Oral Answers to Questions

Naomi Long Excerpts

Tuesday 11th September 2012 Commons Chamber

[Mr Gauke]

There is no doubt that such a policy would be taking an enormous risk with interest rates and our credibility. This Government are not prepared to take that risk.

[Naomi Long (Belfast East) (Alliance)]

11. If he will commission research to determine the effect of air passenger duty on UK holidaymakers, employment and economic growth.

[Ms Margaret Ritchie (South Down) (SDLP)]

12. What assessment he has made of the effect of air passenger duty on tourism and the regional economy.

[The Economic Secretary to the Treasury (Sajid Javid)]

The Government undertook an extensive consultation on air passenger duty last year. The consultation gathered views and evidence from stakeholders—more than 500 responses were received from all sectors. The Government published our response to the consultation on 6 December 2011 and we have no plans to commission further research.

[Naomi Long]

As the Minister is aware, the issue of direct long-haul flights has been dealt with. However, that is a small but important part of the market—most people will travel to or through another UK airport, and passengers from Northern Ireland will pay APD twice, because there is a restricted number of through-carriers. Do the Government believe there would be merit in reviewing APD generally so that it is more supportive of tourism and business, and of growth?

[Sajid Javid]

The hon. Lady is passionate about this issue, and I thought she would welcome the measures that the Government have taken, which have made a significant contribution. I hope she joins me in realising that the Government have made substantial progress. He also knows that the Chancellor announced in the previous Budget that the Government are looking at other things that can be done to boost the Northern Ireland economy.