Oral question asked in the House of Commons, by Jim Shannon (Democratic Unionist Party). It was answered on Tuesday, 1 November 2011 on behalf of the Northern Ireland Grand Committee.

Air Passenger Duty

Question: I thank the Minister for his reply. We all welcome the fact that air passenger duty has been decreased, but I understand that that reduction will be of £60 for an economy ticket and of £120 for a business class ticket. When will consumers see any reduction—in other words, will they see a reduction in their ticket price? Will the Minister discuss that with the Northern Ireland Minister who has responsibility for that matter?

Answer: I am grateful to the hon. Gentleman for his thanks for our getting the reduction through. To clarify, the direct long-haul rate of APD will fall to the lower short-haul rate, which is currently £12 per passenger in economy and £24 per passenger in business and first class. As the hon. Gentleman will know, how the matter will actually be devolved is still under consideration, but the savings to passengers should flow through straight away. Critically, by making the reduction, we have saved the only transatlantic route that we currently have, which I have called the economic umbilical cord to the United States. Collectively, all of us with Northern Ireland’s interests at heart should now be drawing the new rate to the attention of airlines that might wish to invest in that route.

Secondary information