Phillip Hammond says aviation has grown because it has been lightly taxed

There were several Conservative party conference events relating to aviation:

•Tuesday 5 October 12.30 – 14.00

AOA (Airport Operators Association) : A Future for aviation?

•Tuesday 5 October 17.45 – 19.00

ABTA/FlyingMatters: Are the Conservatives now anti-flying?

Does the coalition government’s ban on airport expansion together with the hikes
in Air Passenger Duty mean that the Conservatives are now the anti-flying party?
How are these policies affecting the UK’s ability to increase tourism receipts
and contribute to economic recovery? Are the hikes in taxes pushing foreign holidays
beyond the reach of ordinary people?


• Patrick Hennessey, Daily Telegraph’s Political Editor (chair)

• Mark Tanzer, Chief Executive at ABTA

• Professor James Woudhuysen, renowned futurologist

• Graham Brady MP, Chair of the 1922 Committee


•Tuesday 5 October 19.30 – 21.00

Question Time: Transport is vital to the economy. Discuss.

A range of topics raised by Transport Hub members and guests.


• Rt. Hon. Philip Hammond MP, Secretary of State for Transport

• Steve Agg, Chief Executive, CILT – Chair

• Stephen Alambritis, Chief Spokesman, FSB

• Philip Gomm, Head of External Affiars, RAC Foundation

Without effective transport, the economy will struggle – it is the often unheralded
component of any thriving business. The Transport Hub is holding a Question Time-style
event with a high-quality panel, including Secretary of State Philip Hammond,
who will discuss the impact of transport on both the environment and the economy;
and how the Conservative-led coalition should prioritise its transport planning
to the benefit of passengers and business.



from the point of view of the travel industry:

Hammond ‘s blunt words for aviation

7.10.2010 (TTG – Travel Trade Gazette)

by Chris Gray

Following accusations it is part of "the most anti-aviation" government to date,
the Conservative party used its conference to underline its tough stance towards
the industry…

Aviation needs to "come in from the cold" and make more effort to reduce its
environmental impact, according to transport secretary Philip Hammond.

He delivered an uncompromising message to the industry at the Conservative party conference this week after the coalition was accused by the British Air Transport Association of being the most anti-aviation government ever.

Hammond rejected Bata’s accusation, saying it did not help the industry’s case,
and promised no respite from taxation that he believed would spur airlines to
improve environmental performance.

Abta said Hammond’s position demonstrated that airlines and the travel industry
would have to use new arguments to persuade the government that its policies were
unfairly damaging to aviation.

Asked by TTG about Bata’s accusation during a fringe debate on transport policy at the conference
in Birmingham, Hammond said aviation had grown because it had been "lightly taxed" and it had
to be prepared to pay its environmental costs.

"I want to see aviation come in from the cold and engage with the environmental
agenda in the same way other transport sectors have done.

"I am not anti-aviation or anti-flying, but I do think aviation should pay its

He said that would be achieved through Air Passenger Duty and through aviation coming into the European Union Emission Trading Scheme (ETS) in 2012, which would lead to airlines changing their behaviour, becoming
more fuel efficient and developing lower carbon technology.

Andy Cooper, Thomas Cook’s director of government and external affairs, said Labour had
confirmed when it was in power in 2007 that aviation more than paid its environmental

He asked Hammond if that meant the coalition would ditch APD once aviation entered
the ETS.

However, Hammond said: "The APD increases will go ahead and we still expect to enter the
ETS in 2012.   I have no good news for you on any plans to reduce taxation on this

Luke Pollard, Abta’s head of public affairs, said it was clear the industry would have to
find new arguments as Hammond was not sympathetic to airlines’ concerns.

Although Hammond said he was not anti-flying, the "unintended consequences" of
his policies would make voters believe that the government was, said Pollard.

"You can’t say you are not anti-flying and then pursue policies that damage the
aviation sector," he added.

link to article