Seanad debates

Tuesday, 4 November 2008

6:00 pm

Photo of Jerry ButtimerJerry Buttimer (Fine Gael)

Cuirim fáilte roimh an Aire Stáit. Ar an gcéad dul síos, ba mhaith liom buíochas a ghabháil leat, a Chathaoirligh. I thank you, a Chathaoirligh, for allowing me to raise this matter. The budget has a habit of unearthing different issues, one of which is the imbalance in the taxation of air passengers in regions outside Dublin. I am talking predominantly about Cork. The budget undermines the aviation industry at a time when, as I hope the Minister of State realises, that industry and our airports are facing a difficult climate. Airports have been graded separately in respect of the forthcoming travel tax. This applies to Cork, Shannon, Knock, Dublin and other airports. The yield from this tax does not justify the imposition of a levy on departing passengers, especially from Cork Airport. I know the Minister of State does not like to use the terms "U-turn" or "flip flop", although I heard him saying so on the radio last week. I hope, however, the Government will acknowledge that Aer Lingus is in trouble with its unions and is trying to make money.

In addition, Ryanair posted disappointing figures today. Equally, the policy of separating Dublin and Cork airports has not happened, while the Cork Airport Authority has no chairperson and there are three vacancies on the board. This unfair €10 tax is a harsh imposition on all departing air passengers, especially the people of Cork. People in Cork, Shannon and Knock are being told that they are different from people in Dublin, but is that right? This ill thought-out tax is being imposed on the regions. The Minister of State strongly supports his region so I find it hard to understand why we are telling people that Ireland ends at the Red Cow roundabout. As a result of this tax, we are back to the Pale that we fought for so long to get rid of.

Although it is not within the remit of the Minister of State's Department, I have serious concerns about the Government's general aviation policy and the way in which Cork Airport and the people of Cork are being victimised. Why is there no such taxation on private airports? Why is the Government jet not taxed, as well as the passengers using it? If they are taxed, the Minister of State should say so here. Are they taxed when they leave the country by air?

This proposed levy adds to the woes of our airports at a time of economic recession. We are penalising airports and passengers, which is a further harsh blow for our hard-pressed aviation industry. I travel a lot by plane to Dublin, but one could have driven a bus through Cork Airport last week. At times, one could land a jumbo jet on the concourse there. Rather than trying to dumb down our airports, we should try to attract people here by marketing our airports better. Why was this travel tax deemed to be necessary? Why was Dublin given preferential treatment? What can we deduce from this budgetary levy regarding our attitude to regional development?

The Minister of State should announce a U-turn or a flip flop on this measure tonight. On behalf of the people of Cork and other regions, I will accept whatever language he wishes to use. It is a matter of principle to look after our own areas. As the Minister of State knows, life does not begin and end at the Red Cow.

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