Air Passenger Duty

Debate between Jim Shannon and Lord Dodds of Duncairn

Tuesday 10th July 2018 Westminster Hall

[Jim Shannon]

My hon. Friend always brings intelligent thought to his interventions. I confess that Dublin gives me easy access to the States every year. It is the airport that my family and I use whenever we go on holiday. One of the reasons why we do that is the customs connection. We do our customs clearance in Dublin, and when we get to the far side, we get off the plane, get our baggage, and we are away. With great respect, if we go from Heathrow to New York, we spend an hour in the long customs clearance line.

[Nigel Dodds]

My hon. Friend points to an important factor, but it has been proved that the single biggest factor that causes people to travel through Dublin airport is price. One fifth of all visitors to Northern Ireland use Dublin airport. The trouble is that many people who arrive at Dublin airport from the States and elsewhere do not, unfortunately, leave the greater Dublin vicinity or southern Ireland. They do not come north; that is the reality. Price is the crucial point. My hon. Friend refers to another important aspect, but air passenger duty means that he and many of my constituents are being directed—almost shown the road—to Dublin airport.

[Jim Shannon]

My right hon. Friend clearly states the real issue, which is price. He is absolutely right. I was just saying that one of the other advantages is customs clearance, which probably suits many, but the thing that puts people there first is price. Customs clearance is an incentive but an extra which makes things a wee bit easier. My right hon. Friend is also right about Tourism Ireland needing to ask how better to connect passengers who come into Dublin airport so that they do not stay in Dublin but go north. To be fair, Tourism Ireland does things well when I go every year to the Milwaukee Irish Fest in Wisconsin, but we can and should be doing a lot more. My right hon. Friend is absolutely right about that. First and foremost, people are attracted by price. That can be applied to many facets of life, such as shopping trends or changing shopping practices.

According to a report published by Airports Council International, this year the UK was the only European nation to see a decline in its direct connectivity. That is worrying. If that is happening and a trend shows that, we need to do something positive and constructive about it right away. The reason for our focus on APD is that we believe in Northern Ireland’s ability to compete with the rest of the UK, and any area, to attract and secure global business. Belfast has clearly become the cyber-security capital of the UK and has the potential to do even more than it has so far. Why is that? Look at the reasons to learn how important it is for us to have the APD issue addressed, which would be of advantage to other parts of the UK as well.

In Belfast and other cities in Northern Ireland, global tech names such as Citi or Allstate work in the sector with silicon valley firms such as BDNA, and they are all recognisable. Not only does our highly skilled workforce attract global investment, but our indigenous tech firms such as Kainos, Novosco and First Derivatives grow in size and are becoming global leaders, all in a region of Northern Ireland. We must pay tribute to the Department of Enterprise, Trade and Investment and to the Ministers—when the Assembly was working—for their hard work, which is still delivering today, even though the Assembly is not functioning as it once was—the seeds were sown and the dividends are being paid.

Much of our attraction is the skills base, supported by international-standard research facilities, with education and big business working together. We have the education, the big business, the opportunities, the quality of graduates and all those things together—Northern Ireland again leading the way for the UK to follow. That is how things happen and benefits are achieved.

Northern Ireland is consistently the top-performing region of the UK in national exams at age 16 to 18. The fact is that we have the graduates, and that encourages the investment, which is perhaps why we have done so well. Digital firms want to invest because the skills base is there in Northern Ireland, and still available, because we continue to produce graduates to build above and beyond where we are. We have the highest percentage of qualified IT professionals in the UK and Ireland, with more than 77% holding a degree-level qualification.

I say with respect to the Minister and all other regions, Northern Ireland is leading the way. From a small base of 1.8 million people—although the latest stats tell us we are nearly at 1.9 million—we are up there with London and other parts of the United Kingdom. Post Brexit, therefore, we are in a position to do great good for the United Kingdom of Great Britain and Northern Ireland. This is an opportunity that we should be taking advantage of. Some 77% of post-A-level high school graduates in Northern Ireland go on to further and higher education, compared with the UK average of 71%. Again, Northern Ireland is leading the way.

