No. 36/1976:

AIR COMPANIES (AMENDMENT) ACT, 1976

ARRANGEMENT OF SECTIONS

1 Definitions.

2 Guarantee by Minister for Finance of borrowing by Aer Lingus and Aerlinte.

3 Borrowing by the air companies.

4 Provision of moneys for payments under this Act out of the Central Fund.

5 Alteration of memorandum and articles of association of air companies.

6 Chief officers' remuneration, etc.

7 Repeals.

8 Expenses.

9 Short title and collective citation.

AN ACT TO INCREASE THE LIMIT ON, AND TO EXTEND THE SCOPE OF, GUARANTEES OF BORROWING BY AER LINGUS, TEORANTA AND AERLINTE EIREANN, TEORANTA, TO AMEND AND EXTEND THE AIR COMPANIES ACTS, 1966 TO 1969, AND TO PROVIDE FOR OTHER MATTERS CONNECTED WITH THE AFORESAID MATTERS.

[20th December, 1976]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

1.—In this Act—

"the Act of 1966" means the Air Companies Act, 1966 ;

"air company" means Aer Lingus, Aerlinte or Aer Rianta, and "air companies" shall be construed accordingly;

"Aer Lingus" means Aer Lingus, Teoranta;

"Aerlinte" means Aerlinte Éireann, Teoranta;

"Aer Rianta" means Aer Rianta, Teoranta;

"the Minister" means the Minister for Transport and Power.

2.—(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—

( a ) the due repayment of moneys borrowed either before or after the passing 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, and

( b ) the due payment by Aer Lingus or Aerlinte of moneys in respect of the leasing of aircraft.

(2) The Minister for Finance shall not so exercise the powers conferred on him by subsection (1) of this section that the aggregate amount—

( a ) of principal which he may at any time be liable to pay in respect of guarantees under subsection (1) (a) of this section or under section 5 of the Act of 1966, and for the time being in force, in relation to moneys borrowed by Aer Lingus or Aerlinte (or by both Aer Lingus and 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, and

( b ) of moneys referred to in subsection (1) (b) of this section,

exceeds £75,000,000.

(3) 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.

(4) 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 referred to in subsection (2) of this section and 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.

(5) Moneys advanced out of the Central Fund to enable the Minister for Finance to make a payment under a guarantee referred to in subsection (2) of 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.

(6) Where the whole or any part of moneys required by subsection (5) 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.

(7) Notwithstanding the provision of moneys under subsection (6) 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.

(8) 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.

(9) In relation to a guarantee referred to in subsection (2) of this section and given in moneys in a currency other than the currency of the State—

( a ) each of the references to principal in subsection (2) (a) of this section and to moneys in subsection (2) (b) of this section shall be taken as referring to the equivalent in currency of the State of the actual principal or moneys, 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 (5) of this section and section 4 of this Act shall be taken as referring to the cost in currency of the State of the actual moneys.

(10) Moneys payable by Aer Lingus or Aerlinte under a contract for the provision of goods entered into 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.

3.—(1) ( a ) Each air company may, with (but only with) the consent of the Minister for Finance given after consultation with the Minister, borrow money (including money in a currency other than the currency of the State) upon such terms and conditions as may be approved of by the Minister for Finance by such means as it thinks fit.

( b ) Without prejudice to the generality of paragraph (a) of this subsection, each air company may, with the consent of the Minister for Finance given after consultation with the Minister, borrow money by means of the creation of stock or other forms of security to be issued, transferred, dealt with and redeemed in such manner and on such terms and conditions as the company borrowing the money may, with the aforementioned consent given after the aforementioned consultation, determine.

(2) The borrowing powers conferred by this section on the air companies may be exercised for any purpose arising in the performance of their functions.

(3) The terms upon which moneys are borrowed under this section by an air company may, subject to the consent of the Minister for Finance given after consultation with the Minister, include provisions charging the moneys and interest thereon upon all property of whatsoever kind for the time being vested in the company or upon any particular property of the company.

(4) The total amount borrowed under this section by an air company shall not exceed such amount as may be sanctioned by the Minister for Finance from time to time in respect of that company.

4.—All moneys from time to time required by the Minister for Finance to meet sums which may become payable by him under this Act shall be paid out of the Central Fund or the growing produce thereof.

5.—The air companies shall take such steps as may be necessary under the Companies Act, 1963 , to alter their memoranda and articles of association to make them consistent with this Act.

6.—There shall be paid by an air company to its chief officer (whether he is so described or otherwise) such remuneration and allowances as that air company, with the approval of the Minister given with the consent of the Minister for the Public Service, shall determine.

7.—The following are hereby repealed—

( a ) sections 5 and 11 of the Act of 1966,

( b ) the Air Companies (Amendment) Act, 1967 ,

( c ) section 6 of the Air Companies (Amendment) Act, 1969 .

8.—The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

9.—(1) This Act may be cited as the Air Companies (Amendment) Act, 1976 .

(2) The Air Companies Acts, 1966 to 1969, and this Act may be cited together as the Air Companies Acts, 1966 to 1976.