Aviation: Passenger Duty

Lord Campbell of Alloway Excerpts

Monday 23rd January 2012 Lords Chamber

[Lord Sassoon]

My Lords, although I do not underestimate for one moment the effect on the Caribbean, there will be very many businesses located there, here and in other places for which air passenger duty is a burden. The present system of four bands was introduced by the previous Government. We had a one-year freeze in order to recognise the difficult situation in which people were placed by this and we looked at it. However, the fact is that the APD raised approximately £2.5 billion in 2011-12 and is an important revenue-raising duty.

[Lord Campbell of Alloway]

My Lords—

[Baroness Gardner of Parkes]

My Lords, what would be the effect of the suggestion that was made about Bermuda? Would it be possible for the Caribbean countries to reclassify themselves with Bermuda? What would that involve and would it make quite a difference to them, as has been claimed with regard to the United States?