All such things make it attractive to come to Northern Ireland. Furthermore, labour and property costs for a 200-person software development centre in Belfast are 36% less than in Dublin, 44% less than in London and 58% less than in New York. We can see the benefits of coming to Belfast and Northern Ireland. Improved connectivity, which is central to this debate, will only enhance our global potential. How can we build on our base and our level of delivery in Northern Ireland and across the whole of the United Kingdom? The motion seeks to highlight the importance of the ability to hop on a plane and get anywhere in the world quickly—the need for competitive APD, to allow us to show the world that we are only a short, cost-effective flight away.

Only aviation can connect the United Kingdom with existing and emerging markets vital to our post-Brexit future, producing and maintaining thousands of jobs, and indeed the thousands more jobs to come. At the moment we have a competitive disadvantage that we cannot afford: we pay more than double the aviation tax of our nearest European trading rival, Germany. The tax on trade hits UK businesses as they seek to expand international trade essential to our post-Brexit future. It acts as a brake on airlines’ developing new routes to the very markets that UK businesses need to reach.

If the Government want to signal that Britain is truly open for business as Brexit approaches, what better way could there be than to cut this tax on trade by at least 50%, to bring us in line and give us an advantage? The high rate of APD is a brake on expanding links with the world, meaning that the United Kingdom of Great Britain and Northern Ireland loses out on connectivity opportunities, and it is one of the main reasons why Germany is better connected to South Korea, Japan, China and Brazil than the UK. It should be the other way around and we should be doing something to address that.

Northern Ireland Budget (Anticipation and Adjustments) Bill

Debate between Jim Shannon and Lord Dodds of Duncairn

2nd reading: House of Commons & 3rd reading: House of Commons
Tuesday 20th March 2018 Commons Chamber

[Nigel Dodds]

Yes, and I am sure that even 30 years ago the good people of Lisburn would have extended that same welcome to the soldiers to whom my hon. Friend refers. The fact is that when we praise the peace process and the political process in Northern Ireland, far too little praise and respect are given to the members of the Army, the other services, the police or the Ulster Defence Regiment, who over many decades held the ring and protected innocent life, both Catholic and Protestant, Unionist and nationalist. They were courageous in their efforts and, were it not for them, we would not enjoy the peace that we enjoy today. There are individuals in the political sphere and elsewhere who are rightly praised and given plaudits, but the real heroes are the people of our emergency services and security forces who put on their uniforms and went out to defend the people at great cost to themselves. Some of them still bear the cost in mental and physical trauma.

[Jim Shannon]

I think it might be appropriate to point out, given that my right hon. Friend feels as we all do on this side of the Chamber, that Gillian Johnston was brutally murdered by the IRA as well. Perhaps her family feel that she is one of the forgotten victims, but we should remember them. There are many forgotten victims, but their families never forget.

[Nigel Dodds]

My hon. Friend is absolutely right to draw our attention to that particularly brutal slaying. It is right to remember all the victims of the troubles in Northern Ireland; it is all too easy to gloss over these events. We remember them not because we want to indulge in talking about the past but because it is important to remember the victims and to remember that their sacrifice is never forgotten.

It is also important that we redouble our efforts to keep moving Northern Ireland forwards. We want devolution to be restored and we want to get the institutions back up and running. Sometimes, when people say that we should just get it done, I say to them, “Well, let’s call a meeting of the Assembly on Monday. Let’s go through the process of forming the Executive. Let’s see who steps forward to form the Executive, and let’s see who refuses to step forward.” Then all those who say, “Why can’t you all just get together?” and who lump all the politicians into one group and say, “You’re all to blame” would be able to see for themselves who was refusing to form the Government.

Let us get this process passed today, and let us get the legislation passed tomorrow. Let us start getting decisions made and let us keep on with the efforts to get devolution. Then perhaps the Secretary of State, encouraged by her efforts in getting this legislation through, will come forward with the proposal to call the Assembly together, to re-establish the Executive, to invite those who wish to do so to form a coalition of the willing, and to invite those who refuse to do so to say why they are not prepared to take on the responsibility of the government of Northern Ireland.