My hon. Friend puts her point incredibly well. This issue has led to more than 200,000 communications with Members of the House of Commons, let alone the House of Lords and other places. Interestingly,
just 100,000 names on a petition would have, in any case, triggered a debate in this Chamber, and the Government would have had to listen closely to that.
APD is a very blunt tool. The hon. Member for Edinburgh West (Mike Crockart) referred to his days studying economics in the ‘80s. I also studied economics at that time, and it is clear that air passenger duty does not recognise the elasticity of demand, and potentially the elasticity of supply. It does not differentiate between different types of consumer or passenger.
The APD is also a blunt instrument and an anomaly because it does not deal with carbon emissions or global warming—the EU emissions trading system deals with them. The APD does not recognise opportunity cost. By raising revenue through the APD, the Exchequer might be forgoing a great deal more revenue from trade and travel, which might generate economic activity in other spheres.
The APD is an odd tax, but I should give a little credit to the Government, who had an opportunity to raise even more money from it in the past year or two. Thankfully, they contained the rate of increase. Nevertheless, it is beholden on them to consider the overall economic impact of the APD to ensure we have evidence and move forward on a rational basis and tidy up the matter.
The beauty of the motion is not just its presenter, but the motion itself and the fact that it is reasonable. It is not strident and does not attack the Government, and it is not party political. We have had a free and easy debate because all hon. Members recognise that we are talking about the rational outcome of tax. The motion is not party political or contentious; it is plain common sense. I urge my good and hon. Friend the Minister wholly to embrace the direction of the motion and to commission an overall review of the economic impact of this rather bizarre tax that is holding our country back.
3.56 pm