Meeting of the Parliament 03 June 2014
A request from me for clarity from the Liberal Democrats evokes a response asking for clarity about a childcare policy. Perhaps Alison McInnes could use her own time to answer the question that I asked rather than avoiding it in the way that she did.
The Labour Party position changed dramatically between April 2013 and March 2014. Originally, Labour proposed to support the devolution of APD, but that has changed in its latest devolution proposals. I do not know what the rationale for that is, but perhaps we can have some clarity on that in the debate.
Those who are not in favour of control of APD coming to Scotland are swimming against the tide. We have laid out the reasons why it is important that Scotland should have control over the tax. The York Aviation study and other studies have estimated the costs to Scotland at around £200 million per year at 2014 levels.
We know that people in South America and North America consider APD. I have been given the example of flights from Mexico. Entire planeloads of people decide to go to Paris or other European capitals rather than come to the UK and Scotland and they cite two reasons: APD and visa controls. That involves real cost because, had those people come to Scotland, they would have spent money in our shops, hotels and restaurants to the benefit of our people. That is no longer happening.
The York Aviation study mentioned a loss of £2 billion to the UK. That is a huge figure and a huge loss. We can boost jobs and the economy and cut back on some of the expensive connecting flights that we currently have to have by having more direct flights. For that reason, I am happy to move the motion.
I move,
That the Parliament notes with concern the continuing prevarication of the UK Government in devolving control of air passenger duty (APD) despite the clear recommendation of the Calman Commission on Scottish Devolution in 2009, evidence of the damaging impact of the significant increases in APD since 2007 and the growing campaign for control for it to be devolved; further notes the APD changes that were announced in the 2014 UK Budget, which, from April 2015, will amend the existing four-band system and, as a consequence, reduce duty paid on journeys of more than 4,000 miles; further notes that, based on the international destinations currently served from Scotland’s airports, this will be of minimal immediate value to Scotland; believes that improving Scotland’s international air connectivity and the ability of its aviation sector to properly compete with global competitors is a matter that needs to be urgently addressed; considers that this would be assisted by control of APD being devolved, and believes that, in the event of a Yes vote in the independence referendum, the UK Government should devolve this as a matter of priority in order to enable the Scottish Government to progress the proposals contained in Scotland’s Future: Your Guide to an Independent Scotland to reduce APD by 50% in the first term of an independent Scottish Parliament and to seek to abolish it when public finances allow.