(2 years, 1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
My hon. Friend has hit the nail on the head in a succinct way, which I hope to elaborate on over the next few moments.
The Irish Government took action because they regard citizens on the island of Ireland as Irish citizens, if they choose to be so regarded. Unfortunately, our Government have not done the same. There are those who are resident in Northern Ireland, and have been for decades, who must be able to do the same for a British passport as those who choose to be Irish can do for an Irish passport, yet they are not permitted to do so. We have an open land border with more than 280 crossing points along its 300-mile length and we are all familiar with the issue in relation to the protocol, the EU and all those things. Over decades and for generations, communities and families have traversed this open border for business and socialising. For that reason and because of the common travel area, successive British Governments have indicated that they do not mind which nationality people prefer to have.
According to UK law, anyone born before 1949, when the Republic of Ireland left the Commonwealth, who wishes to become a British subject can do so, but anyone born after 1949 cannot. That means that if someone were born in the Republic in 1950 and the day after their birth moved to live in Northern Ireland, became a UK resident, grew up and became a UK taxpayer and UK voter—in one famous instance they sat in the British establishment of the House of Lords—they would still not be regarded as a British citizen, because they were born at the wrong time. People born a few miles across the border are disadvantaged in this way. They have to go through the same naturalisation process as people coming from the other end of the earth in order to be regarded as British citizens. This has obviously created angst and annoyance.
We now have a tale of two passports. One is a passport of the United Kingdom of Great Britain and Northern Ireland, which people like me cherish and will have for as long as we live, as will our children and grandchildren. The other is of the Irish Republic, which some people in Northern Ireland are forced to have because they cannot have the passport they associate with their sense of identity, allegiance, loyalty and belonging. They are British, but they are forced to have an Irish passport, because they of an accident of birth a mile on the wrong side of an open border.
I am grateful to my hon. Friend, who has campaigned on the issue for many years. Does he agree that it has been clear throughout the peace process and indeed stretching further back that the British Government have been incredibly generous to those who want to take Northern Ireland out of the Union and have made Northern Ireland an incredibly accommodating and welcoming place for them? Does he agree that they have been generous on citizenship and dual identity and such issues, but when it comes to supporting those who believe in the Union, choose Northern Ireland as their home and who have been British citizens for the majority of their life, the generosity does not stretch that far?
My hon. Friend’s comment is very appropriate and accurate. In fact, many draw on the contrast of how our Government treat those who want to break up the United Kingdom and Northern Ireland compared to those who would prefer that we remain, because we are, in the words of what is more than a cliché, better off together.
The issue at the moment is that some people have an Irish passport because they need it to travel, but they would prefer to have a British passport. The Home Office in effect say to them, “Just naturalise. Just pay the £1,330 to get what is your right.” If they go on to the Home Office website—I hope the Minister can read this paper even from this distance, as I have enlarged it—the first page reads:
“Check if you can become a British citizen”.
They already are! That is what they demand. That is what they have been for decades, and then the Home Office says to check if they can become a British citizen. There is nothing more insulting or demeaning than to have that on the Home Office website. It tells them, “Well, of course you can avail yourself of British citizenship, now trot along and fill out the necessary form. Then apply for the passport and you will get one.”
Meanwhile, the neighbour in the house next door—or, in some cases, family members who were born at a different time—may want to have an Irish passport and may never even have visited the Irish Republic. They simply go along to the post office and ask for an Irish passport application, fill it out and attach the necessary fee, and an Irish passport comes in the post. The Irish Government have declared that they are prepared to recognise those people as Irish if they choose to apply for a passport. We want our Government to do exactly the same.
People have chosen and demanded to be regarded as British because they have lived here virtually all their lives—in some cases, for 60 or 70 years. They should not be forced down the route of applying for citizenship and going through the naturalisation process, which applies to people who come from thousands of miles away. That is particularly true when the same Government say repeatedly to everybody in Northern Ireland, “We accept that it is a diverse place.”
Successive Governments have repeatedly said they accept that many people regard themselves as British—I hope they will remain so—while some regard themselves as Irish. Each United Kingdom Government here in Westminster say that they accept those people’s right to be so regarded—except when it comes to the symbolic matter of owning a passport. What greater symbol is there of a person’s sense of belonging and nationhood, of who we are and what we are, than a passport? It describes who someone is and, if they are overseas and get into difficulty, to whom they should go for assistance. However, these thousands of people are regarded differently.
I understand that the Minister is Minister of State for the Northern Ireland Office, and that this is primarily a matter for the Home Office to resolve, but I hope that he will acknowledge in his response the hurt and anguish that people have felt over many years. I hope that he can relay to the Home Office the fears, views and demands of people who want this insult rectified.
