Leo Varadkar (Dublin West, Fine Gael)

The Government's recent jobs initiative includes a three-pronged strategy to encourage inbound tourism. The first element is the proposed abolition of the €3 travel tax; the second is a new growth incentive scheme recently introduced by the Dublin Airport Authority, DAA; and the third is a more targeted co-operative marketing of new air routes from key source tourism markets by Tourism Ireland, the DAA and the airlines. My officials and I have held a number of discussions in recent weeks with the DAA and the four main Irish airlines about this initiative, and I have also written to all the other airlines operating services to and from State airports. The response has been broadly positive.

The DAA's growth incentive scheme is due to run for the period 2011-14. Passenger service charges at the three State airports will be rebated to the airlines once the threshold of the previous year's traffic total has been surpassed at the airport in question. The rebates to airlines will be in line with their contribution to the overall growth at the airport.

The Finance (No. 2) Bill is currently being debated in the House and will make legislative provision for the suspension of the travel tax. The Government is only prepared to commence this provision if the airlines demonstrate a willingness to respond positively to these initiatives. This position will continue to be reviewed in the context of traffic performance in the current year as well as stated plans by airlines for growth in future years.

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