Tommy Broughan (Dublin North East, Labour)
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Question 344: To ask the Minister for Transport, Tourism and Sport the position regarding the measures to abolish the air travel tax under the recent jobs initiative; if an agreement has been reached with the airlines in terms of a targeted increase in passenger volumes as a [i]quid pro quo[/i] for the abolition of the air travel tax; the terms of that agreement; when it will come into force; and if he will make a statement on the matter. [21742/11]

Leo Varadkar (Dublin West, Fine Gael)
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In the recent Jobs Initiative, I announced a three-pronged strategy to encourage inbound tourism. The first element is the proposed suspension of the air travel tax, the second is a new growth incentive scheme which has been introduced by the Dublin Airport Authority and the third is more targeted co-operative marketing of new routes from key source tourism markets by Tourism Ireland, Dublin Airport Authority and the airlines to encourage more tourists to fly into Ireland.

My officials and I have engaged with the Dublin Airport Authority and with the four main Irish airlines about these initiatives and I also wrote to all of the other airlines operating services to and from the State airports. Some proposals for additional capacity and new routes put forward are being examined by my Department and by external consultants to assess their potential impact. I will await the outcome of that assessment and responses from other airlines before making a recommendation to my Cabinet colleagues on whether or not to suspend the tax. The recent enactment of the Finance (No.2) Act, 2011 has provided that basis or the suspension of the air travel tax if we decide to do so.