NEWS RELEASE
From Jean Lambert, London's Green MEP

16th July 2002

AIRPORT EXPANSION PLAN WILL COST TAXPAYERS BILLIONS

THOUSANDS working and living in the shadow of London's airports will know on Monday how they will be affected by a massive expansion of the capital's air capacity, when Transport Secretary Alistair Darling tells MPs the results of his aviation review (July 22, 3.30pm, Westminster).

Analysts expect proposals to include a new runway at Heathrow, alongside new runways at either Stansted or Gatwick and a possible new airport in the Thames Estuary to create an "international hub" to rival Paris and Amsterdam.

But the plans for the biggest expansion to UK aviation for half a century will cost the taxpayer billions in hidden subsidies, tax breaks and the costs of health and environmental clean-up, according to London's Green MEP Jean Lambert.

"The government will never be able to meet demand on such an unlevel playing field. Unless action is taken to make airlines pay the full costs of their activities UK passenger numbers are projected to reach 400m a year by 2020 - requiring the equivalent of another four airports the size of Heathrow," said Mrs Lambert.

The MEP said air travel already costs the government £1.8bn in lost VAT on flight tickets, aircraft and aviation fuel and contributes £2bn each year to the costs of dealing with climate change. These figures are set to rise in line with increased capacity and are likely to double by 2020.

She added: "Building new runways across London and the South East will do nothing to narrow the growing gap between supply and demand for air travel, which is kept artificially high through massive public subsidies. In the UK we currently prop up the aviation industry by some £6.8 billion a year - that's £182 for every man, woman and child in the UK - despite its huge negative impact on health and the environment.

"The government itself admits the introduction of a 100 per cent aviation fuel tax would reduce demand by 10 per cent. Taxing aviation fuel at even half the rate currently levied on motor fuel could expect to reduce demand by about 14 per cent - that's more than 50m passengers a year by 2020, according to current projections.

"By attempting to meet demand without removing these distortions the government is setting us on an unsustainable path, leading to a situation where the costs of declining health, environmental degradation and climate change are increasingly borne by the taxpayer."

ENDS
For more information please contact Ben Duncan on 020 7407 6280 or 0776 997 0691

Notes to Editors:

Figures quoted are taken from Aviation's Economic Downside by Dr John Whitelegg and Dr Spencer Fitz-Gibbon. The report is available from Ben Duncan on the above numbers or at the Green Party's Website: www.greenparty.org.uk/reports/2001/aviation/aviationdownsides.htm