Government won’t block sale of Great Southern hotel group

TAOISEACH Bertie Ahern yesterday discounted the possibility of the Government retaining ownership of the Great Southern Hotel group, saying the sale of the semi-State was the best option.

Affirmation of the Government’s position comes as SIPTU threatens to pull out of partnership talks over the issue.

Instead of a sell-off, the union will meet with Transport Minister Martin Cullen on Tuesday to urge the transfer of the troubled hotel group to Fáilte Ireland.

However, speaking in the Dáil yesterday, Mr Ahern said the best opportunity for the loss-making hotel chain is for it to be sold as a going concern.

In response to questions from Labour leader Pat Rabbitte, Mr Ahern said the group was “not going anywhere they need to go” and the “orderly disposal of the hotels as a going concern offers the best opportunity for the hotels in reaching their full potential in a niche market”.

“The important issues are to engage with the staff and with staff interests and to try and deal with these as a going concern to keep them as hotels in so far as possible, to keep as many employed, if not extend the employment,” Mr Ahern said.

His comments were echoed by Tourism Minister John O’Donoghue, who, along with Mr Ahern, is a long-time supporter of the hotel group.

However, SIPTU general secretary Joe O’Flynn said the hotels’ sale could have “serious implications” for Siptu’s “continued participation in the so-called partnership talks”.

“The Great Southern Hotel group is the flagship of the hotel industry in Ireland. The service the hotels receive from employees is exceptional and Siptu will not stand by and let 800 decent jobs go,” he said.

Mr O’Flynn said the union would make a “firm case” for the hotel group to be transferred to Fáilte Ireland when it meets Mr Cullen next Tuesday.

Mr Rabbitte said it was a bad day for tourism.

“If the argument is they ought to be replaced by cheaper staff and some of the hotels sold off for property speculation that is quite frankly a disgrace,” he said.

However, with losses of €6 million last year and e3m the year before, it appears the Government is prepared to allow the chain to be sold once advisers appointed by the Dublin Airport Authority recommend the move.

It is understood the Great Southern directors felt they had no option but to agree to a sale given the losses.