Kieran O'Donnell (Limerick East, Fine Gael)

I thank the Acting Chairman and welcome the Minister for Defence, Deputy Killeen, to the Chamber. The Minister is from County Clare and this issue is of specific relevance and importance to Shannon Airport and the wider mid-west region. The reason I raised this matter is Shannon Airport Authority launched its five-year plan today. It projects that it will increase its passenger numbers to 2.5 million by 2015. One factor that may be instrumental in achieving this target would be the removal of the punitive €10 travel tax. It made no sense at the time of its introduction and many other countries have removed similar measures. I heard the Minister for Tourism, Culture and Sport, Deputy Hanafin, mention this morning that the travel tax was up for discussion in the budget. I seek confirmation from the Minister, Deputy Killeen, that this €10 travel tax will be removed. As a Deputy for County Clare and a Minister from the mid-west region, I do not doubt that the Minister, Deputy Killeen, will do everything possible at Cabinet level to ensure the removal of the travel tax.

If one considers this issue from the perspective of Ryanair, its passenger numbers next year are projected to be approximately 400,000. In 2009, the equivalent figure was just short of 2 million passengers. Moreover, Michael O'Leary has stated that a major factor in the reduction in the number of flight routes, which have fallen from a peak of 35 to six, is the travel tax. There must be an element of common sense in government and it makes no sense to introduce a tax that brings in only approximately €100 million but that takes from an airport and a region by driving away tourist activity. This is short-sighted and a key feature of the Government has been that it has made decisions that are purely about short-term revenue collection but which have enormous consequences in the long term for employment and the number of flights arriving at Shannon in particular. The Minister is aware that passenger numbers are well down. The passenger numbers in 2010 are expected to fall by 800,000 from the equivalent figure of 2.8 million passengers last year to 2 million passengers this year.

One must ensure the measures in place do not discourage people from coming to Ireland. The Limerick and mid-west region have terrific amenities, a fantastic array of hotels and golf courses. Limerick city boasts such amenities as Thomond Park, the Hunt Museum, the city itself and the River Shannon. People should be encouraged to enter the region and the €10 tax constitutes a major impediment. The national plan produced by the Government today is 150 pages long. While I may have missed some of the small print, I did not see a reference to the removal of the aforementioned travel tax. The Minister should confirm either that this is mentioned somewhere in the document or, if it is not, that its abolition will be brought forward in the budget to enable Shannon Airport to increase its passenger numbers.

As the Minister is in the Chamber tonight, I will refer to another key element that will enable Shannon Airport and the region to drive forward, as the airport is a driver of tourism industry in the mid-west region and people in Limerick city are closely associated with it. Shannon Airport must be made independent, which always was the intention under the original legislation. The Minister should indicate when a review will get under way to ensure that Shannon Airport can be a stand-alone entity. However, on becoming independent to make decisions, it must be independent in a debt free way. It should not be laden down with debt and I have a number of views in this regard. First, one cannot compete with one's employer and Shannon Airport Authority competes with Dublin Airport Authority and terminal two. This simply is impossible and is akin to operating with both hands tied behind one's back. The airport must be allowed to operate independently and the Minister, Deputy Killeen, will be aware that Aer Rianta International was the brainchild of Shannon. It pulls in significant profits on an annual basis and I believe it should be allowed to return to the running of Shannon Airport. What is needed is an airport that is in command of its own destiny, that is not laden down with debt but is debt free and that can compete with the Dublin Airport Authority on an equal basis.

A key element in overall aviation policy is the immediate removal of the travel tax. The Minister should state tonight that this tax will be repealed in the budget, which would enable Shannon Airport to increase its passenger numbers to the benefit of the mid-west and the entire region.

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