Cabinet to approve Aer Rianta break-up next month

The Department of Transport confirmed today that legislation to allow for the break-up of Aer Rianta would be brought before …

The Department of Transport confirmed today that legislation to allow for the break-up of Aer Rianta would be brought before the Cabinet this side of Christmas.

The legislation, which will see the company broken-up into three separate competing entities, is also expected before the Dáil ahead of its recess.

Meanwhile the Department of Transport has begun an investigation in to the leaking of a confidential Government memorandum on Aer Rianta to the Labour Party leader, Mr Pat Rabbitte.

The leak, which revealed the Minister for Finance argued the drawing up of legislation for the break-up of Aer Rianta was premature, may result in a criminal investigation.

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A spokeswoman told ireland.comthe secretary-general of the Department, Ms Julie O'Neill, was in the process of compiling all the "factual information" in relation to the document.

She said only when the Department's own inquiry is complete will a decision be made on whether to involve the Garda.

Ms O'Neill is working to ascertain how many copies of the memo were circulated and a list of everyone who received a copy.

In a heated leaders' questions in the Dáil yesterday, the Taoiseach, Mr Ahern, and the Minister for Transport, Mr Brennan, clashed with Mr Rabbitte over the contents of the memo and how he got hold of it.

Mr Ahern claimed the leak involved a criminal offence under the Official Secrets Act.

The memo was prepared by Mr Brennan before he sought Cabinet approval for the introduction of legislation to break-up Aer Rianta.

In the document the Minister outlines a number of concerns relating to the competitiveness of Shannon and Cork if other regional airport were receiving State aid.

The memo also includes observations from the Department of Finance that warned it was premature to proceed with the drafting of legislation until an advisers' report had been received.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times