Mary Hanafin (Dún Laoghaire, Fianna Fail)

The Government's framework for economic renewal included a commitment to develop an action plan to drive export-led growth over the coming years. Accordingly, the Government's new strategy and action plan for Irish trade, tourism and investment to 2015, Trading and Investing in a Smart Economy, was drawn up by representatives from the relevant key Departments and agencies, including my Department, Tourism Ireland and Culture Ireland.

This strategy contains targets for job creation, exports, tourist numbers and inward investment projects by 2015 and details on how the Government and its agencies will achieve these priorities and targets. The tourism related elements of the new strategy draw on the robust analysis already carried out by the Tourism Renewal Group, in preparing its report and framework for action, which was a parallel component of the overall framework for economic renewal.

The new strategy does not specifically address the air travel tax. However, it does recognise the absolute importance of access transport for tourism, as well as for trade and investment. The

Tourism Renewal Group reviewed the impact of the air tax, drawing on analyses by the tourism agencies, the tourism industry and the airlines, and recommended that the air travel tax be abolished.

I have discussed the tax in bilateral meetings with the airlines and listened to their concerns about it. The issue has also arisen in meetings with other bodies involved in the tourism industry and was discussed at the recent forum of tourism interests that I convened as part of the development of the Department's new statement of strategy. I have relayed these concerns to the Minister for Finance and will be discussing them with him further in the context of the forthcoming budget.

As Minister with responsibility for tourism, I am concerned about the potential for the tax to affect the competitiveness and viability of air routes to Ireland. From a purely tourism perspective, it would be preferable not to have an air travel tax. However, I appreciate that the Minister for Finance considers it to be an important revenue saving measure, with an estimated full year yield of €125 million.

I assure the Deputies that the issue of the tax is a core part of my discussions with the Minister for Finance ahead of the budget.

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