Liberal Democrats in Business

News and views from the Lib Dem Treasury, Trade and Industry Teams and the Liberal Democrat Business Forum

Air Passenger Duty sends wrong environmental signals - Cable

12.00.00am BST (GMT +0100) Tue 1st May 2007

Following today's announcement that the Government is launching a consultation on Air Passenger Duty (APD), admitting that the current system sends 'inappropriate environmental signals and causes market distortions', Liberal Democrat Shadow Chancellor, Vincent Cable MP said: "Finally the Government has admitted that the current system of APD is wrong-headed and does nothing to encourage environmentally sustainable behaviour.

"A tax on the emissions of each flight, rather than each passenger, would provide a further incentive for airlines to invest in fuel efficient aircraft and fly full planes.

"David Cameron's Conservatives have not made any serious proposals on environmental taxes. They are just the old Tory party with a fresh face and a few warm words. They should be judged by what they do, not what they say."

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