Richard Bruton (Dublin North Central, Fine Gael)
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Question 77: To ask the Minister for Finance if he has assessed EU proposals to introduce an excise duty on aircraft fuel as part of the strategy to address this source of emissions affecting global warming; the Government's approach to this issue; and if he will make a statement on the matter. [17660/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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When the issue of introducing tax on aviation fuel arose in the context of discussions on the EU energy tax directive, 2003/96/EC, we expressed concerns, together with other member states, based on our peripheral status and dispersal of populations, which adds to transport costs, and the need to maintain competitiveness in the EU vis-À-vis third countries in regard to tourism. The directive did not include any taxes on aviation fuel because there was no agreement to do so. A proposal to introduce a tax on aviation fuel or a ticket tax to fund development aid has emerged at EU level in recent months. I have expressed my opposition to such a proposal as the concerns raised in the context of discussions on the EU energy tax directive still hold.

The Government continues to address its climate change commitments through the national climate change strategy. Taxation is only one way of addressing the issues involved. I have stated before that I am open-minded towards initiatives in the tax area which can impact positively on the environment. In reviewing any such initiatives, however, I must be mindful of competitiveness issues and the impact of any particular measure across the overall community.