Air fears over green tax

Nov 4 2009 by Kelley Price, Evening Gazette

TEES Valley Airport bosses have issued a stark warning against too many green penalties for UK aviation.

Durham Tees Valley (DTV) claims a double whammy in eco taxes is threatening to undermine UK air travel, putting European competitors ahead of the game.

Air Passenger Duty (APD) has just gone up in the UK and is due another rise in 2010.

But other European countries have scrapped APS because of the recession.

The EU-wide Emissions Trading Scheme, which begins next year, will also place the responsibility on aviation and other sectors to cut their carbon or pay penalties.

A report by the Airport Operators Association (AOA) has highlighted the damaging effects on the economy of UK-only green taxes.

Now DTV bosses say a “level playing field” aviation deal must be struck at COP15, the world climate change crunch talks in Copenhagen next month.

Robin Tudor, public relations head for DTV owners Peel Airports, said: “If the UK Government continues to impose APD in isolation, our competitors in Europe will benefit.

“Business will migrate to Europe. Countries like Holland and Spain have already scrapped APD because it’s a hindrance in the recession.

“We are saying aviation should participate in the emissions trading scheme, but if we also keep APD it’s a double whammy in taxes for the UK.

“If prices go up, demand falls.

“Less air travel is bad for the economy, there are spin-offs from inward investment to tourism.

“The industry isn’t ignoring climate change, far from it, but aviation and the environment has to be taken in a worldwide context.”

Growth restriction measures also touted as a UK-only alternative to an international carbon emissions cap have also been slammed by the industry because of an estimated 40% hike in air fares.

AOA chairman, Ed Anderson, said aviation should be part of a low-carbon future and a global sectoral approach is needed at Copenhagen.

James Ramsbotham, chief executive of the North East Chamber of Commerce (NECC), said he was “gravely concerned” about the impact of APD on global trade.

“The way out of recession for the North-east economy is through export and foreign trade.

“Direct flight routes into the region are important as they affect the strategic thinking of foreign companies.”