Simon Coveney (Cork South Central, Fine Gael)

It is unfortunate that we must debate four resolutions at the same time because we support some but disagree with others. We must vote against all four as a result of the way this is structured. On the mineral oil excise, I do not understand why the cost of fuel is not being increased by applying an increase in carbon tax.. Perhaps the Taoiseach will explain why this is so. In the past number of budgets we have made a deliberate effort to introduce carbon taxation to Ireland to provide a cost for carbon and change the mindset towards carbon and its impact on the environment in terms of emissions.

There is no extra carbon taxation in the budget but there are increases in excises, and I do not understand why we are pursuing an excise increase when we could have raised the same amount of money by applying an increase in carbon taxation on fuel and by continuing to pursue the carbon strategy, which has now stalled. Perhaps I could get a response from one of the Government spokespersons on that issue.

The measure relating to air travel tax is the reason we are voting against this grouping. Fine Gael believes it is insane to charge people for the privilege of coming to Ireland on their holidays or on business while we are trying to stimulate activity in the Irish tourism sector. We raised approximately €105 million this year by charging people €10 to leave this island and next year we will continue to charge them €10 until March, although we know the measure does not work and is reducing passenger numbers through Irish airports. Even after this we will continue with the folly of charging people for the privilege of coming here while we spend considerable sums marketing Ireland abroad to get them here in the first place. It is a disincentive to people coming through Irish airports if we charge for the privilege, although it is difficult to calculate exact figures. Fine Gael has long made the case that we should abolish the air travel tax because it has not worked and is not working. The damage being done in terms of the tourist industry and visitor numbers to Ireland far outweighs the revenue stream provided for the Government.

The Taoiseach mentioned the incentive which the Dublin Airport Authority announced today, which is also flawed. If passenger numbers travelling through Cork, Dublin and Shannon airports next year go above a value of €23.5 million, the DAA will give a rebate to the effect of what it would have cost those extra passengers to travel through Irish airport. This will go to all the airlines, depending on the percentage of passengers attributable to different airlines. In other words they are not incentivising airlines to increase passenger numbers because even if that does not happen, an airline will get the benefit. If, for example, Ryanair provides extra passengers to get us past the €23.5 million value, all the airlines will get the benefit rather than the airline which provided the extra passengers. That makes no sense.

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