Industry forum critical of carbon tax policy

The Australian Aviation Associations' Forum views the Federal Government's Clean Energy Future plan as yet another example of a failure to consult.

Specifically, the Forum says that:

The inference that the aviation sector is one of "round 500 big polluters" and is a "key contributor to greenhouse gas emissions" is wrong and misrepresents the fact that the aviation sector is a relatively small emitter of carbon pollution (approximately 1.5% of total emissions). It also ignores the aviation sector's significant achievements to date mitigating environmental impacts inclusive of lowering fuel usage and carbon pollution.

By imposing a carbon tax-derived increase The Clean Energy Future plan will more than double the current excise on aviation kerosene (avtur) and aviation gasoline (avgas) used for domestic aviation.

From 2012 excise on avtur will increase incrementally by 6.604 cents a litre (from 3.556 cents per litre to 10.160 cents per litre in 2014-15).

From 2012 excise on avgas will increase incrementally by 5.588 cents per litre (from 3.556 cents per litre to 9.144 cents per litre in 2014-15).

For a sector that cannot readily further reduce its fuel use and is already dealing with exponentially increasing costs, the imposition of a carbon tax is onerous, regressive and discriminates against aviation relative to other sectors of the economy.

The aviation sector is already playing its part in tackling climate change and will continue to do so but despite highly publicised trials of new technology and fuels, certification requirements dictate the lead time in switching aviation fuels or engines or adopting new technologies is measured in the decades.

The tax will increase the direct operating costs and will negatively impact important air services inclusive of aeromedical and patient transfer, air mail and freight, regional and domestic airline services, agricultural aviation, fire bombing, air search and rescue, flight training, rotary and fixed wing charter and private flying operations. It will be a very significant impost on an important sector providing critical infrastructure to all Australians.

Participants in The Forum are committed to working with all levels of government to ensure new aviation related initiatives and policies are considered, responsible, and do not damage or restrict the safety and viability of aviation activities within Australia. However, federal government initiatives that are ill considered and made without industry input or consultation are routinely imposed on the sector.

Recent examples include:

* Clean Energy Future plan - increased fuel excise

* removal of the en-route rebate scheme for regional airlines

* additional fuel excise to increase funding to CASA

* increased security screening and costs at regional ports

Participants in The Forum call on the federal government to work with the aviation sector and participant associations of The Forum to develop a cohesive, whole of government approach, to the aviation sector, to ensure a competitive, safe and viable sector that continues to provide critical infrastructure to all Australians.