North East told to stop moaning about airport tax

Oct 19 2009 by Adrian Pearson, The Journal

A CABINET minister has said holidaymakers in the region have no right to moan about new airport taxes because the taxes fund “huge” Government spending in the North East.

Planned hikes in Air Passenger Duty next month and in 2010 could lead to plummeting passenger numbers as customers face up to taxes four times as high as they were in 2006.

The Journal has called on Downing Street to freeze the tax rather than hit passengers with an increase as the economy continues to struggle through the recession. Ministers have previously justified the tax as a way of off-setting the environmental damage caused by the ever increasing number of airplanes using UK airports.

But Transport Secretary Lord Adonis has added to the row by telling the region the millions of pounds ploughed into the North East can only be raised through taxes such as APD.

He defended the controversial tax rise despite warnings Newcastle International Airport could lose out on vital new routes.

Lord Adonis said: “The tax is justified on two grounds. Aviation must pay a fair price for the damage it does, and we need the revenue in order to support the wider public services, which of course the North East benefits hugely from, and APD is a fair way to raise that funding.”

His comments come after Treasury Minister Lord Myners admitted APD was “primarily” designed to raise money, with a “nudge” towards the environment.

But asked if he thought the Government had been honest in its explanation for the tax, Lord Adonis said: “We have always been clear that this is both (a green measure and a money raising measure). I mean all taxes are money raising, you wouldn’t have one otherwise, but this also helps deflect the environmental damage aviation does.