Air Passenger Duty

Lord Newby Excerpts

Tuesday 11th January 2011 Lords Chamber

[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.

[Lord Newby]

My Lords, is the Minister aware that the APD is seen to be particularly unfair on the Caribbean? Will he ensure that as part of the review which the Government are undertaking, particular attention is given to the effect of the APD on the Caribbean, not just on the tourist industry there, which is increasingly important as a proportion of its economic activity, but on the Caribbean diaspora who live in the UK?

[Lord Sassoon]

I am grateful to my noble friend for drawing attention to the Caribbean. The Caribbean Tourism Organisation has produced a very helpful report as a contribution to the debate. I have met the Heads of Government of the dependent territories in the Caribbean, so I have heard first hand their strength of feeling in respect of this issue. However, under the Chicago Convention we have to have an objective basis for distinguishing between one country and another.