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BASSETERRE, St Kitts (CUOPM) -- Industry experts in Britain have branded as a “'waste of time” the British government’s consultation on Air Passenger Duty (APD).

Despite a huge consultation on APD launched in March to ‘explore the scope for improving the fairness and efficiency of the current system’, the industry has been very disappointed by the results.

In the British government’s response to the consultation published on Tuesday, it backs all of the policies it outlined before the consultation took place.

These include a four-band system of APD based on the distance travelled and a reduced rate of APD for lowest fares.

“It’s an unbelievable set of results. The findings really don’t bear scrutiny and it’s something we’re going to go back to the Government with,” said Mike Carrivick, chief executive of the Board of Airline Representatives in the UK (BAR UK).

“It’s been a big waste of time and effort. Why have a consultation on change when you’re not prepared to change?”

Responding to the Treasury's statement on Tuesday Carolyn McCall from easyJet, Willie Walsh from IAG, Michael O'Leary from Ryanair and Steve Ridgway from Virgin Atlantic jointly said:

“The (British) Government's consultation on APD has been a sham and a waste of taxpayers’ money.

“We are left with a tax that has already cost 25,000 jobs, is doing increasing damage to the prospects for economic recovery - and sends a message to the world that Britain is a difficult and expensive place to do business.

“We are united in calling for the Government to commission an independent study of APD's overall economic value and impact. We have no doubt this would confirm that APD's negative effect on UK GDP significantly outweighs its revenue benefit for the Treasury.

“Chancellor George Osborne confirmed as part of his Autumn Statement that APD would be extended to business jets, effective from April 2013, and that the proposed 10% increase in APD will go ahead in April 2012.

The (British) government response on Tuesday stated: “At Budget 2011 the government froze APD rates for 2011-12. In recognition of the industry’s need to plan ahead, the Autumn Statement 2011 confirmed that APD rates will increase from 1 April 2012, as set out in Budget 2011.

“The (British) Government has been clear that APD is primarily a revenue-raising duty, which makes an important contribution to the public finances, whilst also giving rise to secondary environmental benefits.

“Furthermore, VAT is not applied to flights and aviation fuel for commercial flights is not taxed.”

The (British) government said the Department of Transport is considering regional connectivity and regional airports policy as part of its development of a sustainable framework for UK aviation which will be issued for public consultation in March 2012.

It will also continue to look at the feasibility of devolution of APD to Scotland and Wales.

The (British) Government states it will not offset revenues raised through the Emissions Trading Scheme (ETS) against APD, meaning that passengers will be taxed twice when they fly from January 2012.

The APD levels per passenger from April 2012 are as follows:

                                                             Reduced rate Standard rate
Band A (0-2,000 miles from UK)             £13                 £26
Band B (2,001-4,000)                              £65                 £130
Band C (4,001-6,000)                              £81                 £162
Band D (over 6,000)                                £92                 £184

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Tellitasitis:
Why should CARICOM States expect special treatment from the UK in respect of APD? it wasn't so long ago that CARICOM States voted in support of the claim by Argentina to the Falkland Islands. They turned their backs on the UK and the right of the Falkland Islanders to chose their own government. Well now it's payback time. CARICOM states can now expect to pay the price for their betrayal of the Motherland. The UK should have doubled the APD for flights to the Caribbean. Let's have visa requirements for all CARICOM passport holders visiting the UK. Lets revisit those banana quotas. Perhaps there should be a new tax on remittences sent from the UK to CARICOM States? If the British Army has to fight against Argentina once more to protect the self determination of the Falkland Islands can the UK count on the loyalty of those UK soldiers from CARICOM States? Maybe its time to stop recruiting in the Caribbean. Maybe the UK should support the claim of Guatemala to Belize. Indeed the Guatemalans have a stronger claim to Belize than Argentina to the Falklands. Isn't Trinidad really just a little bit of Venezuela? CARICOM politicians cannot have it all ways. It's time for the UK to teach them what happens when you bite the hand that has given you the territory you now govern and has fed you for the past two centuries.