Ciarán Lynch (Cork South Central, Labour)
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Question 56: To ask the Minister for Transport if he will review the operation of the range of extra charges and levies that are currently imposed on airline passengers in view of the need to maintain passenger volumes in the airline sector; if he will work with the Commission on Aviation Regulation and the National Consumer Agency to review the increasing burden of excessive extra charges on airline passengers including the new €30 levy on passengers carrying a separate duty free bag that an Irish carrier has recently introduced and, if necessary, bring forward legislation specifically to protect air travellers; and if he will make a statement on the matter. [5816/09]

Noel Dempsey (Meath West, Fianna Fail)
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As the Deputy will be aware, the air services market in the European Community was fully liberalised in 1992. The operation of the market is governed by common rules which were recently updated and are set out in a European Regulation No. 1008/2008. This regulation entered into force in November last year and has direct application in all member states. Under the common rules set out in the EU regulation, airlines can freely set fares for air services offered within the Community and this has been the case since 1992 when the market was first opened up.

The EU regulation introduces new provisions requiring greater pricing transparency. When publishing or advertising air fares, airlines must now include all applicable conditions and all applicable taxes and charges which are unavoidable and foreseeable at the time of publication. These pricing transparency provisions were introduced because the fare structure in the industry in recent years has changed significantly with many airlines now having differentiated pricing structures consisting of a basic fare with a number of optional pricing elements. The new rules require greater transparency in pricing information but airlines still have full pricing freedom. This will ensure that consumers have fuller information available to them in making their travel choices.

Side by side with the opening up of the market, a number of other consumer protection measures have been introduced at European level in recent years. These include compensation in the event of denied boarding and the rights of passengers with reduced mobility when travelling by air. The opening up of the market for air services has completely transformed air travel in Europe and has brought enormous benefits to the European economy and particularly to the Irish economy.

As an island nation Ireland is particularly reliant on air services for the maintenance and creation of business and tourism links with Europe and the rest of the world. The benefits of liberalisation are clear to see both in the context of the European market and the EU-US market which was liberalised more recently. The number of routes available into and out of Ireland has increased dramatically in the period since the market was opened up. The increased choice of destinations available to consumers and the significant decrease in fares in the years since the market was opened up clearly demonstrates the benefits that competition brings to consumers and to the wider economy.

Tommy Broughan (Dublin North East, Labour)
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Is the Minister and the Government reconsidering the €10 departure tax? We have heard in recent days that this is the straw breaking the camel's back for operators. Michael O'Leary of Ryanair says this tax is the primary reason 200 jobs at Ryanair in Dublin Airport have been lost and we hear that Aer Lingus will have to find €30 million in 2009 to fund the losses resulting from this departure tax. Given that such a small amount of money will be collected through this tax — well under €100 million this year — is this not the case of another own goal by the Minister as is the case with the Minister for Finance, Deputy Brian Lenihan, who scored a number of sensational own goals in recent months? Is this not another own goal and a devastating attack on employment at the worst possible time?

With regard to the question, can we have legislation to introduce simplified and less complicated ticketing arrangements? I note the Ryanair website states that commuters are charged a whole range of taxes such as the payment of a handling fee, the airport check-in fee, the priority boarding fee, the infant fee, the baggage fees, fees for the first bag, second bag and third bag, the excess bag, the infant equipment, the sports equipment, the musical instrument and, lately, the €30 fee to ensure that passengers will buy duty free goods only on board the Ryanair flight. The Minister has been doing nothing about this for the past couple of years. I ask him to deal first and foremost with the departure tax.

Noel Dempsey (Meath West, Fianna Fail)
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The Deputy is of course correct; it is an open market and people can do this if they want to. The list and litany of the various charges read out by the Deputy would lead any reasonable person to conclude that a €10 departure tax was not the straw that broke any camel's back.

Tommy Broughan (Dublin North East, Labour)
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That is exactly what it is.

Noel Dempsey (Meath West, Fianna Fail)
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It is very instructive that Deputy Broughan, who has frequently stood up in the House and attacked and ranted and raved about Ryanair and Michael O'Leary and about the manner in which he does his business, is now a firm believer of the gospel according to Michael. There is no sane person in this country——

Tommy Broughan (Dublin North East, Labour)
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We are losing jobs.

Noel Dempsey (Meath West, Fianna Fail)
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——who believes for one minute that Ryanair decided to reduce the number of flights out of Shannon or out of Dublin because of the €10 departure tax. Ryanair reduced those flights because it estimates the number of passengers flying out of Shannon and Dublin in 2009 will be less than it was in 2008. Ryanair has moved its operations to places where it thinks it will get these passengers.

Tommy Broughan (Dublin North East, Labour)
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Where there is no travel tax and no departure tax.

Noel Dempsey (Meath West, Fianna Fail)
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The €10 departure tax is the usual tactic from that same source.

Tommy Broughan (Dublin North East, Labour)
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He might be right about some things.

Brendan Howlin (Wexford, Labour)
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Allow the Minister to continue.

Noel Dempsey (Meath West, Fianna Fail)
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An old football coach of mine used to say that attack was the best form of defence. When one is doing something that is not popular, one should find someone else to attack. The Deputy has fallen for it.

Tommy Broughan (Dublin North East, Labour)
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That is what the Government does.

Fergus O'Dowd (Louth, Fine Gael)
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The Minister for Foreign Affairs, Deputy Martin, is on his way to Cuba. He will pay an entry and departure tax of €25 to visit poor old Fidel's country. The departure tax is a penalty that should not be in place.

Ryanair and Aer Lingus both have weight limits of so many kilograms. Once one exceeds a limit of 8 kg, 10 kg or whatever it may be, one pays a penalty. Is anyone checking the readings from the weighing machines? Recently, I acquired clear evidence of a bag's weight differing by 2 kg or 3 kg when weighed by two different companies. Who is policing the charges? Does the Department have a nominated person to check whether the weighing scales are correct? In many cases, they are not.

Noel Dempsey (Meath West, Fianna Fail)
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It is not a matter for my Department. Rather, it may be a matter for the weights and measures group in the Department of Enterprise, Trade and Employment.

Fergus O'Dowd (Louth, Fine Gael)
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It is a real issue.

Noel Dempsey (Meath West, Fianna Fail)
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I am aware of that. If the Deputy has evidence, he should make it available, as it is important that such situations not occur. In some airlines, a commission acts as an incentive to make the charge.

The projected income accruing from the tax will be €150 million.

Tommy Broughan (Dublin North East, Labour)
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That is for 2010. I remember the unfortunate budget.

Noel Dempsey (Meath West, Fianna Fail)
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If the Deputy has any bright ideas on how else to get that much money, he should let me know.

Tommy Broughan (Dublin North East, Labour)
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The figure for this year will be €95 million.

Noel Dempsey (Meath West, Fianna Fail)
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Some €150 million in a full year.