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SCRAP APD AND BOOST ECONOMY
ABOLISHING AIR PASSENGER DUTY (APD) could create around 60,000 new jobs and help the UK economy begin growing again, according to a study by accountancy firm Pricewaterhouse Coopers (PWC). It found that scrapping the aviation tax could boost the UK’s gross domestic product (GDP) by 0.46 per cent in the first year and also add to growth every year up to 2020. PWC claimed the UK economy would be boosted by at least £16 billion in the first three years without APD, which would “result in almost 60,000 extra jobs in the UK over the longer term”. The report also said the abolition of APD would “pay for itself” because the boost in the economy would create higher income tax and VAT payments for the Treasury. The study was commissioned by four of the UK’s biggest airlines – British Airways’ owner IAG, Easyjet, Ryanair and Virgin Atlantic. They said in a joint statement: “The report highlights the critical role that aviation plays as an engine of economic growth for both international commerce and tourism. It proves that APD is one of the three most destructive taxes, alongside corporation tax and fuel duty. Should APD be abolished, the aviation industry would be able to move quickly to add new flights in and out of the UK, or invest in new products and services, creating new opportunities for businesses and much-needed jobs across the UK.” The Treasury has dismissed the findings of the PWC report, and said that it did “not recognise the figures in this report or agree with the assumptions behind it”.
POLITICS
IN CONVERSATION… Paul Wait
BBT talks to Paul Wait, who started as chief executive of the Guild of Travel Management Companies (GTMC) at the beginning of the year, following 13 years heading up UK sales for Virgin Atlantic. Prior to joining the airline, he spent 28 years at American Express. In January he featured in BBT’s Hotlist of 30 top influencers in business travel.
export performance in the UK. Statistics from Oxford Economics and the World Travel and Tourism Council prove the more you invest in travel, the more you benefit your bottom line.
Is it about changing mindset?
Procurement KPIs [key performance indicators] are nearly
Paul Wait
Can we expect to see you driving changes
at the GTMC? Part of my role is to build on the good work already done. I think
Shadow transport minister Jim Fitzpatrick Faster action urged
SHADOW TRANSPORT MINISTER Jim Fitzpatrick criticised government policy when he addressed GTMC members in London. He said the decision to split the HS2 routes into two bills, with the second – including the crucial Heathrow spur – not being announced until 2015 was “very disappointing, because we think they could move forward much more quickly”. The Poplar and Limehouse MP said the south-east needed a four-runway hub, but warned that by the time the Davies Commission reports in 2015 the country would have “lost a decade”. He added: “The coalition is slow on aviation, and slow on HS2.” Fitzpatrick said surveys of people in west London showed overwhelming support for Heathrow because it is the economic driver for the whole area, and said that GTMC members were “in a pivotal position” between their corporate clients and the airlines, urging them to engage with these partners to “speak more loudly” to decision- makers within government.
now we can take the GTMC to a different level in terms of PR and public affairs. My experience is working with massive brands, such as Amex and Virgin. Those brands weren’t built overnight – it took a lot of time and hard work, but people know what you get for your money and what the culture’s all about. I see a good opportunity for the GTMC to raise the profile of business travel as key to the economic health of UK plc
How can the GTMC promote
business travel during an era of cost-cutting? A priority is to
reinforce the point that business travel needs to be regarded as an investment, not a cost. Last year I addressed a conference and said those people who had aggressively cut travel had contributed to the reportedly worst-ever
always about savings, but those procurement teams haven’t worked out KPIs that show the value of travel to the profitability of your business. I challenge them to come up with a more positive model, one that shows the benefits of reinvesting savings made in the travel programme.
What do you want the GTMC to achieve in the public affairs arena? We need to up our game in terms of good data and research.
We’ve already got the knowledge, experience and talent – now we need to invest in research and data capabilities, so we can influence government decisions and policies. It’s all about the economy – having the data-backed evidence to show the Treasury, so they can see clearly where policies are going to reduce the deficit and add to the health of the economy.
Will it be a challenge to persuade travel
businesses to share that data? If they can see the value in being able to provide non-confidential
information that will help raise awareness of the importance of business travel to UK plc, then, hopefully, they’ll see it as a no-brainer.
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