'A stark warning to Government that the climate change dangers of air transport cannot be ignored.'

This was the initial reaction today (Tuesday) from countryside campaigners CPRE{1} to the publication of the Environmental Audit Committee's report Budget 2003 and Aviation{2}.

The report adds to the current controversy over options for airport expansion put forward in the Government's recent consultation The Future Development of Air Transport in the United Kingdom{3}. Options for new airports and runways are being justified by questionable economic benefits. These ignore or underplay a variety of environmental and social costs that range from the impact of catastrophic climate change to the shattering effect of noise on rural tranquillity{4}.

CPRE's Aviation Campaigner, Andrew Critchell said:

'The Committee's common sense approach to the future of air transport is a breath of fresh air. In this report, they have highlighted the wider cost of massive airport expansion in terms of damage to our landscape, tranquillity and heritage and they have exposed the large, unfair tax exemptions the industry receives for all to see{5}.'

The Government is expected to publish an Air Transport White Paper by the end of the year setting out policy to 2030. This will be a key test of the Government's commitment to the environment, in particular to tackling climate change. The Committee's report recommends a range of fiscal and other tools{6} to manage the demand for air transport and ensure that the aviation industry pays for the environmental costs and social costs it imposes on society.

Andrew Critchell concluded:

'An emissions charge to replace Air Passenger Duty and the introduction of VAT on domestic flights, as recommended by the Committee, are both possible now. The Committee also views action and leadership at the European and international level as essential to tackling the environmental costs of air transport head on. The Government should take these actions, rather than sanction new airports and runways and fly in the face of the mounting evidence of climate change.'

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NOTES FOR EDITORS

1. CPRE exists to promote the beauty, tranquillity and diversity of rural England by encouraging the sustainable use of land and other natural resources in town and country. We promote positive solutions for the long term future of the countryside and to ensure change values its natural and built environment. Our Patron is Her Majesty The Queen. We have 59,000 supporters, a branch in every county, nine regional groups, over 200 local groups and a national office in central London. CPRE is a powerful combination of effective local action and strong national campaigning. Our President is Sir Max Hastings.

2. Budget 2003 and Aviation has been published today by the Environmental Audit Committee and further information is available from the Committee office on 020 7219 6150.  The Committee's inquiry was prompted by the Treasury/DfT discussion document Aviation and the Environment: using economic instruments, which was itself prompted by the Government's recent consultation The Future Development of Air Transport in the United Kingdom which closed on 30 June. In the consultation documents, questionable economic benefits of air transport were used to justify options for massive airport expansion, including no fewer than 17 new runways across the country.   With regard to climate change, the report highlights that, if air transport is allowed to grow without constraint to 2030, the industry could be emitting almost 90% of the total carbon dioxide (CO2) emissions allowed under the Government commitment in the Energy White Paper to a 60% reduction in CO2 emissions by 2050.

3. See note 2 above for details.

4. Recent research carried out for CPRE has shown that an area of 2,090 sq km could be exposed to high levels of aircraft noise by 2030 if air traffic is allowed to grow without constraint.  The report, Aviation, Noise and the Countryside, was written by respected consultants TRL.

5. The air transport industry pays no tax on aviation fuel, no VAT on tickets, spare parts etc and no excise duty on consumer goods.  This is a tax exemption worth £10.1 billion a year.  While Air Passenger Duty does raise £0.9 billion a year, the net tax balance due to the above factors is a deficit of £9.2 billion.

6. The Committee's report recommends the scrapping of Air Passenger Duty and its replacement with an emissions charge, initially set to raise £1.5 billion a year, with an annual escalator so that revenue will increase over time.  The report also recommends the introduction of VAT on domestic flights.  At the European level the Committee urges the Government to lead on negotiating agreement on an emissions charge or trading scheme, with an European charge introduced as an interim measure pending an international trading scheme under ICAO, which many fear could not happen until 2012 at the earliest.  The report also recommends movement to a dual-till system for landing fees to ensure that retail sales do not subsidise low landing fees which leads to congestion.  Slots should also be auctioned on a regular basis so that demand is reflected in price.