AN INDEPENDENT Scotland will slash air passenger duty (APD) in half and eventually scrap it altogether in a bid to lure international airlines into setting up more direct long-haul flights to destinations in North America and the Asia Pacific region, according to plans outlined in the White Paper.

The move will be welcomed by airports, which blame the tax for stifling growth and have long supported the Scottish Government's calls to devolve the powers for setting APD to Holyrood.

APD adds anything from £13 to £94 to the price of an ticket for all flights taking off from UK airports, with the cost rising to £188 per passenger for those travelling in non-economy cabins on long-haul flights.

Airlines complain they have to absorb much of the tax themselves to remain competitive and attract customers on to their flights, while research estimates it will cost Scotland £200 million in "lost tourism spend" by 2016.

A direct flight between Scotland and China would be prized by the country's business community, especially the whisky industry. The White Paper also highlights how the Irish Government has been able to strike a deal with US customs authorities to allow passengers travelling through airports in Ireland to clear US passport control before boarding the plane, cutting out lengthy waits at congested airports such as New York JFK.

Motorists are also promised that the cost of filling up their tanks will come under scrutiny, with the possible introduction of a Fuel Duty Regulator to stabilise the price of petrol and diesel against fluctuations in the oil market. There will also be investment in improving road conditions and complete dualling of all intercity routes.

Environmentalists are appeased, meanwhile, by plans for "almost complete decarbonisation of road transport by 2050" with more electric vehicles, the roll-out of smart-grid technologies and the expansion of Scotland's renewable energy network to supply green electricity.

The rail network will be completely electrified, cutting diesel emissions, while an independent Scotland could switch to a more European-style "public-supported and not-for-profit" model of ownership.