Written answers

Tuesday, 29 June 2010

Department of Arts, Sport and Tourism

Tax Code

10:00 am

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Question 410: To ask the Minister for Tourism, Culture and Sport the companies and agencies with whom she has had discussions regarding the abolition of the air travel tax since her recent appointment; the general views expressed to her indicating if they supported the abolition of same; her views on this matter; and if she will make a statement on the matter. [28449/10]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Questions on budgetary or taxation policy are matters for my colleague, Mr Brian Lenihan, TD, Minister for Finance, in the first instance. The Government must consider any measure with tax or spending implications within the wider context of fiscal sustainability and economic renewal and the Air Travel Tax is regarded by the Minister for Finance as an important revenue raising measure.

Of course, I acknowledge the concern among many in the tourism industry that the imposition of the Air Travel Tax could potentially affect the competitiveness and viability of routes to and from Ireland, with possible implications for levels of access. Since my appointment as Minister for Tourism, Culture and Sport, such concerns have been raised with me both informally and formally, during meetings with tourism representative bodies and with airlines such as Aer Lingus, Aer Arann and Ryanair.

However, the range of factors which affect the numbers of passengers (including inbound tourists) and the viability of access routes are varied and cannot be attributed to a single tax. From the tourists' point of view, the additional €10 or €2 must be seen in the context of a much larger purchasing decision involving travel, accommodation and other holiday expenditure.

As Minister with responsibility for tourism, I will be conveying the views of the airlines and other stakeholders to the government in the context of the deliberations on Budget 2011, so that the issue can be considered from all angles.

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