EU back down on airline carbon tax a wake-up call for PM
13th November, 2012
“THE European Union’s ETS is in chaos – the market has all but collapsed and the outrageous bid to tax international airlines flying in and out of Europe has been put on the backburner,” Leader of The Nationals and Shadow Minister for Infrastructure and Transport Warren Truss said today.“Julia Gillard should heed the lesson out of the EU today, which opted to save face by suspending its controversial carbon tax on international flights.
“The EU was always over-reaching in attempting to apply its carbon tax unilaterally outside its borders, inviting international condemnation from most of the world’s leading economies and major airline operators.
“In the wake of that outcry, the EU will now ‘stop the clock’ on its airline tax pending a global CO2 agreement. The reason cited for the back down – awaiting a global agreement on emissions – is very poignant for Australia.
“Global agreement on any action must be the starting point. Running ahead of the pack will only harm our economy while doing nothing for the environment.
“According to UBS Investment Research, as of the end of last year, the EU’s limited ETS has cost its economy $287 billion for zero net reduction in greenhouse emissions.
“Today’s decision in Brussels is a wake-up call for the Prime Minister, exposing her government’s economy-wide carbon tax as a costly farce in the face of global inaction.
“While the EU says it can re-start the clock should a global agreement not eventuate, it’s hard to see them signing up for the beating they’ve been taking or the beating they could expect through a World Trade Organization challenge.
“The EU tax on international airlines was patently unjust from the outset, especially for Australian airlines and passengers who could have been forced to pay taxes to the Europeans for flying over Australian airspace.
“Today’s announced by the EU will come as a relief to Australian airlines and their international travellers, but it’s no thanks to Labor.
“The Gillard government only paid belated lip-service to the issue after the Coalition shamed it into supporting our motion in Parliament to join the international effort to oppose the EU’s distance-based charges.
“At that point 26 other countries – including the United States, China, Japan, India, South Korea, Brazil and Russia – stood opposed to paying the EU tax.
“In May my motion called on the government to put Australia’s interests first. Namely that the government:
* ‘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.’
“Dragging its feet, the government agreed in August. But since then the Gillard government has sat on its hands.”
[ENDS]
