Existing law covers latest aviation sector plans

No additional legislation is necessary for the establishment of a second terminal at Dublin airport or for the sale of a majority stake in Aer Lingus, Minister for Finance Brian Cowen confirmed in the Dáil yesterday.

"The decisions taken by the Government on a second terminal at Dublin airport do not require further legislation," he said. "It will be dealt with under existing legislation. The provision of external equity for Aer Lingus, should that be the analysis of the advisers appointed by the Government, does not require further legislation. It is already provided for in the Aer Lingus Act 2004."

He told TDs that when he had been minister for transport, the Government had been dealing with "crisis management". Now "we are dealing with expansion plans that will put the aviation sector in a proper framework and enable us to deal with the increased capacity and develop the airport's potential".

Fine Gael leader Enda Kenny said there was an apparent contradiction between what Minister for Transport Martin Cullen had said last week when he ruled out an independent terminal as neither feasible nor practical, and the decision announced on Wednesday.

Green Party finance spokesman Dan Boyle asked whether an "ideologically pure third terminal" would be run by a separate airport authority.

Mr Cowen said of a third terminal that "the Government has decided it will commence pre-planning for this more long-term option by preparing the legislative and regulatory framework to facilitate the development".

Sinn Féin finance spokesman Caoimhghín Ó Caoláin said the decision was a "sell-off" and a "sell-out". Both he and Labour leader Pat Rabbitte called for a debate on the sale of a majority stake in Aer Lingus.

Rejection allegations that the Government was selling-out, Mr Cowen said that a "process of external investment in the airline is required to enable it to grow, particularly on the long-haul routes, and thereby increase its profitability, its business and broaden the prospect of further job creation in the future".