UK Treasury hits back at Ryanair air tax 'skyway robbery' claims |
|
|
|
Published
:
Fri, 09 Feb 2007 14:22
|
LONDON (AFX) - The British Treasury has hit back at claims by low-cost airline Ryanair PLC that the government will not spend the funds its makes from doubling the air passenger duty (APD) on the environment.A statement issued today by Ryanair branded as 'rubbish' claims by UK Chancellor Gordon Brown that the 1 bln stg the additional tax will bring in to the Treasury annually would be used to help the environment.However, the Treasury has hit back by saying that the increase in APD will save the equivalent of three quarters of a million tonnes of carbon every year by 2011. The Treasury also insists that the cash generated by the APD will be used wisely and will not 'disappear into his [Gordon Brown's] pockets' as Ryanair has claimed.'The Chancellor has said that the revenues raised from the increase will secure extra resources in the coming spending round for our priorities such as public transport and the environment,' a Treasury spokesperson said in a statement.'The Treasury continues to believe that the inclusion of aviation in the EU Emissions Trading Scheme is the most efficient and cost-effective way to aid this sector in meeting its external costs and playing its part in tackling climate change.'Ryanair, who has called on its customers to write to Gordon Brown to voice their concerns about the tax says the implementation of the tax -- which came into force on Feb 1 -- is a form of 'skyway robbery'.'Gordon Brown is guilty of using the environment to steal more taxes from ordinary people and in just one week he has already grabbed 20 mln stg. Over the coming year he will use this tax hike as an excuse to steal 1 bln stg of passengers' money,' said Ryanair's head of communications, Peter Sherrard.The Dublin-based carrier says that Brown should tackle the main sources of pollution in the UK -- namely power generation and road transport, which it claims account for 26 pct and 18 pct of CO2 emissions.The Treasury, however, says it is airlines and travel companies -- not passengers -- who are liable for APD.'It is a commercial matter for those companies whether or not, and how, they choose to pass this on to passengers,' a Treasury spokesperson said.Under measures announced by Gordon Brown in his pre-Budget report in early December, short-haul passengers in the lowest class of travel will pay 10 stg in duty from Feb 1, up from 5 stg, and in other classes they will pay 20 stg, up from 10 stg.Long-haul passengers in the lowest class of travel will pay 40 stg, up from 20 stg, and in others they will pay 80 stg, up from 40 stg.By Rhys Jones r.jones@thomson.comrj/nesCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
|
|
|
|
Print this Story
Ryanair chief exec admits his emissions claims were an 'error' 