14 March 2008

HRG calls for consultation over aviation duty

Hogg Robinson Group has called for consultation with the Government on how to spend the money raised through aviation duty.

Following yesterday's Budget announcement to increase the tax revenues by 10% in the second year of operation, HRG group industry affairs director Mike Platt said the measures fall short.

Ã¢â¬ÅâœWhile we support the GovernmentÃ¢â¬â¢s commitment to replace APD with a duty payable per plane and therefore enable the aviation industry to expand in an environmentally sustainable way, we believe that the measures announced yesterday have a long way to go to effectively address this key issue and welcome the opportunity for consultation,Ã¢â¬~ he explained.

He said HRG acknowledges the costs associated with developing a sustainable environment and recognises the role that taxation can play.

But the travel management company believes it is imperative there is accountability and transparency attached to this new government revenue stream.

Ã¢â¬ÅâœIf we are to succeed in enhancing the sustainability of this industry and prevent the projected rise in total aviation emissions from 2 per cent to 3 percent, we need to take action now," said Platt.

"Any funds raised need to be wisely invested into researching alternative fuel sources, developing technology to increase aircraft efficiency and addressing regulation of international airspace and flight paths to reduce air time.Ã¢â¬~

Meanwhile, HRG has welcomed plans to introduce automated biometric technology systems including automated technology at the major UK airports.

But warnsed that in the short term these are likely increase waiting times for travellers while teething problems and potential objections are addressed.

By Bev Fearis