What an appalling statement (in my opinion). APD is an unfair tax on everyone. It's an Island with a land border to another Island without APD. Consider this, imagine the opportunities that NI could create given a level playing field with our land neighbours. Again, in my opinion, the NI assembly would be better served protecting the infrastructure of NI. Continuing to implement APD only promotes Dublin further.
Europe is full of land borders, so what is the point. Taxes if NI/ROI are all different and some better benefit NI and ROI.
As for creating opportunities thy didn't manage many before the crash so why is it different now.
How about this? Just might be a little radical for the NI officials who are the guardians of the "rules"!??
Dublin Airport now takes almost a million passengers a year booking in NI/UK jurisdiction because, as much as anything, they are actively exploiting zero tax in RoI v the air tax being charged in NI.
And it took 6 or 700,000 before the APD was introduced as well, DUB has always and will always take passengers from NI and APD has nothing to do with it.
I don't see NI complaining with the passengers they receive from the NW.
Alongside that there are about 3.5 million passengers departing from the three NI airports (about 7 million airport passengers overall), and there is no tax on the small existing proportion of long haul travellers.
So for the sake of simplicity the APD take from NI bookings is about 3.5 million times £13 - around £45 million per annum.
2 way tax....
So, why not simply take control of the air tax in Belfast, and tax-raising powers related to it, and charge a tax of £45 - £50 for all bookings taken in NI for passengers departing from RoI airports, and use the funds raised from this to wipe out the equivalent financial loss to the NI Executive which would be incurred while reducing APD on all passengers departing from the NI airports to zero?
Because that is illegal
Hey presto, existing and new services from the airports in NI become stronger and more sustainable, more jobs in NI, substantially more spend from tourists and visitors coming into NI and the rising tide lifts the NI economy, simply by turning the table around to a different angle.
DUB carries the majority of tourists into NI and has done before the tax.
If the current loss of business from NI to RoI was occurring t*he other way round, this would have been a guaranteed move long ages before now.
Well only people form NI can change politics not people in the Republic. Tactful voting would go a long way and not voting for pro Irish or pro British parties.
It's a little like transferring Corporation Tax to compete with ROI not going to work as the ROI have the better competitive edge and the only losers will be people as cuts will be made to reduce it.
You are underestimating the need to cut APD in my opinion. But I agree about wider economic reform. Business is driven by competition so if it were scrapped it isn't just routes that would improve, it would be take up of existing services including freight etc. that will come from business startup or expansion. The revenue from the actual air tax lost would be more than replaced by business taxes and income taxes from new jobs created. It might not be simple or short term but exponentially more beneficial in terms of the whole population.
I can see all those routes to Southern Europe deliver such revenue to NI
The simple fact is lower APD will not lead to lower air fares (as seen at DUB) however scrapping the tax ex DUB has delivered major benefits which include increased inbound passengers who I am sure will visit NI. Scrapping it from Belfast will only fill the pockets of Easyjet and Jet 2 taking people off on holiday.
The changes at DUB would off set the majority of APD costs anyway.
However, apart from retaining United as our scheduled route hitherto (yes I know VS are coming for a few months),what tangible benefits has the acting of this tax brought? Have we seen lower fares? Have we seen significant growth in passenger numbers....?
Sums it up well
The question is would United really withdraw ? And with a permanent abolition would we see new services ex Belfast ?
Never a full withdraw but I suspect a seasonal operation and I even believe that may happen anyway. They would have to consider the possibility of DL or AA moving in had they left and I expect that's why they wouldn't.