Aviation: Passenger Duty

Debate between Baroness Berridge and Lord Sassoon

Monday 23rd January 2012 Lords Chamber

[Lord Sassoon]

As I have explained, the previous Government moved from a two-band system to a four-band one, which raised in the order of £300 million when they came into office and, by the time they left office, was raising in the order of £1 billion. These things are not easy. Where there are real difficulties, however, the Government recognise them. For example, special arrangements have been put in place for long-haul flights out of Northern Ireland to recognise its very special circumstances—its land border with a country that has no APD—and to preserve its flights to the United States. We have said that we will also look at the possible devolution of APD to Wales and Scotland.

[Baroness Berridge]

My Lords, one of the ways in which the system deals with anomalies is to divide large countries such as the Russian Federation into two APD bands. Why has it not been possible to have such a solution for the United States and Canada, which remain in one band and which creates the injustice that my noble friend Lady Benjamin referred to?

[Lord Sassoon]

My Lords, after reviewing this question at considerable length, a decision was taken to leave well alone on all this. As I have tried to explain, as soon as one moves one thing, that opens up the question of all sorts of other adjustments to maintain the revenue.