Tommy Broughan (Dublin North East, Labour)
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Question 41: To ask the Minister for Transport if he will report on his recent meetings with European Union Transport Ministers; if plans were drawn up to establish a central air navigation system for Europe or a wider Functional Airspace Block; the way this new agency will function; when it will be operational; the further way it will interact with the Irish Aviation Authority and the Commission of Aviation Regulation; if he has satisfied himself with the new three-tier guidelines for aircraft flying through areas with volcanic ash; if regulatory authorities had been requesting, for at least three years, a review of ash levels through which airplanes can fly; the cost to Irish airlines and businesses of the recent disruption to air travel due to the Icelandic volcanic eruption; the suggestions he has made to the EU on a support package for airlines in crisis due to the volcanic eruption; if he has further satisfied himself with the level of protection afforded to air passengers under EU law during the aviation closure; and if he will make a statement on the matter. [18068/10]

Noel Dempsey (Meath West, Fianna Fail)
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On Monday, 19 April, EU transport ministers met via video conference. On the basis of a recommendation agreed unanimously by the national authorities of the 38 members of Eurocontrol, ministers agreed to new measures which would allow for the progressive and co-ordinated opening of European airspace with effect from Tuesday, 20 April. These measures involved the designation of zones based on ash concentration levels.

A further Council meeting was held yesterday in Brussels. Ministers agreed that the implementation of the second phase of the single European sky initiative should be accelerated including, in particular, the establishment of functional airspace blocks, also known as FABs, and the appointment of a network manager. The Ireland-UK FAB established in 2008, was the first in Europe. The appointment of a European network manager is expected to take place by the end of 2010, which will greatly improve co-ordination of European airspace.

On the question of the financial impact of the crisis, Commissioner Kallas recently gave his preliminary estimate of the financial impact across Europe, which was in the order of €2.5 billion. Aer Lingus and Ryanair have estimated their losses from the crisis to be €5 million and €6 million respectively per day.

During yesterday's discussions, Commissioner Kallas confirmed that member states could give financial aid to the industry. I have already publicly indicated that Ireland is not in a position to provide financial aid to the industry because of the state of the public finances.

The Council acknowledged that the current European rules on passenger rights must to be applied in full so as to guarantee rights of those stranded during the recent crisis, and that more work needed to be done to ensure entirely consistent application of the rules across all member states.

Tommy Broughan (Dublin North East, Labour)
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The safety of passengers and crews is paramount. However, as it is now proceeding, this is the last thing the Irish economy needed. Have the Department of Transport and the Department of Finance collated any figures in terms of the overall, ongoing economic damage to aviation, airports and tourism? We are aware that our two national airlines are losing €6 million or €7 million a day. The Transport Commissioner, Mr. Kallas, to whom the Minister referred, said in that context that this is an exceptional event similar to that which occurred on 11 September 2001 and therefore European governments should consider some support framework programmes for their airlines. Should the Government not urgently reconsider the entire situation and perhaps propose some support mechanism for the airlines if this continues?

When we last met we had a debate on the travel tax. Is it not time to finally axe that tax, which we know even from a cursory cost-benefit analysis is not beneficial? The yield is lower than the damage it does to the country.

Noel Dempsey (Meath West, Fianna Fail)
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When the task force met, the various State agencies were tasked with trying to assess the economic aspects of the closure of airports owing to volcanic ash and that work is still ongoing. In the reply I said that Aer Lingus and Ryanair have estimated their losses from the crisis to be €5 million and €6 million respectively per day. I recollect that the airport authority mentioned losses of approximately €8 million over the course of the previous closedown. On that aspect alone the losses total approximately €85 million or €90 million. From a tourism point of view, obviously, there is a loss of incoming passengers. However, I suppose that is somewhat counteracted by some people having to stay longer than they intended and some Irish people who had planned to travel abroad staying at home and probably making some other arrangements. That kind of sum needs to be done.

On giving compensation, the Deputy knows the current state of our finances. He has proposed to add a further €140 million to that. Would he like to make some proposals as to what expenditure we might cut to eliminate the air tax-----

Tommy Broughan (Dublin North East, Labour)
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There is no need to cut. I am not a cutter.

Noel Dempsey (Meath West, Fianna Fail)
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-----on passengers travelling abroad? Does he suggest that we take that out of education, social welfare or health?

Tommy Broughan (Dublin North East, Labour)
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That is not necessary.

Noel Dempsey (Meath West, Fianna Fail)
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Of course it is not.

Tommy Broughan (Dublin North East, Labour)
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There is plenty of scope.

Noel Dempsey (Meath West, Fianna Fail)
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It is not at all necessary; money grows on trees.

Tommy Broughan (Dublin North East, Labour)
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This is a simplistic, nonsensical and nihilistic analysis. There are resources we can find from segments of the population who should contribute more to help deal with the national crisis. On the scientific advice, obviously the IAA is taking advice from the Volcanic Ash Advisory Centre in London. What is the most recent advice the Minister has received? Is he having video conference calls with his European colleagues on a daily basis to monitor this? What is the worst case scenario the Government is prepared to meet? For example it is said that when this volcano erupts, its big sister, Katla - I will not try to pronounce the name of the erupting volcano itself again - is an angry sister and always erupts on time. If this turns into an event that lasts for several years, what is the Government's thinking in that regard?

Once again Irish citizens are stranded abroad and visitors who are very valuable to our country are stranded here. Has the Minister made any special arrangement to ensure that European legislation is enforced for those passengers? In the past week or so we all met people who managed to get back during the previous ash outbreak and found it very difficult. Will the Minister insist that their rights will be respected? Does he welcome that the chief executive of Ryanair, Mr. Michael O'Leary, finally decided to follow European law in this regard?

Noel Dempsey (Meath West, Fianna Fail)
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I have taken a very strong line from the outset that the legislation must be respected and that nobody can break the law. It would be a criminal offence to break that law so I am glad everyone has agreed they will obey it, that is what I expect from our citizens.

On the broader question of fairness in the context of an extraordinary event like this one, that is a debate that will no doubt take place in future. It might not be useful to have it right now in case people feel they could renege on current commitments.

No one can say how long these disruptions will continue, it depends on the volcano and the weather. If the second volcano erupts, the rules agreed by EU Ministers that are being implemented now would be put in place across all European airspace. If it was clear the disruption would last for a long time, contingency plans would have to be put in place. That does not arise at the moment.