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

Part of the debate – in the Senedd at 4:58 pm on 2 July 2019.

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Photo of David Rowlands David Rowlands UKIP 4:58, 2 July 2019

It is indeed gratifying to note the recommendations in the Welsh Affairs Select Committee report, because there is no doubt that if air passenger duty were to be devolved, and the Welsh Government were to use this opportunity to reduce or better still abolish APD, it would unlock the true potential of Cardiff Airport by considerably enhancing the Welsh Government's ability to attract new airlines, and thus potentially facilitating a large increase in passenger numbers using the airport.

APD was devolved to Northern Ireland for direct long-haul flights through the UK Finance Act 2012, whilst the Scotland Act 2016 made provision for the full devolution of APD to Scotland. Since then, the Welsh Government has argued that there is no justification for being treated differently to Scotland and Northern Ireland, and we on this bench fully endorse that stance. 

The problem for Wales has been the UK's stance with regard to protecting the status of Bristol airport. This argument no longer stands, as Bristol's operations have hugely expanded over recent years, dwarfing those of Cardiff. We only have to look over the Severn to the M49 corridor to see the wider impact expanded airport usage can have on the economy. A completely new interchange is being constructed to make access to a large business park, which is expected to provide thousands of local jobs. As set out in the Welsh economic action plan, enhancing the connectivity of Wales with the rest of the UK and internationally is key to the development of Wales' economy. 

As long ago as 2014, as referred to by Andrew R.T. Davies, the Silk report also recommended that APD should be devolved for direct long-haul flights initially. But although Andrew R.T. Davies said that they didn't say about standard flights, they did actually say that

'devolving all rates of APD to Wales should be part of the UK Government’s future work on aviation taxation'.

Now, given that the Silk report was five years ago, I think it has now come time for full devolution to take place. We in Brexit fully endorse the recommendations in the report and call upon the UK Government to devolve these powers as soon as practicable. But I have to say that we support this APD on the basis that the Welsh Government will use it to actually take away or reduce it considerably, because that is what this will do to the Welsh economy, and that's the whole idea of this being devolved to the Welsh Government.