A challenge to the legality of a Dáil motion on Aer Lingus share arrangements was rejected by Minister for Transport Martin Cullen.
He said that his response was very straightforward. "What I have before me was drafted by all the legal teams involved in the matter. I have no reason to believe that there is any defect in the Government motion, which is fully in accordance with legislation."
However, Fine Gael spokeswoman Olivia Mitchell insisted there was a disparity between the terms of the motion and what was required under the primary legislation on the privatisation of the company.
"I have now received three separate sets of legal advice confirming that the motion is seriously flawed and does not comply with what is required under the primary legislation. This states that 'the Minister for Finance may not dispose of any shares in the company without the general principles of the disposal being laid before and approved by Dáil Éireann'.
"The motion calls for our approval of the disposal of the shares and, therefore, any sale that might proceed on the basis of this flawed motion would be unlawful."
Mr Cullen said that the motion sought the approval of the House for the general principles of the disposal of shares in Aer Lingus. He said that the public would be able to buy shares, subject to minimum investment of €10,000, and he expected the process to be completed by the end of September. Securing the support of Aer Lingus workers had been to the forefront, he added.
"I am aware of the concerns of many staff in Aer Lingus with regard to the proposed IPO, particularly in respect of issues such as job security and pensions. However, I am confident these issues can best be secured in the context of a strong, growing and competitive company."
Labour spokeswoman Róisín Shortall said that Aer Lingus was too important to the economy, and the State generally, to subject it to the kind of incompetence they had become used to from the Minister and his Cabinet colleagues. "The Labour Party has maintained from the beginning that the proposal to privatise Aer Lingus was ill-considered and ill-judged."
James Breen (Independent, Clare) said it was a source of shame that the staff, who helped to turn Aer Lingus from a loss-making company in 2001 to the strong position it was in now, should suffer.
Finian McGrath (Independent, Dublin North Central) said he was 100 per cent behind the staff and pensioners at the company.
Green Party leader Trevor Sargent said the Government should invest in the company as a vital national asset. "This would be in the best interests of the airline, the workers and the economy." Seán Crowe (SF, Dublin South West) said it was both a historic and a sad day. "I have had telephone calls today from some very upset Aer Lingus workers. It is a disgrace that we were informed of the sell-off by means of a leak to the newspapers."
Jim Glennon (FF, Dublin North) said a major step would be taken to allow the company take its place among world airlines with its own financial foundation in place, regardless of State aid.
Jimmy Deenihan (FG, Kerry North) said that there should have been a White Paper on the flotation of the company.
Kathleen Lynch (Labour, Cork North Central) claimed the pensioners were being "sold a pup", given that profits from the venture would go into the general coffers.
The Government motion was passed by 68 votes to 54.
