Clare TDs support air travel tax retention

TRANSPORT Minister Leo Varadkar has announced that the €3 air travel tax won’t be abolished until next year at least and he has been backed by his Clare colleagues in Government.
Interestingly, Clare TD Timmy Dooley also backed that course of action although Ryanair have criticised it.
In a statement, the Department of Transport said solid commitments from airlines on inbound routes and capacity could not be secured. It was also stated that a “significant proportion” of revenue taken from the €3 travel tax would be used to support inbound tourism.
Labour party TD Michael McNamara said airlines need to give some commitments before they get the tax reduced. “Following calls from airlines, the Government agreed to abolish the travel tax as the airlines increased their routes but as we can see with Shannon Airport, this is not happening. Airlines need to realise that they have their part to play.
“The Government announced yesterday that they have made a €8.5m co-operative marketing fund available. The fund is to be used by airlines, airports, tour operators and ferry companies to attract inbound tourism to Ireland. I call on airlines in Shannon Airport, and in particular Aer Lingus, to utilise this fund to market their recently introduced routes before abandoning them altogether.
“The Government has listened to the airlines and their concerns over the travel tax. It is now time for the airlines to work with the Government and to retain cancelled routes and restore lost capacity. Then, and only then, can the issue of the travel tax abolishment be seriously considered.”
Fine Gael’s Joe Carey also backed the move. “It’s an issue that the new minister has taken on board, there have been intensive discussions with all the airlines and he has put it up to them. There needs to be a quid pro quo, that if the charge was abolished that new services would be introduced.”
Deputy Timmy Dooley said the Government were finding it hard to deliver on what they had promised. “We pointed out in government that despite incentives, the airlines were reticent to introduce new services. The new Government are now finding it difficult and despite what they said prior to the election, I think they are right not to give money to the airlines.”
In a statement on Tuesday, Ryanair denied it had given commitments to deliver passengers to Irish airports. Its spokesman, Stephen McNamara, also claimed the policies of the last Government are being continued. “The Department of Transport’s announcement of an €8.5m “marketing fund” is more of the same failed policy of the last Government, who wasted over €100m per annum in tourism marketing monies each year, while air traffic declined by over 30%. No marketing spend can hide the fact that the main Irish airports are high cost and traffic will continue to decline as a result of the DAA’s 40% increase in airport charges and the Government’s travel tax.
The truth behind the department’s statement is that despite all the promises of “change and reform”, the Department of Transport still won’t tackle the high cost DAA monopoly, which it supports and protects. At a time when other airports in Europe are lowering costs and growing, the DAA monopoly is increasing costs and its traffic is declining. Shannon’s traffic for example is now 50% less than it was just two years ago.”
Michael Vaughan of the local branch of the Irish Hotels Federation said that while he regretted the tax wasn’t going, he was glad that money raised would be spent on marketing and said he would be pleased if a significant amount is ringfenced for Shannon.