Aviation: Passenger Duty

Lord Morris of Handsworth Excerpts

Wednesday 25th January 2012 Lords Chamber

[Lord De Mauley]

My noble friend will be very pleased to hear that his two-seater, provided it is propelled by a propeller, will be exempt.

[Lord Morris of Handsworth]

My Lords, in light of the Question on the Order Paper, do the Government now accept that the air passenger duty was falsely promoted as a positive measure towards mitigating climate change? Is it not just a Robin Hood tax in reverse whereby the Government take from poor families in the Caribbean, as we heard earlier this week, and give to bankers through subsidising their private jets?

[Lord De Mauley]

My Lords, that is quite a question. The Caribbean issue was addressed extensively when my noble friend Lord Sassoon answered questions on Monday. As regards whether it is a tax dressed up as an environmental duty, broadly speaking I agree with the noble Lord. It is a revenue-raising duty which makes an important contribution to the public finances.