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Chamber

Meeting of the Parliament 05 October 2017

05 Oct 2017 · S5 · Meeting of the Parliament
Item of business
Air Departure Tax (Update)
Mackay, Derek SNP Renfrewshire North and West Watch on SPTV

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 that the Scottish Parliament cannot pass acts or orders that contravene EU law and regulations. I am so surprised that Murdo Fraser, as a front-bench spokesperson, does not know that simple fact about the function and operation of this Parliament and the parameters in which we have to operate.

On the question about principle, SNP policy—Government policy—remains the same, but what we have been asked to do—[Interruption.] I am surprised to hear heckling from the Labour Party. I know that many Labour members with an interest in the Highlands and Islands want us to protect that region as we deliver air departure tax. I am surprised by the Labour Party’s opposition on the issue.

We have said that the power is in a defective state and that we will co-operate with the UK Government to resolve the issue, but it is for the UK Government to resolve. It, not the Scottish Government, created the potential non-compliance issue. We believe in the outcome of the Smith commission—the principle of there being no detriment to the people of Scotland—and we are trying to protect that.

Protecting the Highlands and Islands also includes ensuring that there is a like-for-like exemption and that we protect the devolution of powers, but in a competent fashion and not in the typical bombastic, chaotic and incompetent fashion that the Tories have followed recently.

We will try to find a resolution. The principle remains the same, but it must be implemented competently.

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...