The 'dirty war' at Aer Rianta

Fallout from the "dirty war" at Aer Rianta, involving supporters of the former minister for transport, Mr Brennan, and the former…

Fallout from the "dirty war" at Aer Rianta, involving supporters of the former minister for transport, Mr Brennan, and the former chairman of the semi-State company, Mr Noel Hanlon, is damaging public confidence. The latest episode concerns the presentation of five very expensive watches to three outgoing and two former members of the board, including Mr Hanlon himself.

The gifts, regarded as exceptionally generous, were sanctioned at a board meeting. But the fact that the majority of outgoing board members did not benefit from this largesse, while favoured former members did, has raised questions of propriety and business ethics.

For weeks now, a steady stream of material designed to damage both Mr Hanlon and Mr Brennan has been directed towards the media. It followed months of in-fighting between the two men as they sought, in turn, to protect and to dismantle the company. And it reached a peak when, on his last day as chairman, Mr Hanlon gloried in the removal of Mr Brennan as minister for transport in a Cabinet reshuffle and accused him of seriously damaging the company, preventing development at Dublin Airport and allowing powerful financial and vested interests to dictate the Government's agenda.

Earlier, an attempt was made by Mr Brennan to block a severance package of €750,000 granted to resigning Aer Rianta chief executive, Ms Margaret Sweeney, which had been sanctioned by the outgoing minister for finance, Mr McCreevy. Later on, attention was drawn to the fact that Mr O'Hanlon had been allowed by the board to retain his 2003 Mercedes, valued at €50,000, when he left the company.

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It is rare for the board of a commercial semi-State company to publicly challenge government policy. But it happened on this occasion when Mr Hanlon and his colleagues made common cause with Aer Rianta workers, and the Irish Congress of Trade Unions threatened the continuation of social partnership. Mr Brennan was removed, in spite of the fact that the Tánaiste, Ms Harney, had strongly and publicly supported his efforts to implement reform in the transport sector. Since then, the Taoiseach, Mr Ahern, has insisted that policy has not changed and that the aviation legislation introduced by the Government will be given effect.

Whatever happens in relation to Shannon and Cork airports - their futures will not be finally decided until business plans are produced in 2005 - a great deal of urgency attends the need to develop Dublin Airport. Two years ago, Mr Brennan, with a view to bringing in the private sector, instructed Aer Rianta not to build a new terminal. But stalemate resulted. The airport is now overcrowded and facilities are inadequate.

The new Minister for Transport, Mr Cullen, must get a grip. And the Dublin Airport Authority, which replaced Aer Rianta last week, must be encouraged to develop the facility in the best interests of the travelling public and the taxpayer.