Government accused of targetting industry over APD
ABTA Convention Special: The government was accused of cynically targetting the travel industry to raise revenue in the opening session of the ABTA Convention in Palma, Majorca.
Foreign Office minister Bill Rammell was criticised during the debate on topical issues, entitled “The Time, The Place”, for the recently-leaked plans to double air passenger duty to GBP10 on short-haul flights and GBP40 on long-haul trips.
Andy Cooper of the Federation of Tour Operators said: “APD doesn´t help the environment, the money just goes into the government coffers. It´s a cynical ploy to raise cash and deter people from travelling.”
Ian Derbyshire of JMC said the proposed rise in APD, which is expected to boost Treasury coffers by GBP800 million, would be a disaster for the industry.
“Will the government just come off the fence and admit that it´s a stealth tax? All we want is a level playing field. What is the government doing about buses and trains, which cause more pollution than airlines?”
Mr Rammell, who came under considerable pressure from operators as well as moderator John Stapleton, insisted the government had made no firm decision to raise APD, but claimed there were sound environmental reasons for increasing tax.
“Clearly we do understand the concerns of the industry and we will talk and consult. Nothing has been decided,” he said.
Meanwhile operators called on travel agents to try to limit the huge wastage of brochures. “We anticipate demand and put out brochures,” said Steve Kimber of Cresta Holidays. “If anyone is getting too many brochures they should let us know, because we need to cut costs.
Richard Carrick of Hoseasons added: “Operators and agents can implement stock control by working together. There is no excuse for the level of wastage.”
The major operators were criticised by agents for publishing four editions of their main summersun brochures, but Chris Mottershead of Thomson defended the decision. “We need the different editions because we have to offer different prices. I would like to offer brochures without prices and then offer flexible prices on the system, but trading standards officers won´t let us” he said.
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