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

Part of the debate – in the Senedd at 4:52 pm on 2 July 2019.

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Photo of Andrew RT Davies Andrew RT Davies Conservative 4:52, 2 July 2019

I'm sure that you have better access to the Member for Cardiff Airport than maybe I do these days. [Laughter.] So I'll leave you to pose that question, and maybe you'll listen to the answer. 

But, generally, this is a tool that can come into the hands of this Assembly and, by extension, to the Welsh Government, that can drive opportunity. I personally would like to see what the First Minister said, it becoming a reality and being abolished. I make no bones about that, because that's what the First Minister said: if it did come to the Welsh Government, they certainly would look to get rid of it. It would have a cost on long-haul flights of about £1 million, and I appreciate the figure that's been talked about is £10 million in total. It is worth reflecting on the Silk commission's recommendation that it was related to long-haul flights and not short-haul flights. And that was the Silk commission's recommendation. So there is a difference there, hence I would suggest the modest tax income loss that the Welsh Government might face if it did do away with it for long-haul flights, if that power came to it, but I would say that that would be multiplied several times over by the increased volume of passengers coming into Cardiff, especially international passengers, and the spend that they would have within the Welsh economy.

Interestingly, as we go forward, if it was to be devolved in its entirety on short haul as well—there is much talk about electric engines and the development of electric engines on short-haul flights in particular—that would be at the discretion of the Government, whoever controls that power at that time, whether you would want to incentivise that technology for short-haul flights. I think that's an interesting debate and discussion to have, because it is fair to point out that there's an environmental consequence for people who fly—I accept that—but as someone who believes that flying is an economic good and it links people to communities the length and breadth of the globe, I'd like to see flying become as cheap as possible, not as expensive as possible. I do see it as a tool of empowerment.

But I do regret bitterly that we have not enacted the Silk commission's recommendation and, indeed, the recommendation of the Holtham commission from 10 years ago, and I reiterate it and it is worth reiterating: there is not a coherent argument to stop air passenger duty being devolved to the National Assembly. I can argue with the Welsh Labour Government—as I do week in, week out—about some of the policy decisions they've taken, but it's called democracy, and people cast their vote accordingly and they either endorse the politicians to take those decisions or they don't as such. So, to actually say that we don't trust the policy decisions that are going to be taken isn't a good enough and sound enough reason to stop this tax being devolved.

So, it is a pleasing sight I hope—I haven't seen the buttons pressed here tonight—but hopefully by the end of the night we will have a thumping big vote to endorse this motion tonight that's before us. And I do hope that with the change of leadership that will come in the Conservative Party and the new Prime Minister that this particular unfinished piece of business will gain new impetus, and it will not be long before that economic lever is transferred here to Wales, and then we can have the real discussion on the policy. But as I said, I clearly want to put my flag to the mast of what the previous First Minister argued very comprehensively that it should be used to lower air passenger duty, so that people get better options and opportunities of flights out of Cardiff Airport.

But again, I would seek clarification, because I hear what the finance Minister has said about, on the one hand you've got the environmental argument, on the other hand you've got the economic argument, and you say that these tests have to be put to the future generations commissioner, the legislation and all the rest of it—the future generations Act. You can do that now so that the case and the argument and the policy can be understood and gain wider support outside of this Chamber. And, as I said, from my understanding, certainly the previous First Minister was very clear that he wanted to get rid of air passenger duty, especially on long-haul flights. I would be grateful if you could, in your summing up, commit to that particular policy that was the policy of the Welsh Government under the previous First Minister, and I'd like to understand whether it's a continuation of that policy for this current Government.