James Reilly (Dublin North, Fine Gael)

I congratulate the Minister on her new portfolio, which, as previous speakers indicated, is extremely important and which has a great deal of potential. I hope she will exploit that potential to the fullest possible extent in order to assist those in the tourism industry.

I thank Deputy Mitchell for moving this motion, particularly as tourism is a key issue at present. Those in the industry estimate that the travel tax is responsible for €480 million of the €1.2 billion decrease in tourism incomes. The tax brings in €91 million to the Exchequer. If one takes it that 20% would be the taxable income from €480 million, then that is almost €100 million. In view of the fact that 3,000 jobs have been lost at a cost of €21,000 each per annum, the figure rises to €163 million. This means that the net loss already stands at €70 million. The tax is, therefore, costing the Exchequer at least that amount. This is before one considers the effect it has on small local bed and breakfast establishments and hotels and the grocery shops and other businesses which supply them with goods and services.

The area of Fingal in which I reside and which I represent has great tourism potential, particularly as much of it is located next to the Irish Sea. In that context, the travel tax is having an extremely negative effect on families in Swords, Malahide, Balbriggan, Rush, Lusk and Skerries which are dependent on this industry. We ought to listen to those - including the tourism renewal group, Fáilte Ireland, the Commission on Taxation, the National Competitiveness Council, IBEC, the Irish Tourist Industry Confederation, Ryanair, Cityjet, Aer Lingus and the Irish Hotels Federation - who have requested that the tax be abolished. The tax does no favours to the Dublin Airport Authority, the companies which serve the airport or anyone who is employed there.

Jobs are being put at risk as a result of this tax. The only thing which compares to this crazy and hare-brained measure is the increase in VAT which the Minister for Finance introduced and then admitted was costing the country hundreds of millions of euro. However, he also failed to take action in respect of that matter. The writing is on the wall. This tax must be removed.

A body that could deal with the excess bed capacity that exists in hotels must surely be established under the aegis of the Minister's Department. This body could put in place an initiative to encourage the Irish Hotels Federation, the airlines and Fáilte Ireland to take action - including by means of offering cheap flights - in order to attract more visitors to this country and fill some of that capacity.

Deputy Mitchell stated that, in Government, Fine Gael would abolish this tax. We hope that in response to such a move, Ryanair and Aer Lingus would restore the routes they cut as a consequence of the introduction of the tax.

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