The Taoiseach again insisted that the Government made a case to the EU Commission about investing equity in Aer Lingus.

Responding to Opposition claims that there was no written submission, Mr Ahern said the EU was rigid in its position, but he added that the Government would continue to make a case as part of the survival plan for the airline.

Fine Gael leader Mr Michael Noonan said he had been informed "by a reliable source" that "despite all the talk and all the answers given in the House", the Government failed to make a written submission. If that was not true, "it should be denied immediately".

Mr Ahern replied: "Whatever about letters which have formally been passed by the Department, the officials of the Department have had a number of meetings directly with the Commission".

The issue had been discussed with the President of the Commission. "I assure the workers in Aer Lingus that every avenue to assist them is being followed and will continue to be followed." But Mr Noonan said there had been no written submission and added "one would not approach a bank manager without writing him a letter".

He pointed to the protective notice issued to 250 Servis Air employees, whose management blamed the global downturn in the aviation industry. Mr Noonan said this was further evidence that equity for Aer Lingus would not be found within the sector.

The Fine Gael leader asked the Taoiseach what progress had been made in getting Commission agreement to allow the Government put equity into Aer Lingus, "which is absolutely necessary in parallel with the reconstruction package to save the airline".

The case "has been made to the Commission and the Commissioner", Mr Ahern said.

"It has been made in formal meetings between the Minister and the Commission. The Commission is fully aware of the situation and the minutes of all the meetings are available."