Today, the Prime Minister John Key said he was disappointed that the British Government announced an increase in passenger duty for air travellers to New Zealand.
The British Government has announced that the UK Air Passenger Duty (APD) will increase next April from 85 pounds sterling to 92 pounds sterling per passenger coming to New Zealand.
[...]
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.
Let's see if John Keys claim that an increase of £7 to the APD is "four or five times the cost of offsetting the carbon emissions produced" is true?
At the lowest estimate, one-person flying economy to or from the UK produces 1.63 metric tons of CO2. The current price of carbon has fallen from €10 in November to €7.19 now or $12.34 NZD.
That means the actual cost to offset the carbon emissions produced in a flight to or from the UK is NZ$20.11 or £10... clearly nowhere near the £7 imposed. The British government is effectively subsidizing the APD by £3 for each persons flight.
John Keys claim that the introduction of the Emissions Trading Scheme (ETS) into the APD was "four or five times the cost," (£40 to £50) is absolute rubbish!
It appears that the Prime Minister can't even do basic maths.
