Opposition parties have criticised yesterday's Cabinet decision on the future of Dublin airport and the sale of the majority Government stake in Aer Lingus.
Minister for Transport Martin Cullen said the Aer Lingus sale would allow it "to secure funding for new aircraft and in turn to compete and win new routes".
FG's Olivia Mitchell
However, he refused to be drawn on how much of Aer Lingus would be sold, although he insisted the Government would retain "at least 25 per cent". The method of sale was also not disclosed.
The new Terminal Two is to be owned by the Dublin Airport Authority (DAA) and built by 2009. There will then be an open tendering process to decide who will operate it. The DAA will be allowed apply to run this terminal.
In the short-term, a new pier will be built at Dublin airport by 2007, giving the existing terminal new parking stands for planes.
Preparatory legal and regulatory work will begin to ensure that when the two terminals reach their capacity of some 30 million passengers per year, a third terminal can be built.
Labour transport spokeswoman Róisín Shortall said the decision to sell a majority of Aer Lingus was "shameful" and would jeopardise Ireland's national interests.
"The Labour Party believes that it is essential that Aer Lingus should remain under public control. The high number of direct flights to and from various destinations which Aer Lingus operates has been critical to our tourist industry as well as to foreign investment in key Irish industries," she said.
Fine Gael claimed Fianna Fáil had "won the battle to keep the second terminal at Dublin airport in State hands". The party's transport spokeswoman, Olivia Mitchell, said the promise of a third terminal was merely a "fig-leaf" for the PDs.
"The consumer and wider national interest has been ditched in favour of a party political fudge that serves as a textbook example of how not to govern or make decisions," she added.
Sinn Féin's Sean Crowe said the decision to sell a majority of Aer Lingus was "an act of national sabotage".
He said: "I can't help thinking that this particular announcement today is the price the workers at Aer Lingus and their families, as well as the Irish taxpayer, is going to be forced to pay to save the embarrassed blushes of the PDs, who didn't get their way on the second terminal."
Green Party leader Trevor Sargent described the aviation package as "a classic Government fudge". He said the proposals on the terminal would "do little to ease the queues of people seeking to board flights at Dublin airport".
Progressive Democrats transport spokesman Senator Tom Morrissey said the raising of equity capital for Aer Lingus was a key commitment of his party at the last election. "That will now be achieved with the selling off of a majority stake. The airline will benefit, those who use Aer Lingus will benefit, and those who
work for Aer Lingus will benefit."
But the Dublin Airport Authority welcomed the announcement and said it was looking at two potential sites for the new facility. It said building costs could run between €130 million and €190 million, but that ancilliary costs would come to about €100 million.
The Government's long-awaited aviation package yesterday represents the biggest transformation of Irish aviation since the foundation of the State
The Cabinet agreed the package of measures yesterday after months of difficult negotiations between Fianna Fáil and the Progressive Democrats.
Mr Cullen last night hailed the announcement as "the first-ever comprehensive plan for the long term success and growth of Irish aviation".