A ‘LISTENING GOVERNMENT’? – APD RESPONSE WILL TELL!

 

SPAA President Kevin Thom has commented on the UK Government’s willingness to take account of stakeholder views in response to its plethora of Consultations, saying ‘If the number and complexity of Consultations conducted by the UK government during the last couple of years were anything to go by, its claim to be a ‘listening government’ would not be in doubt; but how it responds is key – and its response on APD will tell the true story.’

‘This week, I’ve written to Chancellor Osborne, ahead of next week’s Budget. (to view letter, see link adjacent, left) Rarely has the travel sector been so united as it is today, in our total opposition to APD. The airlines, the Scottish airports (see Associate News, above), our Fair Tax On Flying coalition and many other stakeholders are engaged in a long term battle with the ‘listening government’ to make it come its senses and reduce, if not eliminate this corrosive and damaging tax.’

Speaking on the SPAA website, and in the new edition of SPAA Today, the President goes on, ‘To be fair, there have been a few minor changes to mooted new regulations – for example, delays in the introduction of the ATOL Certificate and the Flight Plus category of booking – which indicate they are occasionally persuadable. This week, it was welcome to note that the DfT has agreed an exemption from ATOL for bookings made under the ‘Right To Fly’ regulation.’

‘This means agents who issue a ‘ticket’ immediately upon receipt of payment will not need to include such bookings in their ATOL-licensable sales. This has left the way open for the CAA and IATA to offer IATA-accredited agents the exemption without the need to have separate written agreements with each airline, provided they :

1. issue an IATA member airline’s ticket under the ticketing authority of that airline
2. issue a non-IATA member airline’s ticket under the airline’s ticketing authority through the IATA Bank Settlement Plan.

So – a few steps forward on the ATOL reforms (albeit we still believe the ATOL system is unfit for purpose), but what can we expect on APD in the Chancellor’s Budget next week?

Let’s see if he’s been listening!’

MTB 16/03/2012   

    

SPAA WRITES TO UK CHANCELLOR AHEAD OF BUDGET

SPAA President Kevin Thom has written to UK Chancellor of the Exchequer, the Rt Hon George Osborne MP, ahead of the 2012 Budget (21 March), with a clear and direct critique of APD (Air Passenger Duty) and a further plea that the tax be reduced, if not eliminated. 

He writes, 'Two years ago the Government identified travel and tourism as one of the key drivers of growth for the UK economy and the SPAA is calling on you the Chancellor to use the budget, to support, create and enable a favourable business environment not only for all three travel and tourism sectors, domestic, inbound and outbound from both a leisure and business travel perspective, but for UK industry as a whole.

In advance of the budget next week we would ask how do we as an island nation develop and grow our economy through tourism, trade and industry in Britain when we are facing

further rises in this disproportionate tax ? We are already being taxed at a level which is one of the highest nations in the world. In Europe, many other governments have either reduced or removed air passenger duty allowing their countries to be able to compete.

Last year the government sought, the opinions and suggestions from our and other industries on a wide ranging review of APD.  The SPAA along with ABTA, Advantage and many other organisations lodged submissions to the government all hammering home the point APD is damaging this country.

You are already aware of the unified comments of the UK’s largest airlines (British Airways, Virgin Atlantic, Easyjet & Ryanair) collectively voicing their fears for the future and we would full support their comments.

APD is particularly iniquitous in its effect on Scottish aviation and on Scottish businesses, including inbound tourism, a vital component of the Scottish economy. We are acutely aware this is not just a Scottish problem, but a problem for the whole of the UK.

APD gives us genuine cause for concern, and as a partner in ABTA’s Fair tax on Flying initiative we continue to campaign for its removal or at the very least a significant reduction.

The government claims on one hand it aims to boost and grow our economy through international trade, yet on the other hand they are intent on pricing the UK out of the international market place. In your Autumn Statement you raised the point of not wanting to price British Business out of the world economy but this is precisely what you are doing

With the introduction of the EU Emission Trading Scheme back in January, air travellers

are also faced with a secondary level of taxation on their flights and although we applaud any steps to reduce carbon emissions, we do not feel it is acceptable for aviation to be penalised twice.

As The Chancellor you have it within your power in the forthcoming Budget to create the economic conditions necessary for the travel, tourism and the UK’s international industry in general to thrive.

You have identified the travel industry as one of its key drivers of economic growth and I now call on you to back these words up by taking decisive action. It is critical that you significantly reduce or remove APD providing the platform to truly kick start the UK economy in all areas of travel, tourism and international trade.

We would urge you to reconsider your policy on the planned increase in APD on the 1^st April and ask you to remove the subsequent barrier to potential growth and thus enable the UK to compete effectively in the world stage.'

MTB 16/03/2012