Air Passenger Duty

Lord Clinton-Davis Excerpts

Tuesday 11th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, it is certainly not the Government’s intention to damage the competitiveness of any sector of the economy, least of all the tourist sector. I should remind noble Lords that the duty increase that came in on 1 November was announced by the previous Government and is something we are looking at. All these factors will be considered but this is not an easy matter; the previous Government reviewed the system at least once since its introduction.

[Lord Clinton-Davis]

I declare an interest as the president of BALPA. How does this proposed duty improve the environment? I do not think that it will at all, but I want to hear the Minister’s response. Does not this duty impose a serious and further blow to the prospects of our beleaguered airlines, so why insist on this pernicious duty?

[Lord Sassoon]

My Lords, the Government have not proposed anything yet. The coalition agreement talks about a change from APD to a per plane basis. Clearly, different constructions of the duty have different effects on usage of aircraft and on the environment. However, as I say, the Government have not proposed anything yet. We are in listening mode. The effect on the airlines, environmental effects and competitiveness are all issues that must be considered.