Session: 2011/2012

Date: 16 May 2012

Committee: Finance and Personnel

Air-Passenger-Duty-Report.pdf (531.05 kb)

Background

The UK Finance Bill 2012 was introduced in the Westminster Parliament on 10 May 2012. This Bill includes the provision to devolve direct long-haul rates of Air Passenger Duty (APD) to Northern Ireland. The provisions deal with a devolution matter as they change the legislative competence of the Northern Ireland Assembly. As this involves the devolution of tax-setting powers, there will be a reduction in the block grant of an estimated maximum of £5 million per annum, in order to ensure compliance with EU state-aid rules; and the Executive will incur this full cost if it decides to set the rate for direct long-haul flights at zero.

The Minister of Finance and Personnel will table a Legislative Consent Motion which, in effect, if approved by the Assembly, gives consent to the provisions contained within the Finance Bill 2012 and allows the Westminster Parliament to proceed with the Bill. The Committee for Finance and Personnel is reporting to the Assembly on the provisions of the Bill which deal with a devolution matter as outlined under Standing Order 42A.

 

Download the Committee for Finance and Personnel's Report on the Legislative Consent Motion: UK Finance Bill (Air Passenger Duty) here.

Download the Annex (Finance Bill 2012 - Clause 189, Schedule 23 and Explanatory Note) here.

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