Air Passenger Duty

Debate between Adam Afriyie and Henry Smith

Thursday 1st November 2012 Commons Chamber

[Henry Smith (Crawley) (Con)]

This debate is most important for the well-being of the British economy. I would like sincerely to thank the Backbench Business Committee for allowing time on the Floor of the House for today’s debate, and I particularly pay tribute to my hon. Friend the Member for Witham (Priti Patel) for helping to secure it.

It is perhaps of little surprise that I take a great interest in this subject, as I represent the constituency that contains Gatwick airport—the world’s busiest one-runway, two-terminal airport—and it is also the home of a number of aviation-related companies. We have tour operators, globally renowned companies such as TUI Travel and, of course, British Airways operating from Gatwick. We have the headquarters of Virgin Atlantic, an iconic British company that is innovative in the services it provides, and we also have easyJet, now this country’s largest airline with about 40% of the flights from the area—indeed, 1,078 easyJet flights go out of Gatwick airport every week. I am delighted to say that, from next spring, easyJet is starting a new route to Moscow. It is little surprise, then, that many of my constituents who work locally in the aviation industry are deeply concerned about air passenger duty. Mention was made of the number of e-mails that right hon. and hon. Members received from the fair tax on flying campaign, and I believe I received more than 1,000 such e-mails.

It is not for parochial reasons, however, that I speak in today’s debate and raise my concerns again about the level of APD that we charge. Almost a year ago, I was fortunate enough to be granted an Adjournment debate and warned that if APD were to be increased, as was suggested, we would do some real damage to this country’s economic prospects.

I entirely understand why the Treasury is seeking to bring in revenue. We are all acutely aware of what is happening to the national finances. The deficit that we are sustaining is deeply troubling, and although I warmly congratulate the Government on reducing it by a quarter in just two and a half years, it is little wonder that the Treasury does not view with enthusiasm the prospect of giving up an income of almost £3 billion in APD receipts.

[Adam Afriyie (Windsor) (Con)]

Although the Exchequer may be raising between 2 billion and £3 billion from air passenger duty, it may be losing an equivalent amount, if not more, as a result of the reduction in trade and improved economics. Is it not for that reason that we should demand a forward view of the economic impact?

[Henry Smith]

My hon. Friend has anticipated what I was about to say. The Netherlands scrapped air passenger duty after studies conducted by the Dutch Government established that it was costing the economy more than it was bringing into the Treasury. I think that it is for the same reason that only six European countries charge any form of air passenger duty, and the amounts that they charge are very modest.

Consumer Protection (Private Car Parks) Bill

Debate between Adam Afriyie and Henry Smith

Friday 13th May 2011 Commons Chamber

[Henry Smith]

I agree. If somebody contravenes the conditions for parking on private land, it is perfectly reasonable for the private operator to seek restitution. However, as I said earlier, operators often claim that people have not purchased a ticket when, in fact, they have, and demand payment. There are many responsible private car park operators, but I regret that a minority let down the industry.

[Adam Afriyie (Windsor) (Con)]

I welcome the Bill, irrespective of the outcome today. In Windsor, we have a car park such as my hon. Friend describes, so I encourage him to make his case as forcefully as possible. It is important that people have a sensible form of redress when they are incorrectly or unfairly treated by private car park operators.

[Henry Smith]

I am grateful to my hon. Friend for his support.

My instincts are not to reach for the statute book and additional regulation, but there is a gap in the legislation and it needs addressing. The provisions of my Bill would do that straightforwardly, at no additional cost to the taxpayer. The Bill would give local authorities a licensing function over the operation of publicly available paid-for car parking. Just as taxi companies or public houses are licensed, so too, through an application fee, could private car parks be licensed, to ensure that rogue operators behave responsibly.

People might say that surely the industry can regulate itself, and there is indeed a body—the British Parking Association—but it supports the Bill, because it recognises that self-regulation has not worked. Other organisations, such as Consumer Focus, the AA and the RAC, also support the Bill.

The Bill offers relief to the motorist, who can fall foul of the somewhat questionable practices of a minority of operators. Liverpool Victoria estimates that motorists are paying apparent fines or penalties of about £60 million a year. They should not be paying those penalties and they should have the right to appeal. With that brief conclusion, I commend the Bill to the House.