Harney denies Cabinet split on aviation

TÁNAISTE Mary Harney yesterday denied there was a Cabinet split on aviation policy as the Government took a cautious approach towards reaching a final decision on the future of Aer Lingus and a second terminal for Dublin Airport.

Amid reports that the contentious aviation issues would have seen disagreements between Fianna Fáil and the PDs at yesterday’s Cabinet meeting, Tánaiste Mary Harney played down speculation that she would insist on a privately owned terminal.

“The only issues that are important here are capacity and competition, who may own such a facility is not the issue,” she told Fine Gael’s Enda Kenny during leaders questions.

Earlier at the Government’s weekly Cabinet meeting, Transport Minister Martin Cullen outlined an aide memoire on aviation policy which included proposals on the Shannon stopover, the privatisation of Aer Lingus, and the construction of a second terminal for Dublin Airport.

The ensuing discussion was described as long. However, no decision was asked for or given.

Although a spokesman for Taoiseach Bertie Ahern said he was happy with what he thought was “a good and full discussion”, no final Government decision will be made until after Easter when the matter is returned to Cabinet.

A spokesman for Mary Harney declined to confirm details of the proposals circulating in the press saying it was too early to comment “until such time as a solid proposition is on the table”.

However, it is widely anticipated that a publicly owned second terminal, albeit one that might be privately run, remains at the forefront of the Government’s agenda.

On the future of Aer Lingus it is expected that up to 50% of the airline could be sold to help fund needed investments in new aircraft while a possible phasing out of the Shannon stopover is thought to form the third prong of the Government’s proposed aviation package.

Government and union sources strenuously denied that a publicly owned second terminal was in any way a barter for the unions relinquishing their stringent opposition to any sale of Aer Lingus.

However, given that there is a commitment to an independent terminal for Dublin Airport in the Programme for Government, and that there was criticism from some PD quarters yesterday, further backroom manoeuvres can be expected between the Government partners.

Despite months of consultations, unions also remain opposed to any sale of Aer Lingus and any decision to end the Shannon stopover.

In addition, if a publicly owned terminal is decided on, detailed and likely protracted negotiations on working conditions will have to begin pushing the opening date for the new development further into the future.