Successive Home Office Ministers have come to the Northern Ireland Affairs Committee and tried to defend this, saying that they do not regard some of these people as the people of Northern Ireland, even though they have lived there all their lives. This is indefensible and it cannot be sustained. I hope that the Minister will take action with his colleagues in the Home Office, whose responsibility it is primarily to respond. I hope they will deal with the matter satisfactorily for all concerned, because there is nobody in Northern Ireland who objects to this proposition.
(6 years, 4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister does not need to be encouraged on the merits of leaving the European Union or indeed on the benefits, flexibility and freedoms that it will give us as a country to chart our own course and to set preferential tax rates that are beneficial and encourage growth, which I think must be a key factor for the Treasury.
I have mentioned the confidence and supply agreement and the call for evidence that was published. I understand that there has been extensive engagement, particularly from Northern Ireland industry, the airlines and all of those affected by this arbitrary tax. The consultation closed on 5 June and we look forward not only to the thoughtful engagement of the Treasury, but to its purposeful response. The issues that it took evidence on are the same issues that have applied to this debate for years. When the Treasury says that it wants to explore the economic impact of APD, it is exploring the same reports that were presented to it in 2011, 2013 and 2015—exactly the same reports carried out using exactly the same modelling—which indicate that scrapping air passenger duty would be a net gain to the UK Treasury. I do not say that superficially, but whenever we stand before a Treasury Minister or try to argue with the Treasury and say, “We want to have this cut for a boost,” they look at you and say, “This will cost us money. If we take from this pot, how will we supplement it in another way?” The call for evidence will show, as every economic forecast has shown, that there is a net economic benefit to the reduction of air passenger duty.
I congratulate my hon. Friend on securing this debate. Does he agree that the major competitor to all of Northern Ireland’s airports—International, City and Londonderry—is Dublin? Dublin Airport has now attracted tens of millions of passengers. It is one of the fastest growing airports in western Europe and the Irish Republic does not have APD. We need a very competitive industry. Cancelling APD would give our airports a magnificent advantage over Dublin.
My hon. Friend is right. I will come on to those Northern Ireland-specific issues, but first I will touch on the 2013 PricewaterhouseCoopers report. PwC uses—this will mean something to the Minister, and probably a lot to the officials sitting behind him, although it does not mean much to a layman like me—a computable general equilibrium model: exactly the same model that the Treasury uses when considering economic impacts. PwC updated its report in 2015, but the 2013 report was clear: scrap air passenger duty, and the Treasury will gain—not lose and claw back, but gain.
As a country we have gone from getting £343 million per year from air passenger duty in 1999, to £3.9 billion last year, with £4 billion estimated by 2021. When PwC updated its model in 2015, it said that there would be a direct boost to this country’s GDP of 0.5% in the first year, not a loss. How many times do we see newspaper headlines with every political decision that is having a detrimental impact on our GDP? Yet here is a simple and clear way that the Treasury could make a positive and progressive move that would lead to an increase in GDP in the very first year.
PwC said in 2015 that if we had done it that year, by 2020 we would have had 1.7% economic growth. That would have meant 61,000 additional jobs in this country, stimulation of our tourism and hospitality sectors, growth in business, 61,000 more families benefiting from a good income, 61,000 more families not otherwise relying on the state, and more revenue raised in tax than would be lost in abolition. If we can push one message, whether through the consultation, the call for evidence or the plethora of modelling and economic data that has been provided to the Treasury, it must be this: more tax revenue will be raised with the abolition of APD than its retention—an extra £570 million per year, had the decision been taken in 2015. That is not the £4 billion we are hoping to get, but £2 billion on top of that by 2020. That is a 50% increase, and were I a Treasury Minister I would jump at the chance.
Northern Ireland is, of course, close to our hearts. We have to look at the competitive disadvantage in Northern Ireland compared with our near neighbours in the Republic. Travelling from Belfast to Dublin airport is no different from travelling from Manchester to Birmingham. It is only 100 miles, so when someone is considering where to fly from and how much it will cost, the economic attractiveness of flying from Dublin is incredibly strong.
I do not put those figures forward to suggest that the UK tourism industry is in a bad place; it is not—we rank fifth out of 136 nations in travel competitiveness overall. However, on ticket price competitiveness, the Treasury report says we are 135th out of 136 countries. When someone is faced with the attractive economic proposition of travelling 100 miles down the road to Dublin, that is a barrier to growth in Northern Ireland, to additional connectivity, and to greater opportunity for leisure travel. It is frustrating and constraining the economic stimulus that we in Northern Ireland desperately need, and that our businesses crave.
