Public differences have emerged between the coalition parties over plans for the new terminal needed to relieve congestion at Dublin airport, writes Arthur Beesley, Senior Business Correspondent.
The differences between Fianna Fáil and the Progressive Democrats surfaced when Minister for Transport Martin Cullen left open the possibility that the Dublin Airport Authority, the public body that owns the existing terminal, could run the new facility.
The differences appear to centre on whether the authority should operate as well as own the new terminal.
After addressing a management conference in Wicklow yesterday, Mr Cullen said he was "equally fine" with suggestions that the Dublin Airport Authority or a private operator could run the terminal.
The Tánaiste, Ms Harney, responded to Mr Cullen within hours, saying she did not think it was "very helpful" for Cabinet colleagues to discuss an issue in public that was coming before the Government. The matter was not yet agreed by Cabinet.
"It's certainly not very helpful from the airport's point of view. I've made it clear on a number of occasions that I favour competition in Dublin airport. It's in the best interests of passengers and those who use the facility.
"Competition has done wonderful things for our economy generally, and it could do wonderful things for Dublin airport."
Some senior sources suggested in private last night that the two sides were near agreement on the issue.
However, there was no indication of any imminent agreement in the public remarks of Mr Cullen and Ms Harney yesterday.
Sources close to the Tánaiste elaborated on these remarks by saying that the Government decision was pending on the issue.
"In that context, the Tánaiste was pointing out that she and all ministers are clearly precluded from any comment," the sources said.
However, the stance adopted by Ms Harney is at odds with Mr Cullen, who indicated that the Dublin Airport Authority could operate and own the new terminal.
"In terms of the infrastructure itself, they have to be in control. You have to have a cohesive management structure in a critical piece of national infrastructure like Dublin Airport Authority," Mr Cullen told reporters.
"My view is then it's up to the Dublin Airport Authority to look to the operating of that terminal. If they can do a deal with the unions that stands up to international assessment that's fine with me.
"If that's not possible, and it goes out to an independent operator, that's equally fine."
Mr Cullen was speaking at the Irish Management Institute conference at Druid's Glen, Co Wicklow.
At a question and answer session after he delivered his prepared script, the Minister also disclosed publicly for the first time that he wants to privatise a majority stake in Aer Lingus.
On the plans for the new terminal, Mr Cullen also indicated yesterday that the Government was unlikely to approve the purchase of lands adjacent to the airport which are owned by businessman Ulick McEvaddy.
"Mr McEvaddy is quite entitled to look at his own means, his own opportunities, and his own investment. But remember this. Where the McEvaddy land is, Aer Rianta own more land.
"I operate on behalf of the taxpayer. I'm hardly going to invest a huge amount of taxpayers' money for land that I don't need where I have land already."
Mr Cullen said he was not against private sector involvement in the airport, but added that the Dublin Airport Authority was the legal entity responsible for the site.
"I'm stating clearly to you that the legal entity with these responsibilities at the moment is the Dublin Airport Authority, and they should be given the opportunity of going ahead and doing the job that they're charged with doing."
Michael O'Leary of Ryanair said an independent terminal was promised by the Government when it came into office in 2002, and that promise was now being broken.
Asked by reporters yesterday about the differences that had emerged during the day over the terminal, Taoiseach Bertie Ahern would only say: "I will let the Minister comment on that." He refused to comment any further.
