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Seanad
‹ Order of Business

Abolition of travel tax

Summary

Senators praise the Government’s abolition of the travel tax and its reported contribution to new air routes and tourism, while Senator Quinn seconds the related amendment.

I, too, extend my sympathy to our colleague Senator John Kelly on the death of his father.

Following the general election in 2011, the Government said it would reduce the travel tax to zero. It was reduced from €10 to €3 but, thankfully, the Government has honoured the commitment it made and, from today, there will be no travel tax on flights into and out of Ireland. The airlines have responded positively too, with more than 20 new flights into Ireland and increased capacity on existing routes. That is why the Government is fulfilling that commitment today. The abolition of this tax will greatly enhance the tourism potential of our country and will increase tourist numbers. Last year - the year of The Gathering - saw the most significant increase in visitor numbers since 2009, but the abolition of the travel tax will ensure that greater numbers travel to our country in the future.

Comment on this

Like everybody else, I extend my sympathy to Senator John Kelly on the death of his father. Coming so shortly after the deaths of Deputy Nicky McFadden and former Senator Edward Haughey, it is a reminder of how short life is and how we must fit as much as we can into our lives. I am sure we will get the chance to talk about the late Deputy Nicky McFadden and former Senator Edward Haughey at a later stage.

I second Senator Sean D. Barrett's amendment to the Order of Business.

Senator Michael Mullins spoke about getting the economy going and what we can do. I made a proposal a couple of years ago that the Government should release the money in pensions for those who wished to take it in order that they could spend it now rather than necessarily keeping it. Very minor first steps were taken in the budget last year. However, it was interesting to note last week that the UK Government announced that retirees would have the freedom to take out savings built up in any defined contribution scheme as a lump sum, subject to the marginal rate of tax. Instead of turning their savings into a guaranteed lifetime income as an annuity, they will have the opportunity to spend the money. This is something we should, and can, do. It will not cost the Government as it will get the tax on the money, but it could mean that money would be spent in ways that will enable the economy to benefit. I think it is something we should do. I believe the Minister's heart is in the right place, and he has taken the first steps, but he has a lot further to go. We have seen the example in Britain and I am delighted to think the British are listening to us, even if the Government here is not.

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