Olivia Mitchell (Dublin South, Fine Gael)

I recognise and welcome the budgetary measure to give older persons free travel on the trains. It may not go as far as I had hoped but it is welcome. The travel tax, however, was not recognised. The tourism renewal group recommended ending it as a major survival action. It is also a major recommendation of the Competitiveness Council in this month's report. I do not understand how the Government missed the opportunity presented by the budget to get rid of a travel tax that every business organisation says is destroying Irish tourism. It also makes Irish business very difficult too.

Yesterday, I read in the newspapers that another airline went to the wall. I heard the Minister for Transport saying before the budget was announced that he did not believe this tax had any impact on travel but he is not talking to the airlines because he does not seem to get the point that the airlines are affected. Hotels are not because they do not connect with decisions made in Germany or elsewhere.

The airlines have not passed on this tax because their sales are very price sensitive. Instead they are moving their bases and planes out of Ireland. Yesterday, we heard that Ryanair has opened a base in Malaga going to 19 airports, none of them in Ireland. This is a disaster waiting to happen. Already Aer Lingus is teetering on the brink of collapse. Will the Minister bring the message to Cabinet that this travel tax must go before it does irreparable damage to Ireland?

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