Dáil debates

Tuesday, 23 March 2010

7:00 pm

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)

I am happy to support this motion that has one simple message, namely, to abolish the €10 airport tax that is crippling the tourism industry. We are going through a global recession and both air traffic and tourism have suffered as a result. Passenger figures for international airports are levelling off, while some are increasing. Sadly, however, the figures for Ireland continue to deteriorate and even the latest figures for the early months of this year show a decline.

Last year, tourism revenue dropped by €1.1 billion on the previous year. Meanwhile, overseas visitor numbers fell by almost 1 million over the same period, which represents an 11.6% drop. The UK is Ireland's largest tourism market but UK visitors declined by 16% in 2009. Visitors from North America were also down, by 8%. There has been a consequent effect on employment in the sector. It is estimated that 31,000 jobs were lost last year and, unfortunately, it is predicted that a further 10,000 jobs will be lost this year. Those are stark figures. It does not stack up to say that there is a global recession because figures for other European cities are stabilising.

We must re-examine this punitive travel tax which has been imposed. Previous speakers have said that airlines can clearly track passenger movements showing that the €10 tax is a disincentive for intending visitors. It is nonsensical to impose such a tax on a small island nation that is so dependent on air connections to mainland Europe and the USA. The tax is strangling our airports and tourism sector. It makes no sense. The tax was introduced previously in other countries but they quickly saw the folly of their ways and abandoned it.

I appeal to the Government parties to examine this matter sensibly. We have heard about the downward figures and the pleas from airlines to abolish the tax. Let us put it up to those airlines and ask them whether they will restore axed routes to our airports if the tax is abolished.

The situation is serious. I speak as a Deputy representing the constituency which includes Cork Airport. Last year, passenger numbers through Cork Airport were down by 15%, falling from 3.25 million in 2008 to 2.7 million in 2009. The figures for January this year are down by 17%, which is alarming. In recent weeks, we have lost two vital connections to the UK because BMI pulled two routes. I appeal to the Minister to examine this punitive tax, which makes no sense to an island nation.

While Shannon can speak for itself, I wish to appeal for the independence of Cork Airport. It does not make any sense for the Dublin Airport Authority to make decisions for Cork. The DAA does not have a sense of what is going on in the Cork region or what a vital piece of infrastructure Cork airport is. An independent airport could act on its own behalf, while competing with other airports on this island. We need such competition which would bring energy and enthusiasm to the airport. The word "competition" does not exist in the Minister's vocabulary, but this important strategic decision could and should be taken by the Government.

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