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Government computer says no new runways needed in Scotland - results welcomed Ahead of todayÕs Scottish Parliament debate (Thursday 19th June) on air transport [1], national environmental groups will present, at a Parliamentary seminar [2], to present information demonstrating that the GovernmentÕs own computer model shows no need for new runways at Scottish airports. Air transport has an unfair position compared to other modes because it pays no fuel tax, pays no VAT on any aspect of its operation, and has an effective subsidy because of duty free. Removing these market distortions, according to the Department for TransportÕs SPASM model, would see Glasgow grow to only 12 million passengers per annum (mppa) by 2030, instead of the 10.2-19.6 mppa predicted by the DfT. Edinburgh would grow to 11 mppa, instead of the 9.0-22.5 mppa predicted by the DfT. [3] The results of the new computer information are based on the book, The Hidden Cost of Flying, published by the Aviation Environment Federation (AEF) and written by former Treasury economist, Brendon Sewill. [4] Jeff Gazzard, National Director of Airport Watch, said: ÒThis work exposes the fact that the huge forecast growth in air travel is not inevitable. Through modest changes in taxation, the Government can ensure aviation pays for its environmental costs, and save the countryside from massive airport expansion. If the Government's commitment to promoting a sustainable Air Transport White Paper is to be more than window dressing it should include this analysis in its forthcoming announcement on airports, and act on the findings in its White Paper." Duncan McLaren, Chief Executive of Friends of the Earth Scotland, said: ÒThe truth is out. Claims that new and expanded airport are needed across the UK would vanish if the airlines and airports paid their own way instead of sponging off taxpayers. Airlines pay under 20p a litre to re-fuel. Motorists pay over 70p. You pay VAT on a stay in a Scottish B&B but not on a flight to Berlin. These favours fuel demands for constant airport expansion. Now that their own computer shows no need for new runways Ministers can set course for a reasonable, not runaway, level of demand to fly.Ó Colin Howden, Campaign Manager of TRANSform Scotland, said: ÒA fair tax system for aviation would produce benefits for the whole of society. AviationÕs impact on climate change, noise and pollution would be greatly reduced. Over £9 billion a year would be available for improvements in public services such as health, education, and policing.Ó In The Hidden Cost of Flying, author Brendon Sewill sets out the case for fair taxation of aviation and removal of aviationÕs special tax free status. This includes taxing aviation fuel and putting VAT on air tickets. Both of these would help ensure that aviation meets its external costs (the real costs it imposes on society such as air and noise pollution, climate change or loss of land). The Hidden Cost of Flying shows that these Ôhidden costsÕ are far higher than admitted by the airlines, and that air travel should pay a fair share of the cost of providing public services. The Hidden Cost of Flying suggests that, with public concern growing about climate change, obtaining international agreement to tax aviation should not be impossible. It also shows that, with fair taxation, the economic benefit from building a new runway would be negative. ENDS Notes to editors: [1] The SNP motion to be debated in the Parliament at 5pm on Thursday 19th June calls for the Scottish Executive to subsidise the expansion of the privately-owned Edinburgh and Glasgow airports. [2] Ahead of the Scottish Parliament debate, Airport Watch and TRANSform Scotland are holding a Parliamentary seminar, 'Freedom to Fly? Can air transport ever be sustainable?', at the Jury's Inn Hotel, Jeffrey Street, Edinburgh, Thursday 19th June, 1.15pm-2.15pm. The seminar is being hosted by Chris Ballance MSP, Scottish Green Party transport spokesperson. Speakers include: Cllr. Maureen Child (UK Sustainable Development Commission), Jeff Gazzard (National Director, Airport Watch), Duncan McLaren (Chief Executive, Friends of the Earth Scotland) & Dr. Richard Dixon (Head of Policy, WWF Scotland). A buffet lunch will be available from 1.00pm. The press are welcome to attend. [3] Glasgow currently (2000) has 6.9 mppa. The DfT has forecasted demand to rise to 10.2-19.6 mppa by 2030. Edinburgh currently (2000) has 5.5 mppa. The DfT has forecasted demand to rise to 9.0-22.5 mppa by 2030. Source: DfT/Scottish Executive (2002) ÔThe Future of Air `Transport in the United Kingdom: Scotland, p.19, Table 4.3. [4] The report The Hidden Cost of Flying is available at http://www.airportwatch.org.uk/publications/Hidden%20Cost%20Final.pdf The DfTÕs SPASM computer model is used to assess transport demand and was the basis for the GovernmentÕs airport expansion proposals announced last July. At the request of CPRE, AEF and Friends of the Earth, the DfT carried out new runs on SPASM to test different assumptions from those used by DfT officials. The new assumptions include that by the year 2030 aviation fuel will be taxed at the same rate as motor vehicle fuel (45.8p per litre), and that air travel will be subject to VAT. The new prediction is that the number of passengers using UK airports would rise from 180 million a year in 2000 to 315 million a year in 2030 (instead of the official forecast figure of 501 million passengers. On that basis there would be no need to build any new runways. END OF NEWS RELEASE |