Cabinet row erupts over Dublin Airport terminal

A Cabinet row has erupted in the wake of Minister for Transport Martin Cullen's comments regarding the privatisation of Aer Lingus and the creation of a second terminal at Dublin Airport.

At Irish Management Institute conference in Wicklow today, Mr Cullen hinted that the Dublin Airport Authority (DAA) may play a key role in building and running a second terminal, saying he saw no need for competition at the airport.

He said he intends to present "an integrated set of proposals" on the aviation sector to Cabinet in the next number of weeks.

But Tánaiste Mary Harney said this afternoon it was unhelpful for Cabinet colleagues to comment publicly on these issues before a decision has been made.

She is understood to be resisting any proposal to allow the DAA to run terminal over fears it would restrict competition.

Mr Cullen also said the maximum capital for the value of the Aer Lingus could not be realised by selling a minority stake in the company. This the clearest signal yet that the Government intends to sell-off a majority shareholding in the airline.

Fine Gael said Minister Cullen's proposals for Aer Lingus and the new terminal at Dublin Airport indicated a rift in the Cabinet between its Fianna Fáil and PD members.

Fine Gael transport spokeswoman Olivia Mitchell claimed the Minister for Transport seemed "terrified of losing support from the unions over who should build the new terminal.

"Hence the least sensible option is being touted, whereby Dublin Airport Authority would provide the new terminal," she said.

A Department of Transport spokeswoman earlier insisted no decision on who will own and run the second terminal had been taken.

Mr Cullen told the conference today that for too long, there has been a short-term approach with Aer Lingus with "crisis plans rather than expansion plans being the norm".

He said the Government was determined that "for the first time there will be investment for growth rather than just short-term funding for restructuring or to help in a time of crisis".

Mr Cullen said his officials were "working to achieve increased access for Irish airlines to the critical North American marketplace".

He also said the Government was "firmly committed" to supporting Shannon and Cork airports, which he believed would become "an ever-more important part of both our national and regional transport infrastructure".