Aviation: Passenger Duty

Baroness Benjamin Excerpts

Wednesday 25th January 2012 Lords Chamber

[Lord De Mauley]

My Lords, that is quite a question. The Caribbean issue was addressed extensively when my noble friend Lord Sassoon answered questions on Monday. As regards whether it is a tax dressed up as an environmental duty, broadly speaking I agree with the noble Lord. It is a revenue-raising duty which makes an important contribution to the public finances.

[Baroness Benjamin]

My Lords, BA has cut scheduled flights to the Caribbean. Travel agents that serve the region are feeling the pinch as fewer people are travelling, meaning a loss of APD revenue to the Treasury. However, last week the Foreign Secretary, William Hague, stated at the UK Caribbean Forum that the Government had not closed the door on further discussions with regard to APD. That is most encouraging, especially to the UK Caribbean diaspora who feel betrayed. However, in the mean time, will my noble friend tell the House what plans the Government have to provide economic support to the Caribbean now that many livelihoods are threatened by the unfair banding of APD?

[Lord De Mauley]

My Lords, I recognise the importance that my noble friend places on this issue. As I said, the question of the Caribbean was addressed extensively by my noble friend earlier this week. I have nothing to add at the moment but as soon as I do, I will bring my noble friend up to date.