Exiting the EU and Transport

Callum McCaig Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Drew Hendry]

I am happy to answer that. When I was a retailer many years ago, the UK Government introduced an increase in VAT. Before that VAT increase hit, there was a rush to the shops to buy goods. After that increase hit, things fell through the floor, and I think we will see a similar effect.

Scotland has a large number of regional airports, many of which are reliant on low-cost airlines and outbound tourism to survive and to be an economic success. As I have said, the International Air Transport Association predicts a reduction in outbound travel. Since the EU referendum, sterling is down 25%. For airports such as Prestwick, it is even more vital that we continue the open skies agreement to maintain the number of outbound passengers, so it is incumbent on the UK Government to give an unequivocal guarantee that the UK will stay in the single aviation market after we are taken out of the EU. With 76% of UK holidays abroad being taken in the EU, outbound tourism is key for the industry. Outbound tourism employs more than 215,000 people across the UK, and it is a key driver in ensuring that our regional airports are successful. Remaining in the open skies single aviation market is vital to ensure that our airports remain economically viable, and low-cost airlines are vital if regional airports are to be a commercial success.

[Callum McCaig (Aberdeen South) (SNP)]

My hon. Friend has talked about airports relying on bringing in tourists. Aberdeen airport is heavily reliant on business traffic, but with the difficulties that the oil and gas industry has faced, the airport has redirected its efforts towards sun destinations in the likes of Spain and towards eastern Europe. What kind of message does the lack of clarity about the plans send to an airport that is looking to diversify its offering?

[Drew Hendry]

My hon. Friend makes a good point, and he underlines the theme that I am working on just now. This uncertainty is bad not only for business, but for consumers, passengers and everybody involved.