Air Companies Act, 1966

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Guarantee by Minister for Finance of borrowings by Aer Lingus and Aerlinte.

5.—(1) The Minister for Finance may, after consultation with the Minister, guarantee in such form and manner and in such moneys (including moneys in a currency other than the currency of the State) and on such terms and conditions as he thinks fit, the due repayment of moneys borrowed either before or after the commencement of this Act by Aer Lingus or Aerlinte or the payment of interest on such moneys or both the repayment of the principal and the payment of the interest.

(2) The Minister for Finance shall not so exercise the powers conferred by subsection (1) of this section and subsection (1) of section 4 of this Act that—

(a) advances to Aer Lingus under the latter subsection together with the amount, or the aggregate amount, of principal which he may at any one time be liable to pay on foot of any guarantees under subsection (1) of this section for the time being in force in relation to moneys borrowed by Aer Lingus after the commencement of this Act together with the amount of principal (if any) which the Minister for Finance has previously paid on foot of any such guarantees and has not been repaid by Aer Lingus exceeds five million pounds, or

(b) the amount, or the aggregate amount, of principal which he may at any one time be liable to pay on foot of any guarantees under the said subsection (1) (other than a guarantee to which subsection (12) of this section relates) for the time being in force in relation to moneys borrowed by Aer Lingus before the commencement of this Act together with the amount of principal (if any) which the Minister has previously paid on foot of any such guarantees and has not been repaid by Aer Lingus exceeds one million pounds.

(3) The Minister for Finance shall not so exercise the powers conferred by subsection (1) of this section and subsection (2) of section 4 of this Act that advances to Aerlinte under the latter subsection together with the amount, or the aggregate amount, of principal which he may at any one time be liable to pay on foot of any guarantees under subsection 1 of this section for the time being in force in relation to moneys borrowed by Aerlinte together with the amount of principal (if any) which the Minister for Finance has previously paid on foot of any such guarantees and has not been repaid by that company exceeds six million pounds.

(4) Where a guarantee under this section is or has been given, the company given it shall, if the Minister for Finance so requires, give to him such security (including, in particular, debentures) as may be specified in the requisition for the purpose of securing to the Minister for Finance the repayment of any moneys which he may be liable to pay or has paid under the guarantee.

(5) The Minister for Finance shall, as soon as may be after the expiration of every financial year, lay before each House of the Oireachtas a statement setting out with respect to each guarantee under this section given during that year or given at any time before, and in force at, the commencement of that year—

(a) particulars of the guarantee,

(b) in case any payment has been made by the Minister for Finance under the guarantee before the end of that year, the amount of the payment and the amount (if any) repaid to the Minister for Finance on foot of the payment,

(c) the amount of principal covered by the guarantee which was outstanding at the end of that year.

(6) Moneys advanced out of the Central Fund to enable the Minister for Finance to make a payment under a guarantee under this section shall be repaid to the Minister for Finance (with interest thereon at such rate or rates as the Minister for Finance appoints) by Aer Lingus or Aerlinte, as the case may be, within two years from the date of the advance of the moneys out of the Central Fund.

(7) Where the whole or any part of moneys required by subsection (6) of this section to be repaid to the Minister for Finance has not been repaid in accordance with that subsection, the amount so remaining outstanding shall be repaid to the Central Fund out of moneys provided by the Oireachtas.

(8) Notwithstanding the provision of moneys under subsection (7) of this section to repay an amount to the Central Fund, Aer Lingus or Aerlinte, as the case may be, shall remain liable to the Minister for Finance in respect of that amount and that amount (with interest thereon at such rate or rates as the Minister for Finance appoints) shall be paid to the Minister for Finance by Aer Lingus or Aerlinte, as the case may be, at such times and in such instalments as the Minister for Finance appoints and, in default of payment as aforesaid and without prejudice to any other method of recovery, shall be recoverable as a simple contract debt in any court of competent jurisdiction.

(9) Moneys paid by Aer Lingus or Aerlinte to the Minister for Finance or recovered from Aer Lingus or Aerlinte by the Minister for Finance under this section shall be paid into or disposed of for the benefit of the Exchequer.

(10) In relation to a guarantee under this section in moneys in a currency other than the currency of the State—

(a) each of the references to principal in subsections (2) and (3) of this section shall be taken as referring to the equivalent in currency of the State of the actual principal, such equivalent being calculated according to the rate of exchange at the time of the giving of the guarantee,

(b) each of the references to moneys in subsection (6) of this section and subsection (1) of section 7 of this Act shall be taken as referring to the cost in currency of the State of the actual moneys.

(11) Where—

(a) the equivalent in currency of the State of other currency is being calculated pursuant to paragraph (a) of the foregoing subsection, and

(b) the currencies having, at the time specified in that paragraph, par values established under the Articles of Agreement of the International Monetary Fund include the currency of the State and the other currency,

the reference in that paragraph to the rate of exchange at that time shall be taken as referring to the rate of exchange based on those values.

(12) A guarantee given by the Minister for Finance under section 75 of the Air Navigation and Transport Act, 1936 , of the due payment by Aer Rianta in accordance with the terms of debentures securing the repayment of moneys borrowed by Aer Rianta and issued by Aer Rianta before the commencement of this Act of the principal moneys and interest secured by the debentures shall, upon such commencement, be deemed to be a guarantee given under this section of the due payment by Aer Lingus in accordance with the terms of the debentures of the principal moneys and interest secured by the debentures and shall continue in full force and effect accordingly.

(13) Moneys payable by Aer Lingus or Aerlinte under a contract for the provision of goods entered into whether before or after the commencement of this Act with the approval of the Minister given with the consent of the Minister for Finance shall be deemed, for the purposes of this section, to be moneys borrowed by Aer Lingus or Aerlinte, as the case may be.