The Minister for Transport, Mr Brennan, has referred the controversial issue of a privately owned second terminal to the new Dublin Airport Authority, which is due to replace Aer Rianta next month.

The idea of a privately owned terminal has been fiercely opposed by Aer Rianta unions and the company's chairman, Mr Noel Hanlon, has spoken of his preference for a single airport operator at Dublin.

However Mr Brennan said extra terminal capacity at the airport was needed and he hinted that more than one terminal may be required.

"I have asked the new airport authority to give me their very urgent views on how they might fit such a terminal into a new master plan for Dublin Airport.

"So in the next few months Dublin should be able to take a final decision on the structure of that second terminal and we look forward to discussing that with all the stakeholders, including the trade union movement," the Minister said.

He said based on the huge growth in passenger numbers more than one terminal might be required.

He was speaking after the inaugural meeting of the new Dublin Airport Authority.

He said the meeting marked a new beginning for Irish airports.

"The reasoning behind this new policy is to get more airlines, more passengers, to get more comfortable airports and to sweat the assets that we have in this state, to get more business for the country," Mr Brennan commented.

Only eight members of the new authority attended the meeting, but Mr Brennan said this was simply because four worker directors had not been nominated yet.

ICTU is currently trying to get agreement on 12 worker directors on behalf of the trade union movement. The 12 worker directors will be appointed to the three new airport authorities.

Mr Brennan, however, warned some worker directors that a new era had begun.

"One worker director in particular has engaged in a continuous campaign throughout the process of enacting this legislation. I understand how strongly he feels, but he must respect the legislation now passed by the Dáil," he said. He is believed to have been speaking about Mr Peter Dunne, who has been an Aer Rianta worker director for many years.

Pressed on whether he wished certain worker directors to serve or not, the Minister said he would not veto appointments because certain individuals opposed the break-up plan.

"People are entitled to have an opinion on Government policy. A particular director did take a strong stand and is fully entitled to do that. You have to balance that with the director's duties to the company as well," he said.

On the contentious issue of charges, Mr Brennan said capital investment made by Aer Rianta needed to be recouped and that meant no sharp falls in airport charges.

"Several reports have indicated that we have had a very high level of capital expenditure at the airport. The expectation that charges will fall is unrealistic. The capital invested in the airport is very substantial. It has to be recouped.

"But I don't see much scope for dramatic cuts in charges, because of the very high level of spending that has gone into the airport."

But he stressed that charges were ultimately a matter for the aviation regulator, Mr Bill Prasifka.