Chamber
Meeting of the Parliament 05 October 2017
05 Oct 2017 · S5 · Meeting of the Parliament
Item of business
Air Departure Tax (Update)
I can imagine what those champions of transparency, the Liberal Democrats, would have said if I had kept secret from Parliament the complications, the lack of compliance and the reason why we could not pursue the like-for-like exemption. The Parliament has to be fair; I raised the matter at stage 1, I raised it in committee and I raised it when being pursued by Conservatives as to why the exemptions were not in the bill.
I have been transparent with Parliament. It is important to tell the truth to Parliament about the condition of legislation, the arrangements around the Smith commission, the no-detriment principle and what the bill would mean to the very important region that is the Highlands and Islands. That would be sacrificed if we did not address the issue in the correct way. I have kept Parliament up to speed and been transparent, and I have engaged with the UK Government to try to find a solution. However, it is for the UK Government to resolve the issue.
Of course, being so transparent creates a risk in how the EU could respond to the issue, but the request from the UK Government was that the Scottish people should take the risk of the UK Government’s lack of compliance over the years. The UK Government should bear that burden when resolving the issue, so that we can deliver the powers in a competent fashion that protects every part of Scotland.
In the same item of business
The Presiding Officer (Ken Macintosh)
NPA
The first item of business this afternoon is a statement by Derek Mackay on the air departure tax update.
James Kelly (Glasgow) (Lab)
Lab
On a point order, Presiding Officer. The cabinet secretary is about to give a statement on air departure tax, but the details of the statement are revealed e...
The Presiding Officer
NPA
Thank you for that point of order, Mr Kelly, and for notifying me in advance of your intention to make it. As members are aware, I take the issue very serio...
The Cabinet Secretary for Finance and the Constitution (Derek Mackay)
SNP
Thank you, Presiding Officer. The Scottish Government has made a strong case over many years for powers over air passenger taxation to be devolved to the Sc...
The Presiding Officer
NPA
The cabinet secretary will now take questions on his statement for about 20 minutes. I urge members who wish to ask a question to press their request-to-spea...
Murdo Fraser (Mid Scotland and Fife) (Con)
Con
I thank the cabinet secretary for advance sight of his statement. The Scottish Government’s policy of reducing air departure tax is a long-standing one, and ...
Derek Mackay
SNP
Of all the bizarre accusations that Murdo Fraser has made about the Scottish Government, that—accusing the UK Government of conspiring with the Scottish Gove...
James Kelly
Lab
You brought forward the legislation.
Derek Mackay
SNP
Well, Labour is partly complicit, too—its activity probably was not compliant, either. I am surprised that a member of Murdo Fraser’s standing is not aware ...
Neil Bibby (West Scotland) (Lab)
Lab
For years, passengers in the Highlands and Islands have received an exemption, and that must continue. The devolution of APD was agreed by the Smith commissi...
Derek Mackay
SNP
The most important point in that commentary or question was in the first sentence, when Neil Bibby stated that the exemption must continue. The exemption as ...
Patrick Harvie (Glasgow) (Green)
Green
The policy has not exactly had the smoothest of take-offs, has it? Under scrutiny, it has been clear that the Government has not even bothered building an ec...
Derek Mackay
SNP
In accordance with my statement, the timetable for what we can do is in the hands of the UK Government, which must consider the proposition that I have put t...
Willie Rennie (North East Fife) (LD)
LD
The Liberal Democrats are pleased that the APD cuts have been stopped. Does the cabinet secretary think that today’s statement will force the European Commis...
Derek Mackay
SNP
I can imagine what those champions of transparency, the Liberal Democrats, would have said if I had kept secret from Parliament the complications, the lack o...
The Presiding Officer
NPA
I gave some time for the opening questions and answers to explore the issue. We now have less than nine minutes for 10 questioners, so I ask for progress, pl...
Maree Todd (Highlands and Islands) (SNP)
SNP
The cabinet secretary mentioned that state-aid solutions would not apply to Inverness airport. The UK Government stated that it would consider alternatives, ...
Derek Mackay
SNP
In outlining this statement, the Scottish Government is clearly not sacrificing the Highlands and Islands and I encourage the UK Government not to do so either.
Bill Bowman (North East Scotland) (Con)
Con
Has the cabinet secretary considered devolving the tax to Highland Council, in which case the exemption would not come under state-aid rules? If so, why has ...
Derek Mackay
SNP
That approach has not been put to us in a state that would appear to comply with state-aid regulations and EU law. As with many other matters, we could consi...
Kate Forbes (Skye, Lochaber and Badenoch) (SNP)
SNP
Will the cabinet secretary provide an unequivocal assurance to the communities of the Highlands and Islands, who are most affected by this, that he will cont...
Derek Mackay
SNP
Yes, I will provide that assurance, and I hope that the statement makes clear that that is exactly what I am endeavouring to do.
James Kelly
Lab
Does the cabinet secretary accept that, week after week, we hear in the chamber from members who have issues with cuts in the health service, education servi...
Derek Mackay
SNP
I am sure that, having seen my statement and realised that it was not quite what he had read about in the press—which probably removes the need for his compl...
Richard Lyle (Uddingston and Bellshill) (SNP)
SNP
Does the cabinet secretary agree that it is an absurd situation that the UK Government can effectively block the implementation of Scottish Government policy...
Derek Mackay
SNP
It is true to say that the UK Government will not go through the notification procedure unless the Scottish Government bears the risks of doing so. That mean...
Rachael Hamilton (Ettrick, Roxburgh and Berwickshire) (Con)
Con
I draw members’ attention to my entry in the register of members’ interests. What will the cost of the cabinet secretary’s U-turn on air departure tax be to...
Derek Mackay
SNP
Of course, it was the Tories who did a U-turn on tax reduction. Let me be clear to Rachael Hamilton and others. We are trying to proceed, but we need the UK...
Ivan McKee (Glasgow Provan) (SNP)
SNP
Does the cabinet secretary have any information on why the UK Government failed to notify the European Commission of the exemption for 16 years? Was there no...
Derek Mackay
SNP
Members will be able to tell from my statement and from the correspondence that I have had with the UK Government that it is very reluctant to seek notificat...