Tánaiste Mary Harney has not seen any formal proposals concerning the building of a new terminal at Dublin airport, it was disclosed yesterday.

Ms Harney said she wanted competing facilities at Dublin airport but, speaking on the Breakfast Show with Eamon Dunphy on NewsTalk 106, said that no Government proposals had been presented to her for decision so far.

A spokesman for the Minister for Transport, Martin Cullen, yesterday confirmed that no formal Government proposals had been circulated by the Department of Transport to date.

However, other sources suggest various proposals had been discussed informally. No decision is expected to be taken on the matter at a Cabinet meeting today.

Because last week's meeting was cancelled due to the Pope's death, there is a significant backlog of business today and there still appears to be a lack of agreement between the Progressive Democrats (PDs) and Fianna Fáil.

The issue of the terminal and the future of Aer Lingus are not on today's official agenda, although the 2004 annual results of Aer Lingus are expected to be approved. The airline will formally publish the results on Thursday.

Ministers are believed to broadly support selling off 51 per cent of Aer Lingus and building a new terminal at Dublin Airport, most likely on the north apron site.

The key question is, who owns and operates the terminal facilities. Some sources suggest the Dublin Airport Authority will be given a leading role, but Ms Harney made it clear yesterday she wanted to see "competing'' facilities.

At the Progressive Democrats' annual conference, Ms Harney was unequivocal about what she wanted the Government to do. "Competition is not just about lower prices. It's also the best way to get improved services and more innovation for all consumers. You can never have too much competition. That's why we believe so strongly in competition between airports and at Dublin airport."

Fine Gael's transport spokeswoman, Olivia Mitchell, yesterday warned that Dublin Airport Authority's proposals for a second terminal would limit capacity, restrict the number of new flights and push up costs.

She called on Mr Cullen to stop wasting time and to settle the matter as soon as possible. "Reports that the Cabinet is set to approve a publicly-owned second terminal at Dublin airport are extremely disappointing as it would be very short-sighted to put Dublin Airport Authority in charge of the second terminal," she said.

"The site preferred by Dublin Airport Authority is the wrong location because it only has capacity for limited growth. The restricted nature of the site would force the authority to develop a long, narrow, one-sided terminal offering fewer aircraft stands, which would reduce the commercial viability of the terminal. This in turn would require higher landing charges, making Dublin less successful in attracting airline business."