Aviation: Passenger Duty

Debate between Lord Mawhinney and Lord De Mauley

Wednesday 25th January 2012 Lords Chamber

[Lord De Mauley]

I have said that it is a tax. I am not prepared to go further than that.

[Lord Mawhinney]

My Lords, given my noble friend’s answer to the noble Lord, Lord Morris, and that this duty will not come in until 2013, does that not give the Government the opportunity comprehensively to review the whole issue of this duty and perhaps to come up with a tax in its place which promotes UK growth, is less damaging to the competitiveness of UK carriers and is explained in a way that moves away from relying on an essential environmental message, which, frankly, few now believe, to some explanation for the tax that is more credible?

[Lord De Mauley]

My Lords, we have recently gone through a full consultation exercise on this. In answer to my noble friend’s question about the effect on the economy, the Government’s top priority remains to tackle the fiscal deficit. That means that these APD revenues must be maintained for the foreseeable future. The Government believe that the aviation sector should continue to make a fair contribution to the public finances.