Brian Lenihan Jnr (Dublin West, Fianna Fail)

I am pleased to take this opportunity to address the House on the subject of the air travel tax and the wide range of issues raised in the motion. I understand that last night my colleague, the Minister of State, Deputy Seán Haughey, did not have the opportunity to address some of the issues raised in the motion and I hope to address these outstanding points.

Deputies are aware of the general economic position and the responsibility of the Government to bridge the gap between expenditure and income. The air travel tax is but one of the measures adopted for this purpose and so far it has raised €99 million and will raise €125 million in a full year. Any party coming into the House arguing for the abolition of a tax has a responsibility to specify an alternative way of raising that revenue. Is Fine Gael suggesting we raise it by increasing income tax, VAT or excise duty? It has been recognised by all commentators that our revenue base has been very weak in recent years. There is an onus on anyone advocating its further depletion to identify where that revenue base can be shored up. Our options are limited and given the significant drop in the tax take, we have to find ways to raise moneys which we need to pay in part for vital public services. It is not an option for Government to succumb to every eye-catching interest group that walks past these buildings. That may be a luxury in which Opposition Deputies can indulge from time to time - not always, I accept - but we cannot.

In shoring up the gap between what we as a State take in and what we spend, the Government has to take an overall view that ensures the burden is spread fairly across all sectors. I would be the first to acknowledge that low cost travel has been good for Ireland. The pioneers in this area deserve to be commended. Mr. O'Leary has spoken very eloquently on the subject of this tax and I have listened very carefully to what he has had to say about it. However, it is simply not credible to argue that the new tax is to blame for the fall in passenger numbers.

We need to bring a sense of balance to this aspect of the debate.

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