7. Debate on Air Passenger Duty: The case for devolution

Part of the debate – in the Senedd at 4:33 pm on 2 July 2019.

Alert me about debates like this

Photo of Nick Ramsay Nick Ramsay Conservative 4:33, 2 July 2019

Can I thank the Minister for her comments? As you said, there is a fair amount of consensus across this Chamber for the devolution of this tax, and it's a discussion that has gone on for as long as I can remember being in this Chamber. You probably feel the same way. It clearly has risen up the agenda over recent months and years, with the devolution of the other pieces of the tax jigsaw in Wales, and there are now increasingly questions being asked with regard to if we can have income tax powers here and if we can have stamp duty and the other gamut of taxes, then why should there be a block placed on this one, if I can put it like that. 

The Welsh Conservatives are happy to co-submit this motion along with the Minister. Can I welcome the spirit with which you've brought the debate forward? This is, in essence, about keeping the spotlight on the devolution of the tax, first and foremost. Yes, of course, you only devolve taxes to either put them up, lower them, or keep them in the middle somewhere, but those are of course subsequent to actually having the power at all. So, if we haven't got the power yet, then those arguments are less relevant. I think the report of the Welsh Affairs Committee makes very interesting reading, and it's clear that the devolution of air passenger duty is overdue. I think it's refreshing and interesting to see a parliamentary committee from the other end of the M4, as we often describe it, well, first of all dealing with an issue like this, which is so relevant to our discussions in this Chamber, but also almost enthusiastically embracing the devolution of this tax, albeit with caveats as to some of the problems that could potentially arise from it.

As I said, air passenger duty would fit into the jigsaw of taxes that have been devolved—income tax, landfill disposal tax, stamp duty. This is a matter of parity, I believe. Scotland has this power, as we know, Northern Ireland has had the tax devolved to it, so it has become increasingly difficult to see why Wales shouldn't have similar devolution of tax here. There are, of course, arguments against it, and some of them are flimsy, others are worth looking at. They're well versed. We keep hearing of the threat to Bristol Airport; that comes up again and again when we have these discussions. I think that threat is probably overstated given that regional airports around the UK and Cardiff Airport in Wales do serve different populations, in the main. I know people travel fair distances to go on flights from airports, but I can't see why Bristol Airport would feel so threatened by this. And in any case, I don't believe that that should stand in the way of what is basically a political, philosophical—however you want to put it; constitutional—decision for this place, and the need for Wales to have this power.

Another argument that's been used against the devolution of APD is that the aviation industry is relatively undertaxed, and that airline fuel is not subject to tax, and tickets aren't subject to VAT in the same way. That may well be the case, but again, I can't see why that is an argument for or against the devolution of the tax. It should be for this assembly to decide what is relevant to Wales and the Welsh economy and air flights here, and this is where the power should lie.

My colleague Andrew R.T. Davies I think earlier mentioned the climate emergency, and that is something that needs to be considered. It did come up in the Finance Committee discussions. Clearly, there has been a lot of focus on air travel recently, as to its role, and it clearly does contribute massively to the carbon footprint, so I think individuals and governments do need to be aware of that. I would say, as I said before, though, that this isn't necessarily an argument against devolving it—it's for the decisions here to be taken. I would also say that I don't really see it as—. I don't think people are suddenly going to jump on planes that weren't going to jump on planes before. I think they're probably going to go to—. It might make a marginal difference. They're going to go to Cardiff Airport instead of elsewhere, whether that be across the border to Luton or Heathrow or wherever it might be. But first and foremost, that airport has to be successful for those decisions to be faced further down the line.

So, Welsh Conservatives are more than happy to support this motion—indeed, co-submit this motion along with other parties here—and I hope that we can finally settle this once and for all and get this important level of taxation devolved to Wales.