In Northern Ireland we have had an 11% increase in travel, with 17% more air passengers going through our airports over the last five years. That sounds good, as the UK average is 22%, but what are Dublin’s figures? In 2014, the Republic of Ireland scrapped air passenger duty. From 2014 to 2018, the number of air passengers going through Dublin’s airports rose by 47%. That is an additional 9 million travellers, 1.2 million of whom come from Northern Ireland. That starkly illustrates what we are attempting to highlight. On average, 25% of the cost of a one-way short-haul ticket in this country is air passenger duty. It is not small beer; it is a considerable consideration for anyone seeking to travel.
The Northern Ireland Affairs Committee, which I served on during the time of the inquiry, has considered both the reduction and the abolition of air passenger duty, as well as a reduction in VAT. The debate does not focus on VAT but on air passenger duty. However, in our view the two are intertwined, and the Northern Ireland Affairs Committee agreed. The Republic of Ireland cut its VAT rate for tourism and hospitality, bringing it down to 9%. That means, again, that that industry has a competitive advantage. If somebody goes to visit the island of Ireland they will see our hospitality figures, hotel rates and so on with a significant uplift.
When the Republic of Ireland cut its hospitality and tourism VAT, there was a significant benefit to the economy again. For every percentage point dropped—and the rate went down to 9%—there was an increase of 1.7% in employment. That directly led to 4,800 new jobs in the Irish Republic, because it had the courage to cut the VAT associated with hospitality and tourism. The Northern Ireland Hotels Federation and Hospitality Ulster are clear that the economic benefit and growth created in the Northern Ireland economy through that simple reduction could result in 1,100 jobs.
I understand that we have two tax rates for VAT in this country—20% and 5%. We are constrained to those two at the moment, and even if we were not, we might not choose to have three, four or five because of the increase in burden. However, the Northern Ireland Affairs Committee was quite clear that the disparity makes a distinct difference when Tourism Ireland, which is charged with promoting tourism on the island of Ireland under the Good Friday agreement, is promoting Northern Ireland, as opposed to the Republic of Ireland.
I hope that the Minister will not only outline a timetable for considering the Treasury’s call for evidence, but show an earnest desire to take, once thoughtful consideration has been given to the mounting evidence that has been compiled over years, reasonable, beneficial, appropriate steps to stimulate the aviation sector across the United Kingdom, tourism and economic growth in Northern Ireland. I hope that we look at not only the specific calls of the Northern Ireland Affairs Committee on the abolition of APD and the reduction of tourism VAT, but other models as well.
One such model could be a route development fund. We could charge no APD for a three-year window. That would be a good way to test whether or not it is an economic barrier or detriment. There would be no loss to the Treasury on any new route, because it would just not charge for such a route. A route development fund would encourage growth and stimulate the sector to get business destinations, which we crave in Northern Ireland, such as Frankfurt in Germany, France or even transatlantic flights to the United States. We could give a route development fund three years to see whether it makes sense, and whether air passenger duty has been a significant barrier. Allow a route to develop without the threat of air passenger duty, allow it to stabilise and grow, and we believe that fruit would be borne through that sensible policy.
(8 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I am indebted to the hon. Lady. She is entirely right. At a time of grief and sorrow, pride sometimes gets in the way of people seeking the support they most earnestly need. While quietly and under the surface there are many membership organisations that, through benevolence, step in to support, they should not have to.
We are burdening those in receipt of benefits with a 62% deficit of £2,300. I know that the Government’s position—indeed, it was accepted by the Select Committee—is that in all these instances people have a choice to make. They have a choice as to what type of funeral they have, whether they engage the services of a funeral director and whether they assume additional costs. We accept that people have choices.
I congratulate my hon. Friend on securing this debate. He talks about choices. Does he agree that one of the invidious choices that some families have to make is going into considerable debt from a variety of sources in order to pay for a funeral? At a time when immediate relatives and next of kin are grieving tremendously and finding it very difficult to make ends meet, this added burden sometimes leads them to go to money lenders or other sources to get the resources.
My hon. Friend is absolutely right. When the Government talk about choices, they also express a desire for the ideal situation that people make provision for their own end of life. Ideally, that is what we should do. Ideally, it should come from our estate and from our savings, but those who are most in need are recipients of benefits from this society because we recognise that they cannot pay for themselves.
I ask this question of the Minister—I do not do so glibly, but it starkly illustrates the difficulty we have. Take JSA as one example. A recipient of JSA gets £73.10 per week. How much of that £73.10 do Government believe should be set aside for funeral provision? I do not wish to be facetious: that is the serious concern of many people who struggle by themselves and do not get enough from Government. We are saying, “Really, you should be saving for after life as well.”