MPs in war of words over plans to tax freight aircraft
02.11.08
A spat has broken out between two Derbyshire MPs over a proposed tax on UK freight flights – which it is claimed will drive jobs out of the East Midlands, the Evening Telegraph reports. The Government says that its planned tax on freight planes will encourage operators to become more eco-friendly. But critics, including East Midlands Airport and Derby North MP Bob Laxton, say the new tax will put firms off using UK airports.
At the moment, only passenger flights in the UK are taxed by the Government, while freight is only taxed if it is carried on a plane also carrying passengers. The charge would see freight flights taxed according to their weight on take off – the thinking being that older, heavier, more polluting planes would receive a higher charge. But critics pointed out that some newer, less-polluting planes were actually heavier than older models, meaning the tax would penalise eco-friendly planes.
In a debate in Westminster last week, Mr Laxton claimed the plan, should be scrapped. He said: ‘I think the proposals that have been put forward are fundamentally flawed. It will not produce the benefits claimed and it will damage the UK's competitiveness and employment.’
Mr Laxton argued that operators like delivery firms DHL and UPS could move abroad to countries with better tax options. He also said that to get goods to Britain, carriers would land in other countries and transport products by road – increasing pollution.
The issue is particularly important to the region because East Midlands is the UK's biggest freight airport, handling over 300,000 tonnes a year. Some 2,000 people work in the freight sector at the airport, while the industry employs more than 4,700 people in the region. In total it supports more than 10,200 jobs and contributes almost £300m into the East Midlands economy.
South Derbyshire MP Mark Todd, who supports the tax, said the levy needed to be redesigned along different lines – but he argued against Mr Laxton and maintained that some sort of charge was needed. He said: ‘I support the principal designed to equalise the anomalies between pure freight carriers and passenger flights. The issue is how the tax is designed and what it is trying to achieve, in this case a cleaner environment. The focus should be on ensuring the efficient use of aircraft capacity – making sure planes are full – and trying to reduce the carbon impact of a flight.’
A decision on the tax is expected either in the next budget or pre-budget report.
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