Martin Mansergh (Tipperary South, Fianna Fail)

I am pleased to take the opportunity to comment on the air travel tax and express my regret at the decision of certain airlines to withdraw flights and services from Shannon Airport.

The Minister accepts that the airline industry, with other industries within the transport sector and beyond, continues to go through a difficult trading period. However, he does not accept that the decline in passenger numbers experienced by the airports in the State is due to the introduction of the air travel tax. The difficult trading period in the airline industry arises primarily from weak world economic activity. The decline in air travel is an international phenomenon and as a result, aviation services are contracting on a global basis. As Deputies may be aware, Airports Council International, ACI, has reported that European passenger traffic from January to July was down 8.7% compared to the same period in 2008. The International Air Transport Association reports also reflect such declines.

In the case of Ireland, the decline in passenger numbers through our airports is broadly in line with that in our international counterparts, including those where there is no travel tax in place. This downward trend is evident for periods prior to the introduction of the air travel tax. Furthermore, passenger numbers for other modes of transport such as railways have also experienced broadly similar declines. While this is not desirable, it is clear that the air travel tax is not the substantive cause of the decline in passenger numbers.

Ireland is not unique in applying a tax on air travel. Many countries worldwide and within the European Union apply similar taxes. For example, our nearest neighbour, the United Kingdom, has applied a similar tax for a number of years. It recently revised the air passenger duty to have four bands of 2,000 miles each and increased the rates just two days ago. The new rates are as follows: band A, 0 to 2,000 miles, £11-----

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