Olivia Mitchell (Dublin South, Fine Gael)
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Question 1: To ask the Minister for Arts, Sport and Tourism his views on the inclusion of aviation emissions in the EU carbon credit trading system and its implications for Irish tourism; and if he will make a statement on the matter. [25784/07]

Séamus Brennan (Dublin South, Fianna Fail)
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The emissions trading scheme and the question of the inclusion of aviation is primarily a matter for my colleagues, the Ministers for Environment, Heritage and Local Government and Transport. Accordingly, detailed questions on the issue would be more appropriately addressed to them.

On the particular issue raised by the Deputy, I understand that final agreement on the proposal for a directive to include aviation activities in the scheme for greenhouse gas emission allowance trading within the European Community is subject to the approval of the European Parliament and the European Council, which has yet to be secured. Without clarity on the final details of the proposed operation and implementation arrangements, it is not possible to assess accurately the tourism impacts on Ireland. The Government supports, in principle, the proposal to include aviation in the emissions trading system. From a tourism viewpoint, I understand that the proposal is regarded as the least worst option, so to speak, in that it is preferable to application of energy taxes, en route charges or other measures to disincentivise customers from travelling by air.

I understand that the impact assessment carried out by the European Commission on its original proposal suggests that, "the maximum impact for regions whose tourism income depends fully on inbound air travel would be a decrease in tourist arrivals of 1% to 5% compared to a business as usual scenario".

Tourism, by definition, is dependent on transport and Ireland, as an island nation, depends overwhelmingly on air access. Considerably more than 80% of our visitors come by air and 80% of our tourism revenue comes from overseas tourists. Developing greater and more competitive air access has been and remains a key tourism policy priority for Ireland. Ireland's best prospects for medium and long-term tourism growth will be critically dependent on air access.

General policies which seek to restrict or significantly inhibit air travel can impact disproportionately on island member states such as Ireland and discriminate against the peripheral regions. It could be argued they are not in accordance with the principles of sustainable development and, therefore, we should be vigilant in arguing our position on this front.

Olivia Mitchell (Dublin South, Fine Gael)
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This is my first official opportunity to congratulate the Minister on his appointment and to wish him well.

I accept the Minister's point that this is a cross-cutting issue but it has specific relevance for tourism. Does the Minister agree that the introduction of any tax on aviation fuel, including carbon trading taxes, has serious implications for Ireland? There are no available alternatives so that a tax on aviation fuel can only reduce air travel into Ireland. Does the Minister agree that such an objective is not consistent with other national objectives and that we need a debate on the broader topic of taxes? The Minister remarked that it is the least harmful of taxes. If a direct carbon tax, which I understand is also being considered, is raised at EU level, I ask the Minister that we at least have a national debate on what we want to achieve. Carbon taxes on aviation can only reduce travel into Ireland. As well as affecting tourism, it will affect trade, compound our disadvantage as an island nation, increase the isolating effect of living on an island and erode many of the benefits we have derived in recent years from increased air travel into and out of Ireland.

Will the Minister talk to his colleagues with responsibility for transport and energy? As Irish tourism depends largely on the North American market and because the European land mass is very small, this measure will militate particularly against Ireland and could work to the advantage of countries such as Norway and Switzerland which are not in the EU and will not be subject to the tax. In the context of the open skies policy, it is critical that we are alert to the major competitive issues for Ireland. I ask the Minister to keep those things in mind.

Séamus Brennan (Dublin South, Fianna Fail)
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I offer my best wishes to Deputy Mitchell on her appointment to the Fine Gael front bench as spokesperson on the important area of arts, sport and tourism. It is significant that south Dublin seems to have attracted similar portfolios. I am sure it is to the benefit of arts, sport and tourism.

Olivia Mitchell (Dublin South, Fine Gael)
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I thank the Minister.

Séamus Brennan (Dublin South, Fianna Fail)
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I cannot say too much on these matters in the presence of the Ceann Comhairle.

Technology will bring significant changes in this area. There is a dilemma in our arguing at European level to reduce aviation emissions because by doing so we create a disincentive to travel by air. However, one can square the circle somewhat. Experts say that modern technology permits larger aircraft built with materials which cause smaller emissions and are technologically friendlier. One need not, therefore, greatly reduce the number of people travelling because they will simply be transported more efficiently. By including this in the emission trading scheme, we keep pressure on the aviation industry to continue to invest in such technology and to ensure it comes to the fore.

I acknowledge that a certain squaring of the circle is needed. On the one hand we must reduce emissions and on the other we must grow tourism. Tourism has been growing rapidly and we can continue to develop it while playing our part in reducing carbon emissions.