Michael Noonan (Limerick City, Fine Gael)

I do not believe there is any contradiction between the two positions because the initiative is to get extra tourists into the country. If one restores routes that were cancelled, one is trying to get extra people into the country and the measure of that is how many extra people come and the way to do that is to encourage extra passengers. It is really a different way of saying the same thing.

Section 2 amends section 55 of the Finance (No. 2) Act 2008 and provides for the appointment by ministerial order of a day on or after which passenger departures would not be subject to the air travel tax. This measure is subject to an agreement being reached with the airlines to bring in additional passenger numbers. While the air travel tax in itself is primarily a matter for the Minister for Finance, the Government's motivation towards making an adjustment is to ensure there are no impediments to Ireland maximising the number of visitors to these shores. Consequently, the Minister with responsibility for tourism and transport is taking a lead role in the negotiations in this area.

The Minister for Transport, Tourism and Sport and his officials have held discussions with the Dublin Airport Authority and the main Irish airline is about to propose suspension of the air travel tax. The proposal is part of a three-pronged strategy to encourage inbound tourism that the Minister announced as part of the jobs initiative. It also includes a new growth incentive scheme that has been introduced by Dublin Airport Authority which involves more targeted co-operative marketing of new routes from key source tourism markets by Tourism Ireland, Dublin Airport Authority and the airlines to encourage more tourists to fly into Ireland. I understand the Minister has also written to the other airlines operating services to and from the State airports about these initiatives. The Minister for Transport, Tourism and Sport has made it clear in all contacts with the airlines that the Government is only prepared to commence the latest provision to suspend the air travel tax if the airline proposals will deliver real benefits.

The Minister, Deputy Varadkar, has advised that certain proposals for additional capacity and new routes have been put forward and his Department is currently examining these with the aid of external consultants to assess their potential for increasing inbound tourism and the impact the proposals may have on the airports and their financial position. I understand the assessment is expected to be completed by the end of the month.

The Government cannot create jobs but it can create the conditions and environment which allow for more jobs to be created. This is the basis for any moves the Government may make in this area. As I stated previously, a review of the measure will be conducted before the end of 2012 and if it is considered unsuccessful the air travel tax will be reapplied. That is if it is reduced by order in the first instance.

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