Plans to bring a comprehensive package on aviation to the Cabinet tomorrow were looking increasingly unlikely last night, with Fianna Fáil and the Progressive Democrats still at odds over proposals for a second terminal at Dublin airport.
Ministers had been confident last week that an agreement could be reached on who would be allowed to tender for and operate the second terminal, and that the full proposals would be ready for Cabinet tomorrow.
Despite discussions between officials throughout the weekend, Government sources indicated there was "no change" as of last night, and that both sides were still in disagreement on whether the Dublin Airport Authority (DAA) could be allowed to operate the second terminal, which will be owned by the State.
While Government sources were not ruling out an eleventh-hour agreement in time for tomorrow's meeting, they said it was looking increasingly unlikely.
Tánaiste Mary Harney is still insisting that the second terminal should not be operated by the DAA, but Minister for Transport Martin Cullen believes the State-owned company should be allowed to tender for the contract to run the new facility.
The possibility of a third terminal has also been mooted during negotiations as forming part of compromise package.
Yesterday Opposition politicians accused the Taoiseach and Government of "dithering".
Labour's transport spokeswoman Róisín Shortall said people would react with "disbelief" that the Government was considering a third terminal when a decision on a second terminal had yet to be made.
"No case has been made for a third terminal, and it is clear that this option is only being considered in order to defuse the row in Government, and to allow both Fianna Fáil and the PDs to claim a political victory."