Headline: 
TAX NEWS: Green air tax 'would damage economy'.

Description: 
TAX NEWS: Green air tax 'would damage economy'.

Introducing extra taxes on airlines would not benefit the economy, the chief executive of Britain's largest airport operator has warned.

Stephen Nelson, boss of BAA - the owner of airports including Heathrow, Gatwick and Stansted airports - said hiking up aviation levies as many groups have argued recently would not achieve the aim of benefiting the environment but would cause inconvenience to passengers and price many out of flying altogether.

Nelson claimed that the best option to overcome the environmentally unfriendly effects of flying is a carbon emissions trading scheme under which airlines buy permits to cover their carbon dioxide output above a particular limit. If they drop below the limit they can sell them on.

Speaking during a fringe meeting at the Conservative party conference, Nelson said: "A tax to price people out of flying would not deliver the required environmental result.

"It would also damage people's quality of life. Of course we have to minimise the negative effects of flying, but the best solution is an emissions trading scheme, which would be both effective and popular."

Nelson comments followed the release of poll findings by the British Air Transport Association (BATA) which showed public support for carbon emissions trading.

According to the study, 48% of respondents believed the environmental costs of air travel should be met through an international system of carbon trading, even though this would lead to higher fares. In contrast, 32% thought that a special green tax should be levied on airline tickets.

Roger Wiltshire, BATA secretary general, said: "It is quite clear that most people have concerns about climate change but want to keep flying and do not see taxation as a solution.

"That is why they support a system of carbon trading, which would require airlines to cut their own emissions or pay for emissions reductions elsewhere. This would produce a specific, direct environmental benefit in a way that taxation could never achieve.

"We fully support the inclusion of aviation in the EU's emissions trading scheme, and look forward to the European Commission's draft legislation for this, which is due before the end of the year."

Date: 
03.10.2006