19/10/2012
Air Passenger Duty Cuts Unlikely
The head of British Airways has said he has little hope of Air Passenger Duty being scrapped on short haul flights from Northern Ireland.
He told the BBC: "It's better, I think, if the whole tax was scrapped rather than adjustments made on an ad hoc basis like we've seen in Northern Ireland for long-haul flights.
"It does put us at a disadvantage compared to the carriers that are operating directly from Belfast, because if you're flying from Belfast over Heathrow you're still paying the high levels of taxation."
Currently the Assembly is processing legislation to cut duty on long-haul flights.
But Mr Walsh has said he cannot see Westminster getting rid of the £13 tax paid by passengers on short-haul flights.
According to the BA head, the short haul tax was damaging the economy and should be removed.
The news follows Finance Minister Sammy Wilson’s announcement this week that he would like to see the Air Passenger Duty on short-haul flights cut.
Minister Wilson did say the cut could cost Northern Ireland too much in terms of what would be lost from the block grant, which is the money Stormont receives from the UK Treasury.
He told BBC Northern Ireland: "We don't have the power to cut it - the only power that has been devolved to us is the power for direct long-haul flights.
"Even if we did have the powers, we would have to ask the question whether or not the £60m this would cost us, rising to £90m, would be better spent on other developments."
(IT)
He told the BBC: "It's better, I think, if the whole tax was scrapped rather than adjustments made on an ad hoc basis like we've seen in Northern Ireland for long-haul flights.
"It does put us at a disadvantage compared to the carriers that are operating directly from Belfast, because if you're flying from Belfast over Heathrow you're still paying the high levels of taxation."
Currently the Assembly is processing legislation to cut duty on long-haul flights.
But Mr Walsh has said he cannot see Westminster getting rid of the £13 tax paid by passengers on short-haul flights.
According to the BA head, the short haul tax was damaging the economy and should be removed.
The news follows Finance Minister Sammy Wilson’s announcement this week that he would like to see the Air Passenger Duty on short-haul flights cut.
Minister Wilson did say the cut could cost Northern Ireland too much in terms of what would be lost from the block grant, which is the money Stormont receives from the UK Treasury.
He told BBC Northern Ireland: "We don't have the power to cut it - the only power that has been devolved to us is the power for direct long-haul flights.
"Even if we did have the powers, we would have to ask the question whether or not the £60m this would cost us, rising to £90m, would be better spent on other developments."
(IT)
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Northern Ireland WeatherToday:A sunny but frosty start for many. However cloud increases by midday with a few showers reaching the north coast, these mostly light but spreading inland this afternoon. Chilly. Maximum temperature 8 °C.Tonight:A rather cloudy evening with scattered showers. Becoming drier through the night with some good clear spells developing and a patchy frost away from coasts. Minimum temperature 0 °C.