Call Ryanair's bluff over tax, says Noonan
AS Ryanair warns of further cutbacks at Shannon Airport, Fine Gael's Michael Noonan TD has urged the Government to call Michael O'Leary's bluff over the €10 airport departure tax.
The Ryanair boss blamed the "tourist tax" for the decision to slash Shannon services in June, a move that results in a fall in passenger numbers of 700,000; 20 fewer weekly flights and 100 jobs with the airline.
And the Limerick Leader revealed last week that further pain is on the cards at Shannon after Ryanair head of marketing Lesley Kane warned of further cutbacks in "the next couple of weeks".
The Government has rejected claims that the levy is damaging Irish tourism but Deputy Noonan wants Transport Minister Noel Dempsey to now cut a deal with the airline where the tax could be eliminated subject to Ryanair delivering an agreed number of tourists. This would be reviewed after two years, Deputy Noonan suggested.
"For some time now, Ryanair, led by Michael O'Leary, have been running a public campaign to get rid of the travel tax. He claims that this tax has affected the competitiveness of Ryanair and has deprived the country of up to one million tourists," said Deputy Noonan.
Minister Dempsey has told the Limerick Leader that the Government "needs the money" raised from the tax to reinvest in hospitals and schools. The tax would realise €75 million to €80 million for the eight applicable months of this year, rising to €150 million in 2010, Minister Dempsey said.
But with tourist numbers in retreat, Deputy Noonan has claimed the yield to the Exchequer is likely to be "less than €70 million per annum".
That was "a significant sum of money, one might say, but a paltry amount in context with the €90 billion to underpin NAMA, the €7 billion to recapitalise the banks and the €5 billion being sought in cutbacks from the Board Snip menu".
"The Government should take Michael O'Leary at his word and negotiate with him. The agenda for the negotiation is simple.
The Government will abolish the travel tax if Ryanair delivers the extra tourists. Target numbers of additional tourists should be set for each of the airports that Ryanair services. The agreement to drop the travel tax should be for a two-year period and if Ryanair fail to deliver on the targets set, then the Government would be free to restore the tax," Deputy Noonan suggested.
He has also accused the Government of being so consumed by the public finances and banking crisis that it is neglecting the damaging effects of the tax on tourism.
"The Government are totally caught up in balancing their books and in saving the banks," he said.
"These objectives are necessary at present but while they concentrate on them, they are ignoring the needs of the wider economy.
Jobs must be protected and created .The hospitality industry is in crisis. Hotels and pubs are closing down on a weekly basis.
Thousands of jobs are at risk and the Government stands idly by.”
“Fianna Fail should not let a personal vendetta with Michael O’Leary stand in the way of a potential one million additional tourists coming to Ireland.
“They should cut the deal, I suggest, and save Irelands tourist industry,” Deputy Noonan concluded.
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Thursday 24 May 2012
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