Harney distances herself from Aer Lingus comment

The Tánaiste has said she does not agree with the Taoiseach's assertion that three former Aer Lingus executives tried to "steal…

The Tánaiste has said she does not agree with the Taoiseach's assertion that three former Aer Lingus executives tried to "steal" the company's assets.

Representing the Government during today's Order of Business, Ms Harney suggested that Mr Ahern may have intended to use the word "strip" instead of "steal" in relation to the assets. She added: "As I made it clear, it is not my perspective on the matter."

One of the executives, the current British Airways chief executive Willie Walsh, today dismissed the Taoiseach's claims.

As I made it clear, it is not my perspective on the matter
Tánaiste Mary Harney

In a strongly worded attack in the Dáil yesterday the Taoiseach alleged that Mr Walsh, the man credited with turning around the State airline's fortunes, wanted to ride roughshod over staff interests.

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"The management wanted to steal the assets for themselves in a management buy-out and shaft the interests of the staff," he told the House.

"I'm glad those individuals went on to prove their worth in the financial markets, but at least they didn't do it at the expense of Aer Lingus."

But rejecting Mr Ahern's claims, the BA chief insisted taking the carrier private was the right way forward.

A statement issued through BA said: "History will prove that Willie Walsh's foresight to take Aer Lingus into the private sector is the right course of action, and we're delighted that his outstanding leadership skills are firmly embedded at British Airways."

The claims were made during a Dáil row on the part-privatisation of the company, originally expected in the autumn. Mr Ahern claimed during the Order of Business that Mr Walsh, Brian Dunne and Seamus Kearney "wanted to steal the assets" of the airline when they proposed a management buy-out in 2004.

The Taoiseach has been criticised for the unprovoked attack and was further accused in the Dáil today of defaming Mr Walsh to win votes.

Labour leader Pat Rabbitte today told the Dáil that the Taoiseach's remarks were a serious defamation of Mr Walsh and an abuse of parliamentary privilege.

The issue was also raised by Fine Gael leader Enda Kenny, Caoimhghin O'Caolain of Sinn Féin, Green Party leader Trevor Sargent and Socialist Party TD Joe Higgins.

Citing Dáil procedures, Mr Rabbitte said: "That was a serious defamation of a person or persons who are not in the House to defend themselves. It was a serious abuse of parliamentary privilege for populist and electoral gain. An outrageous breach of privilege."

Mr Rabbitte said that Ceann Comhairle Rory O'Hanlon should have intervened when Mr Ahern made the remark.

Leas Ceann Comhairle Seamus Pattison, who was deputising for Mr O'Hanlon today, said he could not review the decisions of the Ceann Comhairle.

Mr Rabbitte said he would raise the issue with Mr Ahern in the Dáil next week and ask him to apologise for the remarks and correct the Dáil record.

Minister for Transport Martin Cullen refused to be drawn into the row today. Speaking after a conference of international transport ministers in Dublin, Mr Cullen said he had no dealings with Mr Walsh since he left Aer Lingus. "I wish him well in his new post," he said, adding that he was satisfied with the progress being made in arrangements to sell off a majority stake in the airline.

This deal, he insisted, would be of "enormous benefit to the company".