asked the Minister for Tourism and Transport if consideration of a proposal from Aer Lingus to acquire new aircraft for the Ireland-London routes has yet been completed by the Interdepartmental Review Group on Aer Lingus fleet replacement; if not, when a decision is expected; and if he will make a statement on the matter.

In the course of my reply to a Parliamentary Question on 20 April 1988, I referred to a proposal before me by Aer Lingus to acquire two new Boeing 737-400 aircraft. Following consideration of the proposal by the Aer Lingus Review Group, which supported the approval of the proposal, the Government, on 8 June 1988, approved the acquisition of the two aircraft, on the understanding that there would be no recourse to the Exchequer for the financing of the aircraft. The aircraft are being acquired at a cost of US$71.2 million for delivery in July and October 1989 to cater for the anticipated growth in traffic, particularly tourist traffic, on the Dublin-London routes.

Have Aer Lingus indicated how they propose to raise this US$71.2 million to finance the purchase of the aircraft?

The Deputy can be assured it will be from Aer Lingus's own resources and borrowings——

Is there any indication that the money from the sale of their interest in the hotel group might be called upon?

I do not think so.

The Deputy is introducing a new matter which is irrelevant.

Aer Lingus will finance from their own resources and borrowing, but there will be no State guarantee required for the borrowing.

In the course of their work, have the interdepartmental review group considered the option of acquiring the Airbus? In view of the fact that Europe is moving towards greater cohesion, should we not be giving favourable consideration to products within the Community?

This matter was raised and discussed. Aer Lingus got a particularly good discount in this regard. The question of favouring European products gets due consideration all the time. If we forgot about it the Europeans would remind us regularly.

We do not have any European aircraft in our fleet.

In respect of the ongoing and the finalisation of the report of the review group, I know the Minister is taking it on an item-by-item basis, but has he any current proposals before him with regard to other acquisitions of aircraft?

As was indicated already to the House, the Boeing 737-500, illogically, is smaller than the Boeing 737-400, and four of them — 115 seaters — have been ordered for the European route——

Does this complete the applications from Aer Lingus for aircraft?

Yes.

Question No. 7.

Would the Minister not agree that it is very disappointing——

Sorry, I have called the next Question. I have given the Deputy a lot of latitude.

It is very disappointing that none of these orders is going to our European partners.

There is counter trade.