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Finance (No. 2) Bill

I knew that the reference by my right hon. Friend the Member for West Dunbartonshire (Mr. McFall) to his Committee’s report would encourage others to trawl in the report. I am not surprised that the hon. Member for Shipley (Philip Davies) picked a headline from the report—the reference to air passenger duty. In due course, as I explained to my right hon. Friend, the Government will respond in the normal way to the report, dealing with matters in some detail. As for the cost of air transport, as the hon. Gentleman will know, a number of airlines have introduced fuel surcharges. For example, British Airways charges £8 for flights in Europe, which is equivalent to a 60 per cent. increase in air passenger duty. British Airways charges £35 for non-European flights. These charges have not had an appreciable impact on demand. The Government keep all these matters under strict review. Standing at the Dispatch Box within hours of the report having been published, having had the opportunity of going through it only once, I do not accept that what is in the report is necessarily the proper interpretation of the evidence that the Select Committee heard. There is still room for the Government’s response to the report, as the hon. Gentleman would expect. It is correct that air passenger duty was frozen in the Budget, and has been frozen every year since 2001. Decisions need to be considered in the context of wider social and economic factors, such as the current volatile oil market and the experience of surcharges in relation to that volatile market that we have recently seen. The Government believe that the most effective approach to addressing the international challenge of aviation emissions is through a trading scheme. That is the Government’s current view, and it has been in the public domain. The Government are continuing to press for the inclusion of aviation in the EU emissions trading scheme as soon as possible after agreement. The hon. Gentleman will have to wait further for a more detailed and comprehensive response to the Select Committee’s helpful report. The Government’s approach to environmental matters has been welcomed by environmental organisations such as Greenpeace. The Green Alliance said that my right hon. Friend the Chancellor of the Exchequer"““has set the right direction of travel on climate change””." However, as the Chancellor has made clear, we need strong leadership to take the tough decisions required to tackle climate change.