BRISTOL - 4

[bcn_boy]

Originally Posted by MerchantVenturer

A Bristol Labour MP supported Bristol Airport this week in a Commons debate on regional airports. She was concerned at the effect that a re-distribution of passengers brought about by the devolution of air passenger duty powers to the Welsh Government would have on both the airport’s fortunes and the economy of the region.

She quoted previous figures that the BRS management had projected which suggest that the airport could lose up to a third of its routes and 25% of its passenger numbers if apd was devolved to Wales.

She also called for ‘greater certainty’ for regional airports and said that the government should make decisions on apd and the Heathrow runway issue (this would have a bearing on the West Country where already six million passengers from the South West use London airports each year).

Aviation minister Robert Goodwill apparently told the MP that he did not have time to address the concerns around the airport tax charges.

In some ways I see mixed messages emanating from BRS. They’ve quoted the projected loss of routes and passenger numbers yet at the same time the airport owner (Ontario Teachers’ Pension Fund) is spending tens of millions of pounds on infrastructure improvements. By the time the current round of amelioration is complete by the end of this year around £100 million will have been spent since 2010, with at least another £50 million in the decade before that expended by the previous owners. For an airport of Bristol’s size this is a very large investment and could suggest that the owner either believes that apd will not be devolved to Wales or, if it is, the effects may not be as serious as previously stated.

From remarks in the media by politicians and commentators I’m gaining the impression that complete apd devotion to Wales may not be a runner at the moment (a story appeared in one of the Sunday papers -Sunday Times? - a couple of months ago reporting that apd devolution to Wales was running into difficulties at UK government level) but that long haul apd devolution is now what is being talked about more and more.

The Silk Commission recommended that long haul apd powers be devolved to Wales in the first instance. Those supporting this line point out that it would not affect any of Bristol’s existing routes because there aren’t any. That’s true but it would almost certainly scupper any chance of the airport gaining some in the foreseeable future.

Furthermore, it ignores the tens of thousands of passengers who fly long haul from BRS via the hubs at AMS, BRU, FRA, MUC and DUB who pay the full UK long haul apd rate.

I think what is needed now is an early decision one way or the other on devolution of apd powers to Wales. If the decision goes ‘against’ BRS at least the owner and management will know where they stand and can act accordingly.

You do not pay the uk long haul apd if you fly via a hub airport in another country. If you fly via AMS long haul you only pay UK short haul apd. The long haul apd is paid to the Dutch.