Simon Coveney (Cork South Central, Fine Gael)
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Question 108: To ask the Minister for Transport his views on the EU initiative of introducing an aviation tax on all EU flights to fund development in third world countries; and if he will make a statement on the matter. [21192/05]

Martin Cullen (Waterford, Fianna Fail)
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Discussions have been taking place at recent ECOFIN councils about methods to increase the European Community's overseas development aid contribution. A number of member states have suggested that additional funds could be derived from a tax or levy on airline tickets or aviation fuel. The Minister for Finance has informed me that there was no overall consensus on an aviation tax of any sort and opinions differed on the wisdom of such an approach. The European Commission has been asked to examine the matter further.

The air transport industry is particularly important for Ireland, given our island location on the periphery of Europe and our reliance on the air transport industry to maintain our strong economic links to the United States. It is not clear to me why, in view of the generally weak financial position of airlines, the aviation sector is being singled out to be the vehicle for collecting funds for development aid. Any proposal to introduce an extra charge on air travel journeys would have to be assessed carefully with these important factors in mind and having regard to the global nature of the aviation industry.