Another classic example of government failing to understand the implications of the One Planet Equation, of the need, by taxation and incentives to continually reduce the resource intensity of goods and services. To restate my previous comment, only in this way can we ‘keep ahead of the Oil Curve’ and forge a viable economy for the UK, with a population of 70 million and a rapidly reducing access to ‘net useful enegy’
Only a year after Chancellor Alistair Darling announced plans to replace air passenger duty (APD) in November 2009 with a new levy per flight, he admitted his proposal “could harm the aviation industry at a time when it is facing huge problems”. The new proposals will raise £270m less over three years.
Mr Darling said he proposed to modify APD “into a four-band system ensuring those that travel further and have a larger environmental impact meet that cost”.
Passengers currently pay £10 in economy or £20 in first and business-class for flights within Europe, rising to £40 or £80 for long-haul flights.
Charges will now start at £11 in economy and £22 in the premium seats for flights of up to 2,000 miles, rising to £55 or £110 for more than 6,000 miles. Long-haul rates will rise swiftly, so that by 2010/11 the maximum payments will be £85 in economy and £170 in the pricier seats.
Andy Harrison, easyJet’s chief executive, said he was “dismayed” at the Government’s rethink. “APD needed to be changed to a tax on planes not people, but now the Government has succeeded in bodging up the reform of an already bodged tax,” he said.
John Sauven, Greenpeace executive director, said: “Plans to tax flights instead of people would have encouraged the industry to fill their planes instead of flying half-empty jet liners around the world.”