Chamber
Meeting of the Parliament 25 April 2017
25 Apr 2017 · S5 · Meeting of the Parliament
Item of business
Air Departure Tax (Scotland) Bill: Stage 1
It is my pleasure to speak as the convener of the Finance and Constitution Committee. I put on record my thanks to my fellow committee members for the constructive manner in which they went about their deliberations on the Air Departure Tax (Scotland) Bill. I also pay tribute to the professionalism of the clerking team in assisting us with our scrutiny of the legislation and thank all of the stakeholders for their contributions.
The Air Departure Tax (Scotland) Bill marks another important step, a milestone or even—dare I say it—a new departure in the implementation of the Scotland Act 2016. In scrutinising the bill, the Finance and Constitution Committee recognised that it is essentially an enabling bill. That is, the bill provides the means to tax passengers departing from Scottish airports when the UK’s air passenger duty is disapplied in Scotland with effect from April 2018. Without this bill, passengers leaving from Scottish airports would be able to fly untaxed.
I know that some members will think that that is a good idea while others will not. Whatever views there are, the committee supports the legislation enabling such a tax to be levied in Scotland.
In the same item of business
The Deputy Presiding Officer (Linda Fabiani)
SNP
The next item of business is a debate on motion S5M-05283, in the name of Derek Mackay, on the Air Departure Tax (Scotland) Bill at stage 1. 16:27
The Cabinet Secretary for Finance and the Constitution (Derek Mackay)
SNP
I am delighted to open the stage 1 debate on the Air Departure Tax (Scotland) Bill. The devolution of powers over air passenger duty to the Scottish Parliame...
James Kelly (Glasgow) (Lab)
Lab
Will the cabinet secretary take an intervention?
Derek Mackay
SNP
Of course, but after I make my point. In future years, tax bands and tax rate amounts will be set as part of the budget process, which is consistent with ex...
James Kelly
Lab
At what point in the process will the cabinet secretary outline the cuts that will have to be made to the Scottish budget to take account of the up to £189 m...
Derek Mackay
SNP
I am coming to the policy intention and I will engage with the wider community, Parliament, political parties and the sector to understand and outline our po...
Patrick Harvie (Glasgow) (Green)
Green
This is the central contradiction in the bill. The minister is now saying that he is going to conduct discussions with all the parties and economic analysis....
Derek Mackay
SNP
The Scottish Government has been clear. We support that position, and we have looked at the evidence. I have been asked to expand on the independent evidence...
Neil Findlay (Lothian) (Lab)
Lab
Will the minister take an intervention?
Derek Mackay
SNP
I will maybe take a further intervention after I have made some more progress. The assessment will report in the autumn, no later than when the Government s...
Mike Rumbles (North East Scotland) (LD)
LD
So far, the finance minister has not mentioned the fact that Transport Scotland has concluded that what has been proposed will mean 60,000 tonnes of carbon d...
Derek Mackay
SNP
In giving further detailed evidence to the Finance and Constitution Committee and others, the Government has made it clear that we will need to work harder i...
The Deputy Presiding Officer
SNP
I call Bruce Crawford to speak on behalf of the Finance and Constitution Committee. 16:40
Bruce Crawford (Stirling) (SNP)
SNP
It is my pleasure to speak as the convener of the Finance and Constitution Committee. I put on record my thanks to my fellow committee members for the constr...
Patrick Harvie
Green
I am sure that the committee convener would recognise that it would be a more accurate description of the situation to say “if no such bill were passed”. We ...
Bruce Crawford
SNP
I cannot deny that logic—there is no point having a fight about something that no one would disagree with. The committee made a wide range of recommendation...
Murdo Fraser (Mid Scotland and Fife) (Con)
Con
I echo the Finance and Constitution Committee convener’s thanks to everyone who gave evidence to the committee and to the committee clerks and the Scottish P...
Patrick Harvie
Green
On the face of it, I do not disagree with the basic description that Mr Fraser has given. However, can he recall any other situation in which a Government ha...
Murdo Fraser
Con
I appreciate that Mr Harvie will be unhappy this afternoon, as the proposals combine two things that he likes least in the world: aviation and tax cuts. It m...
Neil Findlay
Lab
Will Mr Fraser take an intervention?
Murdo Fraser
Con
I am going to make some progress. I will give way later if I have time. As Bruce Crawford pointed out, the bill does not stipulate the exemptions to the def...
The Deputy Presiding Officer
SNP
Come to a close, please.
Murdo Fraser
Con
Therefore, I believe that, for economic and environmental reasons, a cut in long-haul ADT as opposed to a cut across the board would make sense, but we accep...
Neil Bibby (West Scotland) (Lab)
Lab
Every party that is represented in the Parliament is a signatory to the Smith agreement. As all the previous speakers have said, a commitment was given as pa...
The Deputy Presiding Officer
SNP
You must close now, Mr Bibby.
Neil Bibby
Lab
Will the finance secretary listen to the majority? It is not often that the SNP does that. We will support the introduction of an air departure tax today, b...
The Deputy Presiding Officer
SNP
You must finish, Mr Bibby.
Neil Bibby
Lab
Let us use the Parliament’s powers to create a fair, proportionate and stable air departure tax regime.
The Deputy Presiding Officer
SNP
We move on to the open debate. We have no time in hand, so I ask for some self-discipline from speakers, please. 17:03
Maree Todd (Highlands and Islands) (SNP)
SNP
As of next year, the Scottish Parliament will set the rates for a new Scottish air departure tax. That presents the Government with an opportunity to design ...