Wales Bill

Lord Hunt of Wirral Excerpts

Committee: 3rd sitting (Hansard - continued): House of Lords
Tuesday 15th November 2016 Lords Chamber

[Lord Wigley]

My Lords, I will speak briefly in support of Amendment 96, so ably moved by the noble Lord, Lord Rowe-Beddoe. We are glad to hear his expertise in this particular debate.

The amendment provides for the devolution of air passenger duty to the National Assembly for Wales. As has been mentioned, long-haul air passenger duty is already devolved to Northern Ireland and Scotland. It was included as a key part of a carefully crafted package of devolved measures in the recommendations of the Silk commission—of which the Minister was a central part—and would be used to give competitive advantage to Wales.

Plaid Cymru MPs attempted several times to include APD devolution in the other place, but this was met by a deluge of England-centric counterarguments from the Secretary of State and his Ministers. They seemed more interested in the possible effects of devolving APD to Wales on airports in Liverpool and Manchester than the benefits to Wales. I exclude the noble Lord from this criticism, which is based on what was said on 11 July in another place, but I am dumbfounded as to how Wales Office Ministers, who are meant to be working in the interests of their constituents, can justify their position in prioritising English airports. In this instance, I gently say to government Ministers that their job is to stick up for Wales—goodness knows, there are enough other people in the Palace of Westminster to argue England’s corner.

A recent Western Mail poll found that 78% of Welsh people are in favour of devolving APD, showing that public opinion is clearly on that side. Increasing footfall at the airport would generate substantial revenues elsewhere in Wales, and enable Wales to better market itself for trade, tourism and inward investment purposes, which will become a top priority in the post-Brexit world which we, sadly, will soon inhabit. Let us also remember that Cardiff Airport is owned by the people of Wales. It should be a matter for Welsh Ministers to decide on an aviation strategy that best serves those people. Airports in England should not have the power to determine government policy and block a beneficial Welsh devolution settlement. I support the amendment.

[Lord Hunt of Wirral (Con)]

My Lords, I have to start with an apology. I think this is the first occasion on which I have ever disagreed with my noble friend Lord Rowe-Beddoe. I cannot agree to his proposed new clause—“Tax on carriage of passengers by air”—for three reasons. I hope that when I say what I am about to say, he will recognise that I worked very closely with him in attracting inward investment to Wales and, indeed, in and around Cardiff Airport.

My first point is that, sadly, this debate, like so many debates about the great country where I was born, is centred on south Wales. There has been no mention, apart from a sudden reference just now by my noble friend Lord Wigley, to Liverpool and Manchester airports. I view the airports of England and Wales as a whole, and I will come to a solution in a moment, but Cardiff is certainly not the airport of choice for people living in and around where I was born. It is certainly not the airport of choice for those in central Wales. Indeed, the needs of a large part of the geographical territory of Wales are not met by Cardiff.

Secondly, I have never been a strong supporter of air passenger duty. No doubt, when all the volumes are written and all the Cabinet papers published, it will be seen that I was never a supporter of APD or insurance premium tax. However, I have to acknowledge that it is a very clever way of raising revenue—so much so, as the noble Lord told us, that I think it now totals £3.1 billion a year. The noble Lord seeks, with the best of intentions, at one single airport, to make it possible for the owners of that airport—by the way, I think there is a conflict between owning the airport and setting the tax—to be able to move the duty up or down. Because it is such a clever way of raising money, if the Welsh Government were ever a little short of revenue—and I think they usually are—it would be perfectly possible for them, under his proposed new clause, to raise the amount of revenue from APD. I just do not think I want to go down that route.

Thirdly, there is an urgent need to develop a better policy for regional airports. I am aware that the Government published a consultation paper—last year, I think—looking at the future of regional airports. We are, after all, the Parliament of the United Kingdom, so I would have thought we had to look at regional airports across England and Wales to find the best possible policy for ensuring their success.

I think there are three possibilities. The first is to devolve air passenger duty within England and Wales, a possibility that, if I recall correctly, was raised. Secondly, rates could be varied from airport to airport, with a view to strengthening the claims of that particular airport. Thirdly, we could give much more aid to regional airports. I recall, and the noble Lord may remember this, that several of the companies that decided to make substantial inward investment in Wales cited the efficiency of Heathrow Airport as the reason they were able to come to Wales.

As the Parliament of the United Kingdom, we ought to look at the policy for regional airports as a whole. I do not know whether the Minister can give us any idea when we will see a policy applying to regional airports in England and Wales, but I hope we will soon. In the meantime, do not let us go off in one direction or another in favouring or disfavouring one particular airport. We have to strengthen regional airports in England and Wales as a whole.

[Baroness Morgan of Ely]

My Lords, I agree with the case eloquently put by the noble Lord, Lord Rowe-Beddoe, and others. A reduction in air passenger duty would help air passengers, support growth and jobs and cut costs for businesses. I urge the Minister to support this amendment.