FIANNA Fail on return to government is committed to granting special tax designation to the State's regional airports, its spokesman on transport, Mr Seamus Brennan, said yesterday.
Speaking at the announcement of his party's new policy on regional airports, Mr Brennan said the designation would have the same status as that granted to Dublin's International Financial Services Centre. The policy includes a proposal to exempt such facilities from rates and to shift air traffic control costs back on the State.
Knock Airport, Co Mayo, would be the first to receive special tax designation within a short period of returning to office, he said, while a review of its success would take place a year later. This would pave the way for extending the designation to regional airports in Galway, Kerry, Sligo, Donegal and Waterford.
Designation, he predicted, would create an enterprise zone around the airports leading to increased services and demand for extra flights, particularly direct flights to Britain and Europe. While he accepted that airports could not dictate to airlines, such a "tax zone" arrangement would help create the necessary demand for extended services and facilitate regional industry.
Other elements of the policy include a commitment to put regional airports on a statutory basis and to direct more extensive marketing funds towards their promotion. The party is also committed to seeking a broader application of the EU Essential Air Services Programme, which would allow, for example, support of direct flights to and from Britain.
"We will strongly resist EU plans to abolish duty free shopping after June 1999. This generates more than £100 million for Irish companies and regional airports benefit from it. We in this country invented it. We can make a special case for extending it for several years at least.
Ireland's regional airports were different to each other in many respects but had common problems and requirements, he said, such as the need to develop their services and deal with difficulties arising from the dominance of Aer Rianta in the overall market for landing space in Ireland.
Mr Brennan acknowledged that a number of airstrips around the country, particularly on islands, were in need of investment. The party would also back a process of extending runways where necessary.
