Court rejected as illegal the ownership of a minority golden share which could protect strategic interests." In the UK, with the airport operator BAA, the government's golden share was ruled illegal under EU law in 2003.
Mr Rabbitte said that advisers Goldman Sachs had made it plain that the Government sought their advice specifically on the basis that it would not provide further capital to Aer Lingus.
Socialist Party TD Joe Higgins (Dublin West) described the decision to privatise the company as "one of the most outstanding acts of economic treachery committed by any government in the history of the State". He asked "why does the Taoiseach persist with the fraudulent assertion that privatisation is necessary for funding when he is well aware that if necessary public funding to the tune of billions of euro can be wisely invested in this national asset".
Mr Higgins added that "it is the right-wing ideologues of Fianna Fáil and the Progressive Democrats who are pushing the privatisation agenda and forcing our national airline into the hands of sharks".
Mr Ahern said he disagreed "with practically everything" Mr Higgins said. "His theory would have resulted in Aer Lingus's closure.
"The company still employs 3,600 people. It employed 3,000 more when it was in State ownership and hamstrung by the constraints imposed by the State which prevented it from developing."
The Taoiseach said he believed privatisation was the right policy. Aer Lingus in its current situation "can hardly manage to deal with the five airports it flies to in the US". Twenty two locations in the US wanted to do business with Ireland.
"We need investment to bring people here. If we can bring these people to different regions of the country, it will develop tourism, which will create jobs and allow us to become a modern country."
