Michelle Mulherin (Mayo, Fine Gael) | Oireachtas source

I thank the Minister for taking on board the proposal that the dismantling of aircraft is more comprehensively covered within section 30. I also acknowledge the contributions of Deputies Naughten and Calleary and other colleagues who support Knock. Already Knock has some small business in this area. It wants to grow that and build more hangars. Knock has been growing in leaps and bounds and we should pay heed when it identifies areas of concern that put future growth at risk and areas where it needs some State support. We definitely get value for money when anything is put into Knock. The evidence is there in its growth in spite of the odds, including at times political odds.

Some of the amendments to this section have been disallowed. I support the spirit of Deputy Naughten's amendment although I understand that it cannot be considered. Deputy McGrath proposed that there be a report. I do not feel there is any great need for a report because that might just be procrastination. We need action.

The Minister said on Committee Stage that this section was first drafted in the context of the development at Shannon Airport joining up with Shannon Development and the new company being formed so we know that Shannon was to the fore in the Minister's mind. He then acknowledged that it applies to all airports. The reality is that there will be no great benefit to other airports if they do not have the same profile and rental income as Shannon. I know the Minister will clarify this point. I have tabled several parliamentary questions which satisfy me that Shannon has have rental income of approximately €6 million per annum with the potential to rise to between €10 million and €13 million. By virtue of that and the way this provision is structured the airport will be able to set off capital allowances in full against rental income on properties in the domain of Shannon Airport over a seven year period to its benefit. Knock Airport, because of its financial structure cannot get a loan to build hangars will not be able to avail of this provision so it is looking to outside investors. Knock tells us in its submission that it needs this provision to be more attractive to outside investors. That is our point, investors would be incentivised.

On Committee Stage I put forward several proposals one of which was a section 23. I can understand why the Minister would have reservations about that. There were other minor amendments which would be in keeping with the provision, which could be attended to, would be beneficial and fulfil Knock Airport's request. Parking the section 23 relief I asked that the Minister would consider this when he brings the Bill to the Seanad where he would have another opportunity to amend it. The Taoiseach is aware of this. I have written to him to suggest that the tax relief be available against other income and that the unused capital allowances would not be restricted to the life of the building but could be carried forward until used up. The capital allowances would not be deemed specified relief, which is used by high income individuals. These are not very far-reaching amendments. Shannon Airport has been accommodated but we do not want to be accused of favouritism. We should try to help Knock airport. Now is the opportune time.

The Minister has explained to us that this particular tax relief has to be approved by the European Commission. Now is the opportunity to amend it and forward it to the Commission. There is legitimate cause for concern because of the package put in place for Shannon and the potential adverse impact of this competition on Knock Airport following State intervention in another airport. I would like to see the amendments I have described made to this Finance Bill. They would assist the case. There is universal support for these amendments. Sinn Féin, Fianna Fáil, and Independent Deputies support such a change. If we do not take some action in this sphere we are compounding the problems facing Knock Airport and throwing away an opportunity. I urge the Minister to consider this when the Bill comes before the Seanad.

See this speech in context