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Ryanair boss attacks Brown on tax | Ryanair boss attacks Brown on tax |
(10 minutes later) | |
Ryanair boss Michael O'Leary has accused Chancellor Gordon Brown of "using the environment to steal more taxes from ordinary air passengers". | Ryanair boss Michael O'Leary has accused Chancellor Gordon Brown of "using the environment to steal more taxes from ordinary air passengers". |
He said the decision to double the Air Passenger Duty airport departure tax was "regressive and ineffective". | He said the decision to double the Air Passenger Duty airport departure tax was "regressive and ineffective". |
The move - taking effect on 1 February - meant Ryanair passengers would be taxed at more than 35%, he added. | The move - taking effect on 1 February - meant Ryanair passengers would be taxed at more than 35%, he added. |
The Treasury said the changes would save about three quarters of a million tonnes of carbon every year by 2011. | The Treasury said the changes would save about three quarters of a million tonnes of carbon every year by 2011. |
The Air Passenger Duty (APD) is to increase from £5 to £10 for most short haul flights, but passengers on long haul journeys now face paying up to £80 in tax. | |
Mr O'Leary said the chancellor would not spent any of the extra revenue from the increased duty on the environment. | Mr O'Leary said the chancellor would not spent any of the extra revenue from the increased duty on the environment. |
"He is just using the environment to steal more taxes from ordinary passengers," he said. | "He is just using the environment to steal more taxes from ordinary passengers," he said. |
Gordon Brown won't spend any of this money on the environment Michael O'LearyRyanair | Gordon Brown won't spend any of this money on the environment Michael O'LearyRyanair |
But a Treasury spokesman said: "The government has said that Air Passenger Duty has "a role to play in tackling the climate change impact of aviation". | |
"The revenues raised from the increase will secure extra resources in the coming spending round for our priorities such as public transport and the environment." | "The revenues raised from the increase will secure extra resources in the coming spending round for our priorities such as public transport and the environment." |
'Ill-informed' | 'Ill-informed' |
Mr O'Leary's comments are the latest in a war of words with ministers over the environment. | Mr O'Leary's comments are the latest in a war of words with ministers over the environment. |
Environment Minister Ian Pearson last week called Ryanair the "irresponsible face of capitalism". | Environment Minister Ian Pearson last week called Ryanair the "irresponsible face of capitalism". |
Mr O'Leary hit back at Mr Pearson, calling him "foolish and ill- informed". | Mr O'Leary hit back at Mr Pearson, calling him "foolish and ill- informed". |
On Wednesday the budget airline boss, who said the APD changes would generate about £1bn, also defended his company's record. | On Wednesday the budget airline boss, who said the APD changes would generate about £1bn, also defended his company's record. |
He said Ryanair had halved its carbon dioxide emissions over the last five years, as well as achieving a 45% reduction in fuel burn and noise by investing over $10bn (£5.2bn) in new aircraft. | He said Ryanair had halved its carbon dioxide emissions over the last five years, as well as achieving a 45% reduction in fuel burn and noise by investing over $10bn (£5.2bn) in new aircraft. |
He said he was writing to the chancellor asking him to withdraw the increase in APD. | He said he was writing to the chancellor asking him to withdraw the increase in APD. |
And quoting last year's Stern Review, which suggested aviation accounted for about 1.6% of global greenhouse gas emissions, Mr O'Leary concluded that aviation "is neither the cause of nor the solution to global warming". | And quoting last year's Stern Review, which suggested aviation accounted for about 1.6% of global greenhouse gas emissions, Mr O'Leary concluded that aviation "is neither the cause of nor the solution to global warming". |
'High-altitude release' | 'High-altitude release' |
But the Treasury said simply focussing on carbon dioxide emissions did not give the "whole picture of environmental damage caused by aviation". | But the Treasury said simply focussing on carbon dioxide emissions did not give the "whole picture of environmental damage caused by aviation". |
It said air travel was also responsible for "high-altitude release of other harmful emissions", adding that the total climate change impact of aviation could be two to four times the CO2 impact. | It said air travel was also responsible for "high-altitude release of other harmful emissions", adding that the total climate change impact of aviation could be two to four times the CO2 impact. |
Meanwhile, Friends of the Earth said "the government must do more to cut emissions from every sector". | Meanwhile, Friends of the Earth said "the government must do more to cut emissions from every sector". |
"Carbon dioxide emissions have risen under Labour," said the group's aviation campaigner, Richard Dyer. | "Carbon dioxide emissions have risen under Labour," said the group's aviation campaigner, Richard Dyer. |
"Air travel is the fastest growing source of carbon dioxide in the UK. | "Air travel is the fastest growing source of carbon dioxide in the UK. |
"Unless urgent action is taken to curb this growth it is unlikely that we will be able to tackle climate change." | "Unless urgent action is taken to curb this growth it is unlikely that we will be able to tackle climate change." |