Chancellor Boosts USA Link With Tax Cut

Yesterday's confirmation that the controversial Air Passenger Duty (APD) is to be cut and also devolved to the Stormont Executive has been warmly welcomed.

The SDLP Leader and South Down MP Margaret Ritchie welcomed the reduction of APD on the transatlantic route between Belfast and Newark.

"It's vital that this route is allowed to continue and bring much needed direct investment here. The continuation of this flight is paramount to building confidence within businesses to invest here and allowing indigenous business to grow.

"Our airports need to be able to compete, particularly as many people have the option of travelling to Dublin airport on this island.

"I have continually urged the Chancellor to give Northern Ireland an exemption on air passenger duty in order to enable us to compete more effectively with the South and attract tourists to our airports.

"The importance of our direct air route from Belfast to North America in terms of commerce, tourism and the economic development of our region is vital," she said.

The cost of the tax has been threatening to kill off the daily service between Belfast and New York as it adds £60 to an economy fare and £120 to a business ticket, while the tax out of Dublin airport is just three euro.

Continental Airlines fly from both airports and say they've been absorbing the tax cost in Belfast in order to avoid passengers simply opting for Dublin.

Successful Mission

The 'author' of the legislation change, Stormont First Minister Peter Robinson MLA and the temporary Deputy First Minister John O'Dowd MLA also welcomed the announcement.

DUP Leader, Peter Robinson said: "The Chancellor's announcement represents the culmination of months of intense engagement undertaken by the Deputy First Minister and I to prevent the loss of our Continental Airlines service to Newark which would have had an hugely negative effect on our economy and business confidence here.

"HM Treasury as a result have now agreed to immediately reduce the duty for direct long haul flights from 1 November and to begin the process to devolve APD to the Assembly.

"We anticipate that we will bring proposals to our Executive Colleagues that would further reduce this tax to at least the level in the Republic of Ireland as soon as it is devolved," he said.

Meanwhile, a spokesman for local independent shopkeepers is also flying high today.

The Northern Ireland Independent Retail Trade Association (NIIRTA) Chief Executive Glyn Roberts said: "This is excellent news for the local tourism industry and our economy as a whole that APD is to be cut.

"More tourism means more customers for our retail sector in Northern Ireland and if the [New York] Continental service had been lost it would have been very detrimental to our economy," he added.

"I hope that the devolution of APD will enable the NI Executive in the future to be able to attract more airlines to open more direct long haul flights for Northern Ireland."

He was commenting after Owen Paterson, Secretary of State for Northern Ireland yesterday welcomed the announcement by the Chancellor of the Exchequer, George Osborne, of reduced Airline Passenger Duty on all direct long haul flights from Northern Ireland from 1 November.

Mr Paterson said: "This is really good news for Northern Ireland. Our priority is to protect jobs and help create more jobs.

"First-rate transport links are essential to Northern Ireland's future prosperity and that is why we have worked so hard with the Chancellor on this issue.

"The announcement will help safeguard the vital direct link from Belfast to the United States and make it easier for the Executive to develop other long haul routes to attract foreign direct investment and increase tourism," he said.

Mr Paterson paid tribute to the crucial intervention of the Chancellor of the Exchequer: "We invited George Osborne to visit Northern Ireland in June and he was very impressed by the arguments of the business community and of the Executive about the critical importance of the direct air link to the United States to the Northern Ireland economy.

"He has taken a personal and sustained interest in this issue and acted with enormous energy and determination."

Mr Paterson also praised Northern Ireland Ministers: "Peter Robinson, Martin McGuinness and their colleagues worked very closely with us," he enthused on Tuesday.

"This has been a great example of how good teamwork between Whitehall and Stormont can deliver real benefits to Northern Ireland," adding that the reduction in APD will come into effect on 1 November and the legislation to devolve responsibility in this field to the Northern Ireland Assembly will come forward in Parliament in due course.

See: Lifeline For New York Air Link

(BMcC/GK)