In addition to considering the future of Aer Rianta, the Government will also finalise its decision on two proposals to develop new terminals at Dublin Airport and on a plan to create an executive jet centre at Casement Aerodrome at Baldonnel in west Co Dublin.

Of these, it is expected that the Minister for Public Enterprise, Ms O'Rourke, will favour the plan by Dr Tony Ryan to develop an executive airport facility at Baldonnel.

It is considered unlikely, however, that Ryanair's plan to create a "low-cost" terminal at Dublin Airport or that a controversial proposal by the McEvaddy brothers to build a terminal on land they own adjacent to the airport will be accepted.

Dr Ryan, who first proposed developing a full commercial airport at Baldonnel seven years ago, plans to spend £5 million (€6.35 million) on a terminal for the exclusive use of private aircraft.

In the Dail last week, the Minister for Defence, Mr Smith, said "the greater utilisation of this under-used resource [Casement Aerodrome] could have benefits for both military and civil aviation in Ireland".

Mr Smith said a specific proposal would be made to Government following publication of the consultant's report to Ms O'Rourke. "My main concern, in examining these proposals, would be to protect the military aviation interests at the aerodrome. The question of extending usage of these facilities for hire or reward requires careful consideration as it may have implications regarding licensing of the facility for commercial use," said Mr Smith.

A spokesman for Dr Ryan said this week that he would have no problem if a proposal to develop a civilian facility at Baldonnel went out to tender. "He doesn't care who gets Baldonnel, as long as there's an executive jet facility in Dublin." Adequate facilities are not available at Dublin Airport due to space constrictions, claimed Dr Ryan's spokesman.

"This is a wonderful national asset and it could be used to great effect," said Dr Ryan's spokesman. While the Air Navigation Act would have to be changed, Dr Ryan's proposal does not involve any financial outlay for the State. It would co-exist with the military use of the aerodrome.

Dr Ryan's plan would involve at least 10 arrivals or departures per day at the Aer Corps headquarters, amounting to about 3,000 or 4,000 movements each year on the basis that appropriate facilities - hangers etc - were available.

It is understood that Dr Ryan sees such a facility as a precursor to the development of a full airport at Baldonnel, but this is very much a long-term plan.

The proposal by Dr Ryan envisages a "Georgian style" terminal, in keeping with Dublin architecture, the use of existing air traffic control and fire facilities.

In the case of Ryanair's plan, Ms O'Rourke has stated publicly that any proposal to build a private facility on State lands, such as those at Dublin Airport, would have to be subject to public tender.

It is understood that Ms O'Rourke has met the airline on a number of occasions recently, but that there is no question of a quid pro quo arrangement under which Ryanair would initiate five new services from Shannon in response to acceptance of its plans for Dublin Airport.

Ryanair has proposed basing three aircraft at Shannon if its plan to invest £12 million in the new terminal at Dublin Airport is accepted. This would see the initiation of 10 new services to European airports and the company has said this would bring at least one million extra tourists into the State each year.

The Minister, however, is thought not to be in favour of the plan. The principal objection relates to the use of State land by a privately owned company to meet its own commercial objectives.

But is also understood that certain Cabinet members are mindful of a disruptive baggage handlers' strike over union recognition at Ryanair in early 1998 which resulted in virtual shutdown of Dublin Airport. Ministers resented what they viewed as the inflexibility of the company at the time and this is likely to colour the Government's decision on the possibility of putting a second terminal out to tender.

However, the Tanaiste, Ms Harney, said last week that she was "very positive" about Ryanair's suggestion. In a statement this week, the Labour Party's public enterprise spokesman, Mr Emmet Stagg TD, rejected Ms Harney's support of Ryanair as acting "like a cheerleader for one Irish airline".

"Minister O'Rourke cannot allow the Tanaiste to dictate policy or to unilaterally promote the vested interest of Ryanair," said Mr Stagg.

Ms O'Rourke is also understood not to be in favour of a proposal by the McEvaddy brothers to build a new terminal on their land adjacent to the airport in north Co Dublin.

This was the subject of controversy last summer when it emerged that both the Tanaiste and the Minister for Finance, Mr McCreevy, had used a villa owned by the McEvaddy brothers in the south of France during a holiday.