Jan O'Sullivan (Limerick East, Labour)

We raise this matter in the context of fears about the future of Shannon Airport, with particular reference to Ryanair threatening to pull out from April next year. In effect, this would mean that 1.4 million passengers would be lost to the airport - 75% of Ryanair traffic - as the airline is planning on leaving only one aircraft there. In 2007 Ryanair accounted for 46% of overall passenger numbers, while 59.6% of overall passenger numbers at the airport were Ryanair-generated in 2008. This would create an enormous difficulty for it.

While Shannon airport faces many difficulties, the tax issue is one that has been cited by Ryanair. I know that at times Ryanair tries to force unreasonable bargains but in this case it is absolutely right. The €10 tax is regressive and unfair, a barrier to travel and anti-competitive. In the context of Ireland being an island nation which needs to encourage tourism, facilitate travel and have balanced regional development, the tax is clearly a threat to the future of Shannon Airport.

It is also a problem in the context of tourism. A statement issued today by the Irish Hotels Federation calls for its abolition. It is worth noting that the federation gives statistics indicating that 200,000 people across the country are employed in the tourism industry and that its contribution to the economy in 2008 was €6.3 billion. All that the travel tax has brought in since it was introduced and became effective on 30 March is €57.9 million, which is far less than what was predicted. Some €57.9 million in the context of a tourism budget of €6.3 billion indicates that the tax needs to be totally reconsidered. If it discourages tourists from coming to this country - tourism is such an important industry - the detrimental effect it is having throughout the country can be imagined. We are particularly concerned about Shannon Airport. This tax, if it drives Ryanair out, will pose huge problems for the airport and the region.

See this speech in context