asked the Minister for Transport if he has recently required United States airlines to increase air fares to Ireland.

Following the talks with the US authorities in March last both sides agreed that the incentive group fare and bargain fares including the stand-by fare should be adjusted upwards from 1 June by one of the US scheduled airlines operating to Shannon. Fares to Ireland by the other US airline are not affected.

It is an important objective of our air transport policy to secure regular and stable air services on a year-round basis. This is essential for tourist development, especially the extension of the season, and for the development of business and trade between Ireland and the US. To secure year-round service requires that fares be pitched at a level which will offer attractive travel opportunities for the public and at the same time cover the airline's costs. The upward adjustments agreed at the recent talks were necessary because of the uneconomic nature of the fares in question and their likely diversionary and destabilising effect on the market.

Can we take as being correct the statement of an executive of Transamerica Airlines that they were looking for a lower fare between this country and the US but the Minister's Department would not allow this lower fare?

I am not aware of the statement the Deputy refers to. I would remind him that those fares were agreed at the bilateral talks between the US and the Irish authorities.

The report to which I refer was published in The Irish Times on 10 April last. As there has not been any contradiction I presume that this statement is correct that their airline had to charge a higher fare.

I am not responsible for whatever reports are printed in The Irish Times and, as I said, I am not aware of this report. However, the Deputy may, if he wishes, draw it to my attention at a later stage.

Is the Minister denying it?

I have not seen the report and I am not responsible for what is in it.

The report said that they have to charge higher fares at the insistence of the Minister's Department.

The fares were agreed between the US and the Irish authorities at the bilateral talks. This is the way the matter is handled.

At the insistence of the Minister's Department.

My Department and the US authorities sat down at a table and worked the matter out. That was the agreement that was reached.

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