A PROPOSAL to help North-East airports if Scotland carries out its plan to slash air taxes is rejected by a committee of MPs today (Friday, March 13).

Regional rates of air passenger duty (APD) – put forward by several North-East MPs – would “extend a patchwork across the UK and drive a race to the bottom”, an inquiry warned.

Lower APD in the North-East has been suggested as a way the Government could protect Newcastle and Durham Tees Valley airports if APD is cut, or abolished, north of the border.

Today’s report, by the Commons transport committee, agrees the Scottish threat is real, concluding it could put Northern airports “at a serious competitive disadvantage”.

And it points to the example of Northern Ireland, which is “losing 1.5m passenger journeys” – and 1,500 jobs, worth £30m in salaries - to Dublin, where APD is lower.

But, rejecting regional APD, the committee concluded: “We would prefer the Government to act strategically and in the national interest to address APD.”

The report fails to suggest what help can be provided to North-East airports in response to the new freedoms hastily pledged to Edinburgh after the narrow’ no’ vote in last year’s referendum.

All three main Westminster parties agreed that Holyrood should control APD, although the legislation will not be passed until after the May general election.

Last month, transport minister Robert Goodwill warned airlines – as well as huge numbers of passengers – will desert Newcastle Airport if Scotland slashes its taxes.

And he admitted the Government was struggling to find a solution to that threat, telling the same committee: “We are pretty much limited by EU competition rules.”

Newcastle Airport has warned of devastating consequences if the SNP slashes APD, suggesting 1,000 jobs will be at risk, draining £40m from the region's annual economic output.

Todays’ report does describe APD as the “principal threat” to the success of regional airports which are vital for economic growth.

Ministers are urged to “stand up for smaller airports”, with the warning: “Only Chad operates a less competitive air taxation regime than the UK.”

And the report condemns the “double-charging” which means passengers are hit when they fly from a regional airport to Heathrow – and then again to fly on abroad.

But the committee stopped short of calling for APD - which raises £3bn every year for the Treasury - to be abolished altogether,

The report also warns that:

* Regional airports will only benefit from expansion of Heathrow and Gatwick if slots are “ring-fenced” for them.

* That the scrapping of APD for children under 12 - from May - will do “little for smaller airports”, because most families fly long-haul from international airports.

Louise Ellman, the committee’s Labour chairwoman, said: “Transport Ministers must stand up for smaller airports and make the case to the Treasury that APD squeezes jobs, growth and connectivity.”