New aviation tax 'anti-west as well as anti-airport', Dáil committee told

COMMITTEE:THE NEW airport tax introduced in last week's Budget was described as "anti-west as well as anti-airport "at a meeting of the Joint Oireachtas Committee on Transport yesterday.

At a hearing in Leinster House Mayo TD John O'Mahony also said airports in the west, including the airport at Knock with which he was most familiar, "were not getting a fair crack of whip" where Government aviation policy in general was concerned.

Roscommon-South Leitrim TD Frank Feighan proposed that the committee call on the Minister for Transport, Noel Dempsey, to remove an anomaly in the proposed tax, whereby those travelling to the UK from west of Ireland airports would pay more in tax than those travelling from Dublin. He said it was already the case that State airports received "huge supports" which gave them "an unfair advantage" over regional airports.

The committee hearing, chaired by Frank Fahey TD (FF), was attended by representatives from Ireland West airport at Knock, Galway airport and Sligo airport.

They included Liam Scollan,board director and group managing director, with chief executive Robert Grealish, of Ireland West airport, Michael Coyle chairman and Joe Walsh managing director of Galway airport along with Michael Coyle chief executive of Galway Chamber of Commerce, and Joe Corcoran general manager of Sligo airport.

Liam Scollan said the Budget proposal "amounts to a tax on the regions because Dublin airport passengers will be charged € 8 less to major UK destinations".

Under the Budget proposal those flying to a destination over 300km from an Irish airport must pay a €10 tax, while those flying less than that must pay €2 in airport tax.

It means, for example, that anyone flying from Dublin to Manchester or Liverpool will have to pay a €2 tax, while those flying from any west of Ireland airport to Manchester or Liverpool must pay €10.

Mr Scollan also said "the task of communicating and collecting the tax should fall to a body like the Commission for Aviation Regulation and the Revenue Commissioners who are best placed to deal with . . . levy collections."

He said "imposing such a major administrative burden on small regional airports could have a catastrophic impact" and forecast that the new tax would mean more will be lost in tourism-spend than gained in tax revenue at Knock as a result.

Robert Grealish forecast that the new tax could lead to a 5 per cent drop in passenger numbers there, "which would negate the purpose of the tax.

Mr Feighan's proposal that the Minister correct the airport tax anomaly was supported by Mr Fahey and adopted unanimously by members.