MPs disagree over freight plane tax
02.11.08
A disagreement has broken out between two Derbyshire MPs over a planned tax on UK freight flights – which one 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, costing local jobs.
At the moment, only passenger flights in the UK are taxed by the Government, and freight is only taxed if it is carried on a plane also carrying passengers. However, a revision to the air passenger duty would see freight flights taxed according to their weight on take off. The thinking being this is that older, heavier, more polluting planes would receive a higher charge. But critics say that some newer, less-polluting planes are actually heavier than older models, meaning the tax would penalise eco-friendly planes.
In a debate in Westminster last week, Mr Laxton said the plan, should be scrapped. He said: ‘I think the proposals put forward are fundamentally flawed. It will not produce the benefits claimed and it will damage the UK's competitiveness and employment.’
He argued that operators like delivery firms DHL and UPS could move abroad to countries with better tax options. He said that to get goods to Britain, they would then land in other countries and transport products by road – increasing pollution.
The issue is particularly important to the region because East Midlands Airport is the UK's biggest air freight hub, handling over 300,000 tonnes a year. Over 2,000 people work in the freight sector at the airport, while the industry employs more than 4,700 people in the region. 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's views and maintained that some sort of tax 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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