Pat Breen (Clare, Fine Gael)
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Question 263: To ask the Minister for Finance, further to Parliamentary Question No. 119 of 11 March 2009, if, in view of the recent losses at Aer Lingus, he will review the imposition of the €10 air travel tax; and if he will make a statement on the matter. [30596/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware, I announced in Budget 2009 that an air travel tax would come into force in respect of passengers departing from Irish airports on and from 30 March 2009. A general rate of €10 per passenger would apply, with a lower rate of €2 for shorter journeys. The Finance (No.2) Act 2008 confirms the introduction of an air travel tax from 30 March 2009. However, I took account of concerns raised by the regional airports particularly those on the western seaboard. The lower rate of €2 will apply to departures from any Irish airport where the destination is 300kms or less from Dublin airport. This means that all Irish departures to locations such as Manchester, Liverpool and Glasgow will be subject to the €2 rate. Ireland is not unique in regard to applying a tax on air travel. Other countries within the EU apply similar taxes such as the UK and France, as do Australia and New Zealand. The proposed rates for the Irish air travel tax are not unreasonable both for shorter and longer journeys, when compared to rates in other countries.

It should be recognised that tourists will only be subject to the tax on their return journey. The additional €10 or €2 in the context of a much larger purchasing decision involving travel, hotel expenditures etc. shouldn't have much of an effect on tourist numbers. I appreciate the airline industry continues to go through a difficult period. However, this difficult trading period arises primarily from weak world economic activity.

It should be noted that at present the decline in air travel is an international phenomenon and as a result aviation services are contracting on a global basis. Indeed the decline in the number of people travelling is also evident in those countries where there is no air travel tax in place. We currently face significant financial challenges and the air travel tax is an important revenue raising measure. I tried to be as fair as possible in looking at areas for additional tax revenues. It is also worth noting that fuel used by commercial airlines is completely exempt from tax, so it's a sector that already has considerable preferential treatment. I have no plans to review the air travel tax.

Brian Hayes (Dublin South West, Fine Gael)
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Question 264: To ask the Minister for Finance if his attention has been drawn to the decision of bookmakers (details supplied) to announce their intention to relocate their Internet business from the United Kingdom to Gibraltar with a loss to tax revenues and employment within the UK; his plans, in view of the portability of Internet betting operations, to tax Internet betting which could encourage existing Internet bookmakers based here to move their businesses to low tax jurisdictions; and if he will make a statement on the matter. [30646/09]

Chris Andrews (Dublin South East, Fianna Fail)
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Question 281: To ask the Minister for Finance the position regarding a study into taxing on-line and phone betting; his views on the introduction of a tax for on-line betting; and if he will make a statement on the matter. [31036/09]

Pat Rabbitte (Dublin South West, Labour)
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Question 293: To ask the Minister for Finance if his attention has been drawn to the fact that all bookmakers' betting duty payments are up to date in 2009; if not, if the provisions of section 29 (6) of the 2009 Finance Act are being fully enforced; if not, his views that the taxpayer subsidise slow-to-pay bookmakers; if further attention has been drawn to the fact that the Internet operations of two companies (details supplied) in August 2009 relocated offshore to Gibraltar with hundreds of smart economy job losses in the UK as a result; and if he will make a statement on the matter. [31509/09]

Pat Rabbitte (Dublin South West, Labour)
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Question 294: To ask the Minister for Finance if his attention has been drawn to the fact that of the ten largest bookmakers marketing here, only two companies employ Internet staff here while the other eight companies are located in low tax regimes; and if he will make a statement on the matter. [31510/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to answer Questions Nos. 264, 281, 293 and 294 together.

I am aware that certain bookmakers are considering relocating their internet businesses from the UK, including to Gibraltar. It is the prerogative of a company to locate its businesses where it sees fit. In that regard, it should be noted that Ireland's tax regime, for example corporation tax, compares favourably to other countries. In addition, Ireland has a highly skilled and flexible workforce.

As I stated during the Finance Bill process, it has been my intention to widen if possible the tax base on which betting duty would be applied. Bets placed either online or over the phone are generally with out-of-State companies so applying betting duty is therefore problematic. My officials, in conjunction with the Office of the Attorney General, the Office of the Revenue Commissioners and the Department of Justice, Equality and Law Reform, are looking at the scope to overcome legal and operational difficulties in this area and will continue to do so, on an ongoing basis.

In addition, my Department is working closely with the Department of Justice, Equality and Law Reform which has initiated a review in order to provide the Government with options for a new and comprehensive legal and organisational framework governing gambling architecture in the State. The review, amongst other things, will consider: - the recommendations contained in the Report Regulating Gaming in Ireland, - the existing law regulating gaming lotteries and other forms of gambling in the jurisdiction, - international developments, in particular the experience of the UK's Gambling Commission, - developments in relation to remote gambling (e.g. via the internet and mobile phones).

As the Deputies may be aware, due to pressure on the betting sector, I decided to defer the introduction of the increase in the betting duty provided for in Finance (No. 2) Act 2008 pending a review. Accordingly, the Finance Act 2009 contains a provision for continuing the existing betting duty rate of 1% unless and until an order is made bringing the 2% rate into effect, or alternative betting taxation arrangements are enacted. This decision is based on the premise that the betting sector will engage in constructive discussions about putting in place a fair and workable tax base for the sector. Such discussions will, inter alia, touch on issues such as online/phone betting, which is largely untaxed, and look at proposals that could potentially bring this area into the tax net, if possible, while also protecting Irish employment in the sector.

In relation to the matter of the late payment of betting duty by bookmakers, betting duty is payable quarterly, by the 15th day of the month following the end of the quarter. If betting duty is not paid when due, interest is payable on the amount outstanding, in accordance with section 74 of the Finance Act 2002 as amended by section 29(6) of the Finance Act 2009. The current rate of interest, effective from 1 July 2009, is 0.0274 per cent per day. It is a key goal of the Revenue Commissioners to ensure that everybody complies with their tax responsibilities, and that any taxes due are paid in a timely way. If a betting duty payment is not received by the due date, Revenue pursues the matter with the bookmaker concerned to ensure that payment is made as soon as possible.