Dave Thompson MSP

Highlands and Islands MSP Dave Thompson has given his support to a parliamentary motion which condemns the introduction of a new tax on many of the flights which connect some of Scotland’s most fragile rural and island communities.

Mr Thompson noted that Danny Alexander, Westminster’s chief secretary to the Treasury, had sat beside and supported the Chancellor as he announced a change that will put at risk the frequency and spread of services to areas which rely on air links for their social, health and business needs.

The Scottish National Party member contrasted Mr Alexander’s acceptance of the decision to replace the current Air Passenger Duty exemption for planes with less than 20 seats or 10 tonnes maximum take-off weight with his earlier hostility to the move when it was proposed in October 2007.

Speaking then, Mr Alexander railed against the proposal and stated: “The possible removal of this exemption would be a serious blow to the Highland economy.

“It would be a reversal of the government's recognition that these Highlands and islands services are lifeline services and on that basis merit a different treatment.

Mr Thompson agreed with Mr Alexander’s former stance but condemned his latest position.

“As with so many former principles Danny Alexander had when he was seeking votes from the people of his Highland constituency, this has been abandoned now that he has he succumbed to the temptation of high office dangled in front of him by the Tories,” Mr Thompson said.

The change will mean that services using the type of smaller aircraft widely used to service the needs of smaller communities around Scotland’s Highlands and Islands will not longer be exempt from tax. At present these smaller planes are exempt from the payment of Air Passenger Duty but under new rules announced this week operators will be eligible to pay a new “per plane” tax.

Mr Thompson’s concern was shared by Western Isles MSP Alasdair Allan, who submitted a motion calling on the Scottish Parliament to express concern at the Treasury move, a motion Mr Thompson has given his support to.

Note:

Alasdair Allan’s motion:

Taxation on Lifeline Air Routes

S3M-06626 Alasdair Allan (Western Isles) (SNP): That the Parliament expresses concern at the effects that proposals to replace air passenger duty (APD) with a per plane tax will have on remote and rural communities in Scotland; notes that, under current tax rules, passengers departing from Highlands and Islands airports and those flying on any service operated by aircraft with less than 20 seats or 10 tonnes maximum take-off weight are exempt from APD; believes that any proposed change is likely to force airlines to reduce the number of flights that they operate as their planes will need to be full in order to make them profitable; considers that the Highlands and Islands are dependent on lifeline air routes and will be directly affected by any change in air tax; further believes that the added tax will result in increased costs, a reduction in services and a greater unreliability, and notes that the Chief Secretary to the Treasury, Danny Alexander MP, commenting in 2007 on previous plans to introduce per plane tax, stated that it would be “…a serious blow to the Highland economy…” and “…a reversal of the Government’s recognition” that the services are a lifeline to the Highlands and Islands”.