McCreevy opposed quick Aer Rianta break-up - Rabbitte

Labour leader Mr Pat Rabbitte claimed today the Minister for Finance, Mr McCreevy, opposed proceeding with legislation to break up Aer Rianta when it was brought before the Cabinet in October.

Mr Rabbitte said Mr McCreevy felt introducing of legislation at that stage was "premature" because none of the outstanding issues in relation to share capital and regulation had been resolved.

He said: "The Department of Finance pointed out to Government that consultants, with significant legal input, are being engaged as advisors to assist the Department of Transport in all aspects of the restructuring process and warned that the premature drafting of legislation could 'straightjacket' the work of advisers".

During leaders questions in the Dáil this afternoon, Mr Rabbitte asked the Taoiseach why Minister of Transport was proceeding with legislation to break-up the company against the advice of the Department of Finance "creating chaos in the immediate industrial relations environment".

The Labour leader said his party had also discovered a memo brought to the Government on Aer Rianta which claims existing State aid to Kerry, Cork and Galway airports would have to be "carefully reassessed" in order to assist Cork and Shannon airports to compete on a level playing field.

Mr Rabbitte said the implication for the regional airports will be disastrous if the Government proceeds with the break-up Aer Rianta.

He said the smaller regional airports will not be able to function in the absence of Exchequer funding and that the Government was "deliberately concealing" information regarding plans to cut future State aid to these airports.

Mr Ahern dismissed Mr Rabbitte's comments saying the regional airports received significant State funding and would continue to do so.

He said this Government totally supports the regional airports but there are issues around Shannon and Cork airports "which we have listened to for years".

"The people in those particular regions want to get autonomy. They want, within the Aer Rianta structure, to allow themselves separate companies where they can market they regions and are not dependent on decisions made in Dublin," he said.