MPs call for abolition of air tax in Northern Ireland
MPs have called today for air passenger duty to be abolished on most flights out of Northern Ireland to prevent the loss of services.
The Northern Ireland Affairs Committee has recommended the Treasury axe the tax on short and medium-haul flights from the region, including flights to the US.
It says that if the tax remains in place, Continental Airlines' flight from Belfast to Newark, US could be axed 'within a year or so'.
MPs say that Northern Ireland should be treated as a special case as it is competing for air services with the Republic of Ireland where taxes are just €3 per person. Passengers are able to avoid APD by flying from Dublin instead.
"Why travel from Belfast International when you could take the short journey to Dublin and pay £60 per person less for your ticket?" asked the MPs in their report presented today.
The MPs said the opportunities to expand Northern Ireland's economy through exports and tourism are being threatened by APD. "We recognise that for many people in Northern Ireland travelling by air is not a luxury, but it is an essential element of family and economic life," said the committee.
However, it said it accepts the Treasury will not remove APD on all UK flights “in the near future”. It has also come out against devolving responsibility for APD to the Northern Ireland government for the time being as this would take too long.
EasyJet welcomed the committee's report. “Northern Ireland’s geographic position throws into stark relief the impact of APD on the economy,” said director Paul Simmons.
ABTA has also recommended to the government that Northern Ireland be treated as a special case.
However ABTA said the revenue lost by abolishing APD in Northern Ireland should not be replaced by raising revenue in other parts of the UK.
Doreen McKenzie, owner of Knock Travel and ABTA NI spokesperson said: "This recommendation by the Northern Ireland Affairs Committee is an important first step in getting the Government to see just how damaging APD is to the travel industry and wider economy in Northern Ireland.
"Unlike other parts of the UK, our customers have the option of avoiding the heavy cost of APD by simply making a short car journey over the border and many are doing precisely that."
ABTA head of public affairs Luke Pollard said: "The Northern Ireland Affairs Committee and ABTA's recommendation to abolish Air Passenger Duty is essential to prevent further damage to the economy of the province.
"Northern Ireland clearly represents a special case from the rest of the United Kingdom because of the shared land border."
By Linsey McNeill
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