British govt increases air passenger duties for travel to NZ

Prime Minister John Key says the move has no basis and places “a significant burden on New Zealand businesses, on families who travel, and on our tourism industry.”

NBR staff
Wed, 07 Dec 2011

The British government has hiked the passenger duty for air travellers to New Zealand by seven pounds to 92 pounds per passenger.

Prime Minister John Key says the move has no basis and that the Air Passenger Duty (APD) places “a significant burden on New Zealand businesses, on families who travel, and on our tourism industry.”

“The British Government has been reviewing the structure of the APD this year and the New Zealand Government has been talking closely with them about this issue. We made our views on APD clear on several occasions, including during Foreign Minister William Hague’s visit here in January, and my own visit to London in April.”

The previous UK government used environmental grounds to justify imposing a higher levy on long-distance flights.

“With the tax for New Zealand-bound passengers set at four or five times the costs of offsetting the carbon emissions produced, this logic is without basis,” Mr Key said.

“The British Government’s announcement overnight maintains this cost difference, and ignores the fact that environmental concerns about emissions are being addressed through the European Union’s extension of its Emissions Trading Scheme (ETS) to aviation emissions.

“That puts a levy on airlines – meaning there is no justification for an additional duty on air passengers which discriminates on the basis of distance.”

Mr Key said the New Zealand Government had been hopeful that the British Government had been persuaded not to proceed with an increased APD that discriminated unfairly against Australia, New Zealand, the Caribbean, Singapore, South Africa and a few others.

NBR staff
Wed, 07 Dec 2011

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British govt increases air passenger duties for travel to NZ