MPs back scrapping of NI air tax

A report from the influential group of MPs on Friday warned that if the current air tax rate is not urgently addressed, there will be "deeply troubling" implications for the region.

The tax is much higher north of the border, which the body said is dissuading airlines from using Northern Ireland's airports, ultimately damaging the economy.

The NIAC report stated: "By abolishing the tax, Northern Ireland's business, enterprise and tourist industry stands a chance of bring able to compete with the Republic, which is due to abolish its already low rate of air passenger duty (APD)."

If the recommendations are put into effect, the saving on each return trip would be £24 per person or almost £100 for a family of four.

Welcoming the report, the Consumer Council are now calling on the Treasury to take action.

"Consumers and businesses in NI are hit hard with the high levels of APD," Antoinette McKeown from the consumer watchdog said.

"Today's announcement means that the focus must be to ensure APD is removed as a matter of urgency to encourage a choice of routes for NI passengers as well as investment and tourism.

"The NI Affairs Committee has highlighted its recommended course of action. It is now the responsibility of Treasury to recognise the urgency of this issue as stated in the Committee's report and to instigate the change for the benefit of NI consumers.

"We will continue to work on behalf of NI consumers to ensure a swift and positive response."

Continental Airlines has already warned that Northern Ireland's only transatlantic air route could be axed in less than a year if action was not taken to cut passenger duty.

The report highlighted that the Committee was not convinced of the viability of devolving the power to set Air Passenger Duty.

That say that may be reconsidered if corporation tax to the region is devolved and its impact assessed.

Brian Ambrose, chief executive of George Best Belfast City Airport, said: "We welcome the findings of this timely and important report and hope that Government give it serious consideration."

While a spokesman for Belfast International Airport said: "All we want is a level playing field to eliminate unfairness and disadvantage - no more, no less.

"We need urgent action to address the disparity between Air Passenger Duty in Northern Ireland and the Republic of Ireland if we are to grow the sector."

A Treasury spokesman welcomed the report, but did not give any hint as to what their response will be.

"The Government recognises the unique position of Northern Ireland, given its land border with the Republic of Ireland, and welcomes the report by the Northern Ireland Affairs Committee.

"Further discussions are planned, and the Government will provide a response to the consultation in the autumn."