Thursday, June 9

It's the French -again

SCOTTISH MPs last night started a rearguard action against plans to impose a new
airline tax in a French proposal to raise money for Africa.
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The Scottish National Party and the Scottish Liberal Democrats said they wouldbe alarmed if Gordon Brown, the Chancellor, accepts the tax as the price of French support for his Africa agenda.
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Plans now being formally examined by the European Union could add £7 to adomestic flight or £20 to an international flight.
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Alistair Carmichael, the Lib Dem MP for Orkney and Shetland, yesterday tabled a Commons question seeking clarification - saying it could deal a painful blow toScotland. "Air services to and from Orkney and Shetland are vital.
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Local people often have no choice but to fly. To tax these services still further would beunacceptable," he said."I completely support efforts to increase and improve aid, but this would impacton communities living in economically fragile communities most. "
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Angus Robertson, the SNP's international affairs spokesman in Westminster, saidthat he too supports the aid-to-Africa agenda, but said an airline tax is notthe right way to go about it."Aid to Africa should be made through public spending," he said.
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"Either you aregoing to be open and upfront about taxing for environmental reasons, or using itas another stealth tax. It's not very joined up really.
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"The airline industry has been flatly opposed to the idea since it was suggestedby Jacques Chirac, the president of France, and backed by the German government. The Association of European Airlines said the tax could hurt areas such asInverness, where new low-cost airlines have proved a boon to the economy.
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"Our industry plays an eminent role in promoting tourism, surely a key source ofrevenue within Europe and in developing countries ... ministers should encourageand not discourage tourism," said a spokesman.
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He added that the mix of airfares payments and aid-related charges was "a recipefor confusion and distortion to competition, both within Europe andinternationally". The issue is likely to be discussed when Mr Brown meets the G7 financeministers, who are meeting in London tomorrow.
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Last weekend, EU finance ministers agreed a voluntary levy on airline tickets tofund extra development aid - but only a handful of countries said they woulddefinitely implement it. Britain has so far not joined.Finland, Sweden and Italy have said they are sceptical. Greece has objected, asit would "penalise regions that are geographically disadvantaged".

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