Decision on legislation for Aer Rianta break-up delayed

The Government has deferred a decision on legislation to break up Aer Rianta for at least a week amid growing union pressure …

The Government has deferred a decision on legislation to break up Aer Rianta for at least a week amid growing union pressure to have the Minister for Transport's plans postponed or abandoned. Mark Brennock, Chief Political Correspondent reports

While Mr Brennan had booked time in the Seanad next week to push the Bill through all stages, this plan was scrapped after the Cabinet decided yesterday morning not to make a quick decision. The postponement follows receipt of a letter on Monday from the general secretary of the Irish Congress of Trade Unions, Mr David Begg.

Mr Begg argued that an expert analysis of a Pricewaterhouse Coopers (PWC) report on the prospects for the airports showed that the plan should not go ahead.

Consultants employed by the union have concluded that the PWC report provides "no comfort" for their members and does not address many key issues.

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A spokesman for the Minister said yesterday that some "technical issues" to do with the legislation necessitated further Cabinet consideration. However, Labour's transport spokeswoman, Ms Roisín Shortall, said she had no doubt that "this has been held off because of the letter from David Begg".

It seemed likely last night that the Government would have further contact with the trade unions before making its decision. A spokesman for Mr Brennan said last night that it was possible that adjourned talks, chaired by Mr Tom Pomphrett of the Labour Relations Commission, could be resumed.

In advance of yesterday's meeting, Mr Brennan had expressed determination to press ahead quickly despite union objections. However, yesterday's Cabinet decision gives time to the trade union movement to make a full response to the Pricewaterhouse Coopers report, which casts doubt on the financial advantages of the plan, before a final decision.

In addition, the unions are awaiting an assessment from accountants Farrell Grant Sparks of the financial projections produced by the Department of Transport for how the three airports would fare after an Aer Rianta break-up.

The Cabinet also discussed the prospects for talks on a renewed social partnership deal yesterday. With Mr Begg having intervened strongly on Monday, Ministers are understood to be anxious not to sour the atmosphere with the trade unions on the Aer Rianta issue before such talks get under way.