The devolution of Air Passenger Duty through the Air Departure Tax (Scotland) Bill is an opportunity for Scotland to reach out to the world, Lothian Conservative MSP Gordon Lindhurst has said.
Gordon Lindhurst was speaking in the stage 3 debate as the Scottish Parliament voted in favour of the Bill, which will give the Scottish Government powers over tax rates and bands on flights leaving Scotland.
He said that the government now has economic tools at its disposal to facilitate growth in the Scottish economy, including by making the tax in Scotland more competitive than it currently is. The UK currently has amongst the highest tax rates in the world.
Lindhurst went on to explain that the ability to lower levels of tax, in particular on fares for long-haul flights, will encourage carriers to adopt new air links from Scotland to global destinations. Not only will this incentivise tourists to come to Scotland, it will also allow Scottish people and businesses to travel more easily and cheaply from Scotland and foster deeper relationships with countries across the globe.
Speaking during the debate, Lindhurst said:
“We have an opportunity here to take a different approach; to take Scotland on a path which will ensure we have a competitive tax rate that will encourage airliners, businesses and tourists to come to Scotland.
As well as making it cheaper for our own businesses and people to build those deeper relationships with the rest of the world as they go.”
He finished his speech by referring to some of the environmental concerns that have been voiced about the policy, and spoke of the Scottish Conservative policy to address this. He went on:
“It is also a policy that would ensure consumers continue to have a choice as to how to travel within the UK and Europe, by freezing rates for short haul flights. This benefits the consumer who chooses to fly domestically and to the continent over other forms of travel, but it does not dramatically reduce the cost of air travel so as to result in a dramatic shift in consumer behaviour, to the detriment of the environment.”