UK ‘green’ tax and airline crisis – Aug 7

August 7, 2006

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UK: MPs demand higher air and road taxes

Matthew Tempest and agencies, Guardian
The government should stop “running scared of critical tabloid headlines” and hike up taxes on aviation and gas-guzzling “Chelsea tractors”, a cross-party committee of MPs said today.

The environment audit committee called for a new air passenger duty tax, higher VAT on the sale price of 4x4s and the return of the fuel duty escalator – scrapped by Gordon Brown after the fuel protests of 2000.

They also criticise the chancellor for his budget announcement of higher vehicle excise duty for SUVs, saying it does not go nearly far enough.

In a hard-hitting report, the committee lambasts the Department for Transport for presiding over the only sector of the UK economy to have higher carbon emissions in 2004 than the Kyoto “baseline” year of 1990 – and to still have higher projected emissions in 2020 than in 1990.

It dubs the department’s attitudes “fatalistic”.

Most controversially, they call for the 70mph speed limit on Britain’s motorways and trunk roads to be slashed or “rigorously enforced” to bring down the amount of carbon dioxide given off by cars.

They admit this will cause “public controversy”, but warn “the government does a disservice to future generations by running scared of tabloid headlines”
(7 Aug 2006)
Lowering speed limits to conserve fuel is not unprecedented. The US enacted a 55 mph in the 70s for that purposes, and a few voices have suggested re-enacting it, as a cheap, relatively painless (partial) solution. -BA


Q&A: UK’s national road charging scheme

Matthew Tempest, Guardian
How the proposed national road charging scheme will work and what problems may arise
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Why now?

Britain has the some of the worst congestion in Europe, the longest commute times, some of the highest train and bus fares, one of the lowest levels of light rail infrastructure and some of the poorest cycling facilities. Meanwhile, the number of cars on the roads has surged by a quarter over a decade to 25m.

By 2003 bus and coach fares, allowing for inflation, were 34% higher than in 1980, train fares 36% up, whilst the cost of motoring 9% down. Unsurprisingly, government forecasts suggest that the time drivers spend in traffic jams could rise by 20% by 2010.

How will charging work?

Cars will contain “black boxes” linked to a satellite which will monitor their location and direction. Motorists will receive regular bills, possibly monthly, charged at variable rates by time and geography: rural country lanes would likely be charged at the bottom of the range, around 2p a mile, with inner city rush hour roads attracting the top ?1.30 rate. The government hopes motorists will change their driving habits – by staggering journeys, sharing cars or switching to public transport – to the extent that there could be a 50% cut in congestion.
(7 Aug 2006)


EasyJet rubbishes green tax idea

Mark Tran, Guardian
The budget airline easyJet today dismissed as “lunacy” calls for higher aviation taxes as a means of reducing greenhouse gas emissions.

Europe’s second-largest budget carrier said a call by MPs on the environmental audit committee for higher air passenger duty was an example of “lazy thinking” and “just gives the chancellor Gordon Brown more money”.

The MPs proposed taxing each flight, rather than the present arrangement of charging for each passenger, in order to encourage airlines to be more efficient in filling their services. The MPs suggested the tax could also be extended to cover air freight.
(7 Aug 2006)
Air travel related:

In November 2004, according to our weblogs, the single largest network accessing the Energy Bulletin website by bandwidth, was that of Delta Air Lines, who have since moved into Chapter 11 bankruptcy.
-AF


Tags: Energy Policy, Transportation