Break-up of Aer Rianta will happen, says Ahern

The Taoiseach has insisted that the Government will go ahead with the break-up of Aer Rianta but will wait until full consultations with the unions are completed before legislation is published.

Mr Ahern told the Dáil that "we will bring this to fruition", as the Labour leader, Mr Pat Rabbitte said that consultants had issued a "savage indictment of the daft plans" of the Minister for Transport to establish Dublin, Shannon and Cork as independent airport authorities.

"No business case has been made out, higher charges will result and no decision has been made on the provision of additional terminal capacity at Dublin airport. Jobs will be lost," he said. The Government was "breaking up an Irish-based multinational that has an international reputation, damaging its purchasing capacity, creating three fledgling organisations".

The Socialist Party TD Mr Joe Higgins said that major consultants Mazars, "not bastions of revolutionary thought", had said "they are taken aback that the Government is pressing ahead at this stage and with the speed encompassed".

But Mr Ahern said the decision to establish Dublin, Shannon and Cork as fully independent authorities was "so that we can drive competition to bring more people in. It will create 5,000 more jobs". When he brought in the restructuring plan for Aer Lingus 11 years ago it was described as "daft" because nobody believed there could be 10 million passengers going through Dublin airport. "Now the numbers are heading towards 20 million passengers. Do we sit around and do nothing or do we do something? The reality is that Aer Rianta is not in a healthy financial position." On Tuesday the Cabinet deferred a decision on the legislation even though it was scheduled for the Seanad next week.

The Taoiseach said they had just finished the very successful restructuring of Aer Lingus to put it into a healthy position.

"We must conclude our work," he said, adding that he had been waiting since last October "so that unions, management and the various groups can come up with alternatives".

The Taoiseach added that while Mr Rabbitte was "well informed" about the consultants' comments, he should not "use selective leaks". He would also know that the company was not in a healthy position and that it has a business plan.

"We are in discussions with the trade union movement, which we will honour and fulfil. We are waiting for the unions' full assessment. The Government has also examined all the other assessments. We have all been involved in this discussion."

The Labour leader said that the Minister for Finance agreed with him and "I hope he blocks it because it is a scandalous waste of State assets".

When Mr Higgins asked would the Taoiseach bring forward the legislation before the summer recess, Mr Ahern replied that "we await the unions' response. We will continue with the negotiation that have been ongoing since last July and we hope to bring those to fruition as soon as possible, after which we can introduce the Bill." He also stressed that the Minister had repeatedly stated that "there will be no diminution in the tenure or terms and conditions of employment of Aer Rianta workers arising from the decisions on which he is working".