Dáil debates

Thursday, 31 March 2011

3:00 pm

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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Question 1: To ask the Minister for Tourism, Culture and Sport the position regarding the discussions he has had with companies (details supplied) regarding increasing the number of routes into the country in exchange for the abolition of the €3 airport tax; and if he will make a statement on the matter. [6333/11]

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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I congratulate Deputy Michael Kitt on being appointed Leas-Cheann Comhairle today. I wish him the best of luck in the role and I am sure he will be very fair like the Ceann Comhairle, Deputy Barrett.

Direct, convenient and competitive international access by air and by sea is vital for the development of tourism to Ireland, an island destination. It is in that context that the agreed programme for Government undertook to abolish the €3 air travel tax subject to a deal being agreed with carriers to reopen closed routes and bring more tourists into Ireland.

Clearly the air travel tax is among the factors which can potentially affect the competitiveness and viability of air routes to and from Ireland. However, the Government must take a balanced approach to its overall response within the wider context of fiscal sustainability and economic renewal. This is why, if the airlines do not commit unequivocally to increase the numbers of tourists visiting Ireland in return, and hence overall Exchequer receipts, there will be no reduction in the tax.

With specific regard to discussions with the airlines, my colleague, the Minister for Transport, Deputy Leo Varadkar, is currently consulting officials of my Department and his own regarding the approach to be taken in such discussions. The Deputy will be aware that the Minister, Deputy Varadkar, will shortly assume formal responsibility for tourism and sport matters, following the relevant transfer of functions.

More generally, working to restore and enhance international access is a key priority for tourism development in 2011. Tourism Ireland is engaging actively in co-operative marketing campaigns with air and sea carriers to stimulate demand for travel to Ireland from key source markets and to demonstrate ease of access. This year, Tourism Ireland has increased the level of resources available for co-operative marketing with air and sea carriers in major markets — including Ryanair and Aer Lingus — and for case-making with airports and relevant authorities for the restoration of lost air access or the introduction of new routes. Furthermore, I am advised that where it believes an opportunity exists in a market, Tourism Ireland is happy to commit co-operative marketing funds in advance to help secure a new, or reinstated, service.

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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I thank the Minister for his reply. I congratulate the Leas-Cheann Comhairle on his appointment today and wish him well in the role. I also congratulate the Minister, Deputy Deenihan, on his appointment and wish him well in his role. I know from his background that he is very well qualified for it and I have no doubt he will bring that experience to bear in his Department in this period of Government.

The programme for Government commits to reducing the airport tax only in circumstances where the airlines agree to bring in new routes and enhance the number of tourists to the country. I welcome the fact that the Minister will hold them to that. Has he had contact with Ryanair on the matter of the €2 hike in taxes it imposed yesterday, which runs contrary to the argument it put forward in advance of the last budget seeking to reduce the airport tax in place? There is not much point in it being reduced if Ryanair will simply use it as an opportunity to proceed to introduce its own charges on fares. Airlines such as Ryanair and Aer Lingus are key to bringing people into the country. If they invest in putting on routes, it gives people an opportunity to visit this country. They can play a critical role in the development of tourism over the next while. It is critical that the Government holds them to account in ensuring that they do that in return for any reduction in the tax.

Has the Minister met representatives of Aer Lingus and Ryanair on this matter? Has he spoken to representatives of Ryanair to inform them of his displeasure and the view of Members of this House that their action is simply not tolerable and that it would have repercussions in terms of future policy?

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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I welcome Deputy McConalogue to his position of responsibility as Opposition spokesperson on transport, tourism and sport. I remind him that the line Minister will be Deputy Varadkar; it is simply that the responsibilities he will have not yet been transferred.

The Minister, Deputy Varadkar, in a interview on a news programme today expressed his disappointment that this charge was imposed. He was preparing with his officials to approach the airlines on this matter. I do not believe contact had been made as regards the €3 tax but the Minister, Deputy Varadkar, described the imposition of this tax as a major disappointment. Ryanair will use the argument that it is compensation for losses resulting from the impact of the ash cloud and other reasons but, nevertheless, it is disappointing at a time when the Government was being asked to reduce the travel tax that this hike in taxes has now been imposed. I am sure it will act as a disincentive to people travelling to this country.

Prior to the election I drew up a tourism plan, having consulted widely on it, including with Ryanair. It made a commitment at that time that, if the travel tax was scrapped, over a period it could bring an additional 5 million to 6 million tourists into the country and perhaps create 5,000 to 6,000 jobs. I accepted what it said in good faith at that time but today's news is disappointing and I understand the Minister, Deputy Varadkar, expressed that disappointment earlier in an interview on national radio.