Cabinet faces split over break-up of Aer Rianta

A SERIOUS split is emerging in Cabinet between Fianna Fáil and the Progressive Democrats over the break-up of Aer Rianta that could have implications for Government stability.

As the marathon talks on a national pay deal remained deadlocked last night, largely over the issue of Aer Rianta, sources indicated a solution backed by Finance Minister Charlie McCreevy and Transport Minister Seamus Brennan had hit strong opposition from Tánaiste Mary Harney.

Both ministers met with senior figures from SIPTU late on Wednesday and agreed a two-phase process to determine the future of the State airport company. They agreed that stand-alone companies be formed for each of the three airports. The sole remit of the companies would be to complete business plans. That would be followed by consultation with unions before the introduction of more substantive legislation, sometime next year.