Aviation: Passenger Duty

Lord Davies of Oldham Excerpts

Wednesday 25th January 2012 Lords Chamber

[Lord De Mauley]

My Lords, we have recently gone through a full consultation exercise on this. In answer to my noble friend’s question about the effect on the economy, the Government’s top priority remains to tackle the fiscal deficit. That means that these APD revenues must be maintained for the foreseeable future. The Government believe that the aviation sector should continue to make a fair contribution to the public finances.

[Lord Davies of Oldham]

My Lords, both the noble Lord today and the Minister on Monday made it absolutely clear that this tax is about revenue-raising. Why, therefore, has he indicated this concession for private jets, while the tourism industry, particularly in relation to the Caribbean, is being affected adversely? Why are the Government not consistent in their approach to industry?

[Lord De Mauley]

My Lords, I am speechless that the noble Lord opposite, who was an esteemed member of the previous Government who did nothing about the taxing of business jets for 13 years, should raise the issue at all.