Mayo Fianna Fáil TD Beverley Flynn has called on the Minister for Finance, Brian Lenihan TD, to exempt Ireland West Airport Knock from the €2 departure tax which was introduced in Budget 2009.
Speaking in the Dáil on the Finance Bill, Deputy Flynn said that the charge discriminates against the Mayo airport for a number of reasons.
She referred to a UK example, whereby airports in the highlands and islands regions of Scotland were exempt from a similar charge because of their location.
“I recognise that the Minister has reduced the departure tax from €10 per passenger to €2 per passenger and has taken account of the concerns raised by the regional airports, especially those on the western seaboard. The lower €2 tax will apply to departures from any Irish airport to a destination 300km or less from Dublin Airport. This means all Irish departures to locations such as Manchester, Liverpool and Glasgow will be subject to the €2 charge. This measure is more equitable than that proposed in the budget and it removes the advantage given to passengers flying to UK destinations from Dublin rather than Knock.
“However, I am still not satisfied and I do not believe the €2 charge should apply at all to the airport at Knock. The charge has and will continue to have a negative impact on tourism. The benefits to the State coffers will be negated by the drop in tourism revenue which will occur in the west of Ireland as a result.”
Deputy Flynn then went on to correct what she referred to as incorrect assumptions about smaller airports.
“There is an assumption that the airport in Knock is dependent on operational subsidies, that the main services connect to Dublin and that it is a loss-making airport. These assumptions are incorrect. Ireland West Airport is a low-cost, profitable, independent airport. It receives no operational subsidy. Some 97 per cent of the traffic is direct to 28 international destinations. Will the Minister acknowledge that certain aviation policies currently in place in the country provide the airport in Knock with a competitive disadvantage and constraint?
“I highlight these facts and draw the attention of the Minister to the fact that those in County Mayo and the airport at Knock are already discriminated against. Given the similar experience of the regions in the UK referred to above, there is a good case for exempting Ireland West Airport Knock from the €2 charge. It is still not too late to do this and I call on the Minister to examine the possibility,” she concluded.
