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9 December 2014

Helping Tourism?

Within the past month the Smith Commission, set up in the aftermath of the referendum, has delivered its proposals for a more devolved Scotland.

One of the recommendations which supports years of campaigning is the potential devolution of Air Passenger Duty (APD). The present Scottish Government is committing to abolishing APD if it is devolved.

This tax has long put Scotland at a disadvantage, and hindered the country’s tourism industry, which would be boosted by the devolution of the tax and its subsequent eradication.

The tax which began its life as something relatively small in 1994 (when first introduced, passengers paid £5 for a short haul flight and double that for long haul) has sky rocketed, with up to £194 APD being paid on long haul flights.

Other European countries have already abolished APD which means that those flying in the UK are paying one of the highest departure taxes in the world, and it is not proving beneficial.

Research published by PricewaterhouseCoopers (PwC) found that significantly reducing or abolishing APD would result in a significant increase in the UK’s Gross Domestic Product, and would lead to the creation of tens of thousands of new jobs across a broad range of sectors.

Abolishing APD would pay for itself through the tourist and business industries, and would stimulate growth in the Scottish economy.

In support of this move was a joint submission to the Smith Commission by Scotland’s three main airports – Glasgow, Edinburgh and Aberdeen - who all see APD as a significant barrier to growth and damaging to tourism. They also stated that there were around 2 million less passengers travelling to Scotland every year due to the tax.

So this proposal is good news. But it’s also not the end of the story. These proposals must be agreed by Westminster before they filter down to the Scottish Parliament and are voted on.

And we must not be complacent about the powers that we are given so that we lose sight of those that are still held by Westminster’s iron fist. The recommendations that have been drafted by Lord Smith fall well short of the commitments made over the referendum campaign, and well below the proposals made by the Scottish Government. This is not the home rule that was pledged to the people of Scotland.

But it is important to note that the Scottish Government has pledged to use any new powers that are delivered to the Scottish Parliament to create a fairer society for everyone living in Scotland. So it is now vital that Westminster delivers on the full package of powers recommended by the Smith Commission so that we can do just that.

In next year’s General Election, the population will again have their say on how well they feel Scotland has fared with regards to the Smith Commission and its outcomes. Hopefully the devolution of Airport Passenger Duty will be one of the recommendations that will be followed through so that Scotland can benefit for years to come. If not, make your vote count.

Stewart Stevenson
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