Press Release
For Immediate Release
29 October 2007
ACTE President Predicts Green Taxes Will Be Disastrous To Progressive CSR Programs
Munich --
The Association of Corporate Travel Executives (ACTE) has come out against the concept of “green” taxes and similar restrictive programs that various governments are looking to exert on the travel industry. Speaking before a packed crowd assembled for association’s Global Education Conference in Munich, association President Richard Crum stated that ACTE would oppose government activity of this nature -- regardless of the country of origin -- as a logical extension of the landmark CSR initiative the organization introduced to the industry three years ago.
“The travel industry is currently being targeted for new green taxes, and other economic measures on different national levels,” said Crum. “ACTE is opposed to any taxation or penalizing the travel industry for green issues. We will aggressively oppose these measures, and are working on a specific initiative in this regard.”
Crum acknowledged that pushing the industry toward stronger environmental measures obviously seems like a good idea on the surface, but stated that the business travel industry was already far ahead of other commercial sectors in adopting cleaner and greener practices.
“Few industries can report the kind of progress in CSR as the travel industry,” said Crum. “Aircraft manufacturers have voluntarily made thousands of improvements in their products, making them lighter, quieter and certainly more fuel efficient. British Airways set example of working with ACTE to offset the carbon footprint of our global conferences. Air New Zealand and Virgin Atlantic are working to develop biofuels for the aviation industry.”
The ACTE President also cited the hospitality and rental car industries for adopting CSR programs. He emphasized that all of this progress has occurred without a government mandate.
“These green taxes make no sense. History tells us that they are unlikely to have any direct effect on our actual goal of reducing the impact that travel has on our environment.
These new taxes may actually have an unexpected, deleterious effect on the business travel industry. Crum contends that these taxes could deplete any funding for advanced CSR research on the part of companies, needlessly drive up the cost of travel, and reducing profitable travel to emerging industrial regions that are just now able to support environmental programs.
Crum explained that these green taxes and other proposed measures penalize even the most fuel efficient carriers by making them fly in holding patterns generated by antiquated air traffic control systems. “If governments want to make a serious dent in the 2 percent of the world’s carbon emissions resulting from air travel, they should focus their resources on eliminating congestion in the airways,” said Crum. “Not by charging travelers for the privilege of flying in circles due to air traffic control delays.”
The ACTE President was equally skeptical of the European Union’s Emissions Trading Scheme for the same reason. Before governments can target air travel with taxes or caps they need to address the real infrastructure problems associated with an ATC system that is severely outdated. “Congestion is a big problem regarding international airways. It is unfair to impose an economic penalty on the airlines for government’s failure to maintain ATC systems to keep up with commercial demand.” ”Modernizing the ATC systems around the world and moving to satellite based navigation will have a larger impact on the environmental impact of air travel than any tax or carbon trading scheme.” said Crum.
ACTE is also turning its attention to green tax developments in the Netherlands, where departing passengers could find themselves funding some aspect of environmental protection. “Initial reports indicate the Dutch green tax will have little impact on improving the environment, and may in violation of preexisting aviation agreements.
In the United Kingdom, a move to switch from duty on tickets to a charge based on the type of aircraft and the distance it will fly (as an incentive to get carriers to reduce emissions) may look like a move to have air carriers to operate fuller flights.
“But again this tax will have zero impact on the environment. It is just another example of a government using the excuse of global warming to raise general funds,” said Crum. In effect the British government is working at cross purposes with the airlines, in attempting to reduce the number of travelers, dramatically cutting back on flights. “The airlines are gearing up for more growth, and the most efficient ways to support that expansion,” he said. “They should be encouraged, not penalized. This is a classic example of why government needs to work with industry, instead of outside of it.”
ACTE plans to work with several other organizations, professional associations, and travel groups on these tax issues.
For more information, contact:
Debbie Flynn
CEO
Brighter Group
The Pod, London's Vertical Gateway
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London SW11 3BE England
T: 020 7326 9880
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