Portfolio Releases

Government must now act against EU ETS

16th August, 2012 
THE Gillard government must now act after if backed a motion today by Nationals leader and Shadow Minister for Infrastructure and Transport Warren Truss to oppose the European Union’s carbon tax on international airlines flying into and out of Europe.

“Better late than never,” Mr Truss said as he welcomed the Gillard government to the fight for Australia’s interests and recognition of the inherent injustice of the EU seeking to impose distance-based charges on Australia airlines.

“That injustice could extend to the EU imposing their emissions tax on Australian aircraft flying over Australian airspace on their way to Europe.

“The international backlash to the EU ETS being imposed on flights into and out of Europe has been led by the United States, China, Japan, India, South Korea, Brazil and Russia… Australia must now join the fight quickly.

“We need the government to get into the international ring and make its presence felt now. Agreeing to our motion must be a catalyst for real action and we will support the government in any serious bid to take the EU to task and protect Australian airlines and Australian passengers.”

In May Mr Truss pressed the case in Parliament for putting Australian interests first and, today, the government agreed to his motion that Australia:

* ‘use all political, diplomatic, and legal tools at its disposal to ensure that the European Union’s ETS is not applied to aircraft registered by Australia or the operators of those aircraft;

* ‘should the European Union maintain the application of the European Union ETS to flight sectors outside Europe, immediately assess whether the European Union ETS is consistent with the World Trade Organization (WTO) agreements and join any WTO challenge; and

* ‘join appropriate international action to prevent the application of the European Union ETS to non-European Union airspace.’

“This is much-needed support for Qantas, which stands to pay an extra $2.3 million in 2012 alone under the EU ETS and it will give some comfort to our tourism industry, which is bracing for even higher airfares to and from Europe,” Mr Truss said.

“It is important that Virgin Australia’s code-share arrangements with Etihad into Europe, including passenger fares on its flights between Abu Dhabi and Europe, also be spared the EU cost increases.

“With the leading economies of the world pushing back on this EU tax, Australia must now be on the front foot and in lock-step with international efforts to protect the competitiveness of our airlines, especially as Australian passengers have the most to lose because we are so far away from Europe.”

[ENDS]



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