I join colleagues in expressing my sincerest sympathy to the bereaved family following the Clara school bus tragedy this morning and to the teaching staff and fellow pupils of the young boy who lost his life. I also extend good wishes for a full recovery to all the injured students involved in that accident. It is appropriate that all of us, not just those in this House, who can make a contribution, should renew their commitment to work together to avoid such tragedies where at all possible in the future.

I wish to ask the Taoiseach about a matter of national importance. Was a decision taken at this morning's Cabinet meeting to proceed with the privatisation of Aer Lingus, our national airline, by floating it on the Stock Exchange? Is the Taoiseach at all aware of concern not only among current and former Aer Lingus staff but among the wider community at the prospect of selling off a strategic interest, our national airline? Is the Taoiseach aware that many local authorities, including his own, Dublin City Council — and Cork and Limerick city councils — have all passed resolutions opposing the proposition to proceed with the privatisation of Aer Lingus? That is indicative of the extent of the wider public concern, with support from across the political spectrum. The Taoiseach is aware that SIPTU members have overwhelmingly voted to serve protective notice in the event of the proposal to sell off the national airline without agreement on key issues such as job security and pensions. I am sure the Taoiseach has noted that union remains firmly opposed to the proposal to privatise Aer Lingus, both in terms of its strategic position within the overall economic interests of the country, and its future.

The ICTU has asked the Government to revisit its refusal to invest in the national airline and to acknowledge that investment in a profitable State company is not debarred by EU law. The Government was also asked to address the ICTU proposal for a State holding company for all State enterprises. This proposal deserves serious consideration. Will the Taoiseach revisit the proposition put forward by the ICTU, which has wide support, and hold off on any further decision on Aer Lingus, irrespective of what decision the Cabinet has made this morning, until the Taoiseach has seriously considered the alternatives which others have presented?

I referred to these issues in response to the social partnership questions earlier.

The Minister for Transport has been engaging in lengthy discussions with the trade unions and will continue to talk to them to address these concerns. Last May, we decided to allow the sale of a majority shareholding in Aer Lingus in order to receive an equity injection into the company while retaining a significant stake in it, to protect the State's key strategic interests. The Government authorised the Ministers of Transport and Finance to commence arrangements to facilitate the investment transaction, including the appointment of advisers to make recommendations on the nature, scale and timing of that transaction, which was phase one of the project, as well as the advice on the implementation of a selected transaction mechanism, which is phase two of the work. The advisers to the Ministers of Transport and Finance produced a report on the nature, scale and timing last December, and over the past four months the Ministers have considered all the recommendations made and engaged with the trade unions on the issue. The Government is going ahead with this.

This is good news for the airline, its staff and customers and for the broad economy. The transaction will give Aer Lingus access to the broadest range of funding available in the financial markets. It will also enhance the company's financial strength and give it the commercial flexibility necessary to compete and win in one of the world's most dynamic industries. It will allow Aer Lingus to implement its ambitious business plan and see the long-haul fleet doubling in the short term. The fleet will grow by more than 55% in the next five years, with clear positive implications for the numbers employed in the airline. It will lead to a significant increase in the airline's global reach and thus enhance international access to Ireland for inward investment. It will significantly broaden the level of choice for Irish customers and improve international linkages for domestic business, and enhance our competitiveness as a modern country.

The Taoiseach has not confirmed if the Cabinet has taken its decision but we can presume it was taken at this morning's meeting. The Taoiseach has not responded to any of the questions I put to him with regards to the ICTU proposition which clearly merits serious consideration, which it has not received heretofore. The Joint Committee on Transport is due to meet to discuss the serious issue of Aer Lingus this Thursday. Why did the Cabinet proceed prior to this important engagement? Is this not indicative, yet again, of a total absence of respect for democratic accountability and consultation? Clearly, that has not happened. The Government has proceeded without the benefit of that further discussion within a committee of the Houses.

Does the Taoiseach not agree with the majority of the people that the privatisation of Eircom, our telecommunications network, was an unmitigated disaster? Is it not the case that a number of spokespersons from the Government Front Bench have indicated that with the benefit of hindsight — it is a pity it always comes with hindsight to them — this was not perhaps the wisest move to have taken? Is it the case that despite this, the same international banker has been engaged to advise on the proposed Aer Lingus privatisation as was engaged in regard to the Eircom debacle? Can we not presume that the very same will happen to Aer Lingus whereby it will be thrown to the wolves, as was the case with Eircom, with very little return to the State, a bleak future for the workforce and a profitable national airline broken up for onward sale and set-aside?

At this eleventh hour, will the Taoiseach respond to an appeal to pull back from the brink on this proposition, recognising the historic reality of previous sell-offs of major key infrastructural elements within our overall economic condition? We appeal to him to pull back from the brink and to examine further all the other salient and important options.

I remind Deputy Ó Caoláin that before the decision was taken last year the Cabinet had spent approximately two years in advance discussing the various options and going through the detail. That has continued during the past 12 months. The Minister has also advised Government of the outcome of the consultations with the trade unions.

Understandably trade unions have a number of concerns they wish to see addressed, including issues of job security and pensions. The Minister is doing everything he can to try to resolve these. The Ministers for Transport and Finance will mandate the management in Aer Lingus to engage with the trade unions with a view to resolving the issues identified by them. I am confident that through this process a way forward can be found that will allow the staffs' interests to be addressed to the maximum extent possible while also positioning the airline for growth.

The decision the Cabinet has reached on the future of the company will give it certainty in regard to the future funding it needs to flourish in what is an increasingly competitive global aviation market. As I said earlier, if we want Aer Lingus to have access to broad funding to enhance its strength and allow it to implement its business plan, this is the way we must go and the way the Government has agreed to go.