asked the Minister for Tourism and Transport if his attention has been drawn to an EC investigation of payments to KLM not to serve Dublin; if such an agreement was sanctioned by his Department; the date on which such sanction was sought; the date on which it was given; and if he will make a statement on the matter.

I am aware that the EC Commission is at present having discussions with Aer Lingus about the provisions of their joint venture agreement with KLM. The Commission is also having discussions with a number of other European airlines regarding similar agreements.

This agreement, which was signed in 1980, did not require the sanction of my Department and such sanction was not sought.

In view of the Minister's new enlightened approach to air transport would he agree that this type of arrangement which is practically bordering on bribing another company not to enter this country is totally undesirable and should not be considered in the future by any other company based in this country?

I have read the file in connection with this arrangement and the correspondence between the Commission and Aer Lingus and one thing which was apparent was that Aer Lingus co-operated fully with the Commission and in one particular communication they were commended by the Commission for their co-operation.