Oral Answers to Questions

Debate between Baroness Morgan of Cotes and Paul Goggins

Tuesday 5th November 2013 Commons Chamber

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

4. If he will introduce a time-limited exemption from air passenger duty on new long-haul routes from uncongested airports.

[The Economic Secretary to the Treasury (Nicky Morgan)]

The Government are always open to ideas that promote regional growth. The Airports Commission will shortly publish a report on the best use of existing airport capacity in the short to medium term and the Government will take its findings into account in our response.

[Paul Goggins]

I am grateful to the Minister for her answer, and I welcome her to her position. As part of the growing links between the north-west and China, Manchester airport is seeking to develop a new route to Beijing, but one of the major obstacles is the very high level of UK APD. Will she take a careful look at new research by York Aviation, which has concluded that a time-limited exemption from APD on new long-haul routes from regional airports would make the Manchester-Beijing route immediately viable?

[Nicky Morgan]

I thank the right hon. Gentleman for his question. The Government will always take a look at the evidence. In fact, we debated APD in the House only the week before last. In October 2012, Her Majesty’s Revenue and Customs published modelling on price differentials at UK airports, and it showed that even large price changes have a relatively small impact on total passenger demand, but I am sure he will welcome my right hon. Friend the Chancellor of the Exchequer’s announcement of the £800 million investment in Airport City in Manchester, which will create over 16,000 jobs. The involvement of Beijing Construction Engineering Group as a partner in this project is the latest in a line of new partnerships being forged between the UK and China.