Archibald ‘deeply disappointed’ at retention of air tax for Derry-Dublin service
Caoimhe Archibald has expressed her disappointment that the British Government intends to apply Air Passenger Duty (APD) to flights departing from the City of Derry Airport (CODA) on the Derry-Dublin air service.
The Minister has previously called on the British Government to exempt the service from APD, given its strategic importance to connectivity in the North West and delivering on the Minister’s commitment to Regional Balance.
Dr. Archibald said: “I am deeply disappointed that the British Government has decided to impose APD on the Derry-Dublin air service. Supporting the air route between Derry and Dublin is a New Decade New Approach commitment, which the British Government agreed along with the Irish Government.
“Improving regional balance is one of my key priorities as Economy Minister, in line with this I am investing £4 million per year to develop the City of Derry Airport. The Irish Government is contributing Shared Island funding for the Derry to Dublin service.
“Meanwhile the British Government, whose new Prime Minister [Andy Burnham] has made much of his pledge to ‘deliver growth in every postcode’, is intent on taxing the service.
"This will increase prices for passengers travelling from Derry to Dublin and runs entirely contrary to the objective of ensuring the sustainability of the route because of its regional significance, the exact same objective of the Derry to Heathrow route which does not have APD applied."
The new Derry to Dublin route is due to take off in the autumn after the Irish Government allocated €2m from its Shared Island Fund for the public service obligation (PSO) air service. Last month the Dublin transport minister Darragh O’Brien described City of Derry Airport as a ‘critically important’ air hub in Ireland.
Dr. Archibald concluded: “This route will unlock economic, business and tourism opportunities in the North West. I will therefore continue to engage with the British Government and urge it to reconsider this position, do the right thing and exempt this important air link from APD.”
There have been consistent calls for APD to be scrapped in the North.
Last year ‘A Pathfinder for Irish Aviation’, a major new report commissioned by the the influential Irelandia group, called for its abolition arguing it would encourage inward tourism.