1 May 2003
020
7561 0282
Introduction:
An
industry with huge hidden costs – and blessed with massive tax-breaks
I1
The Green Party’s report Aviation‘s
economic downside outlined the preferential treatment given to the aviation
industry by the government, and the damaging effects of this rapidly expanding
industry on our health, environment and economy.
I2
That report made clear that the most highly polluting transport mode on earth,
and the fastest growing source of greenhouse gas emissions, is being actively
encouraged by the government; indeed might not be growing at all if it were not
receiving £7 billion worth of tax-breaks and almost £4 billion worth of other
hidden subsidies every year, making air transportation appear artificially
cheap. The aviation industry benefits from the equivalent of a donation from
each and every man, woman and child in the UK of more than £180 a year.
I3
Now the Green Party reveals the cash-for-runways scandal. Airport companies are
paying huge donations to the political parties that support airport expansions.
I4 Most
of the donations are in kind – usually free parking at airport for MPs. But
Manchester Airport plc has gone further, and has recently donated £60,000 in
cash to the Labour Party. This is an especially dubious arrangement, as
Manchester Airport plc is 55% owned by Manchester city council, which is run by
the Labour Party. Labour runs the council, the council controls the airport,
the airport funds Labour. The airport company’s cash donations would pay for
Labour’s entire local election campaign in Manchester in 2003 three times over.
1.
The British Airports Authority is amongst the biggest donors to the Labour,
LibDem and Conservative Parties
1.1
Between February 2001 and September 2002, the British Airports Authority made
in-kind political donations of over £1.1 million. Labour received £525,830 of
this, the Conservative Party £441,907 and the Liberal Democrats £114,083.
1.2
BAA is:
a.
Labour’s 9th biggest donor.
b.
The Conservative Party’s 7th biggest donor.
c.
The Liberal Democrats’ 4th biggest donor.
2.
The Manchester airport donations scandal
2.1 Manchester Airport plc has made in-kind donations that would probably pay
for Labour’s local election campaign throughout the North West region. Between
February 2001 and October 2002 donations from Manchester airport to Labour
totalled £271,723.02. Manchester airport is now Labour's 21st biggest donor.
2.2
Of this, £60,000 were cash donations. This sum dwarfed British Airways’
donations to the Labour Party, and would fund the election campaign of all 34
Labour candidates in Manchester in the 1 May 2003 elections almost three times
over. (The maximum sum those 34 candidates can legally spend in totals
£23,446.32, but this is likely to be more than Labour actually spends.)
2.3 What’s worse about the Manchester situation is that manchester Airport plc
is publicly owned, being the property jointly of the ten boroughs in Greater
Manchester. Manchester city council, which is Labour-run, owns 55% of the
shares and thus has the controlling influence. In effect, an airport under the
control of a Labour council has made in-kind donations to Labour of over
£200,000, plus £60,000 in cash, from money that really belongs to the public.
Around the time of these donations, Manchester airport bosses awarded
themselves an 86% pay increase.
3.1
The bulk of the aviation industry’s donations to political parties (which now
need to be declared under the Political Parties, Elections and Referendums Act)
are in-kind donations in the form of free airport car parking. Some people
argue that these are not really political donations because they are given to
all parties. However, in practice they do
constitute a huge in-kind donation to those parties that favour airport
expansions – the Green Party would not accept such donations. The donations
encourage MPs to use air travel more than they might otherwise, by making air
travel cheaper for them. This is effectively a goodwill payment – almost a
bribe – from airport companies to parties that favour airport expansions.
3.2
Both Manchester Airport plc and BAA plc provide free airport car parking to all
MP’s regardless of their party. At Manchester airport the bulk of the
£211,723.02 total value of car parking passes goes to Labour, reflecting the
number of MPs they have in the catchment area of the airport. At BAA the value
of each pass is listed at over £5000. The bulk of the £1,123,782.90 total value
of car parking passes goes to Labour, reflecting their dominance in House of
Commons.
It is
of no great surprise that the aviation industry receives such preferential
treatment from the government in consideration of the large sums of money
involved. The Green Party calls for an ending of donations from airport
companies to political parties immediately, and for fair treatment of the
aviation industry to reflect the massive negative impacts it has on health,
environment and the economy. In the case of publicly-owned Manchester airport,
the Greens argue that the donations should be paid back – especially the
£60,000 cash donated to Labour.
Info from:
http://www.cleanpolitix.com/fund/index.asp?page=top20&i=0&top20=Labour .
See also:
Aviations' Economic
Downside at http://www.greenparty.org.uk/reports/2002/AED2a.htm
.
http://www.manairport.co.uk
.
http://www.baa.co.uk .
Published and promoted by Spencer Fitz-Gibbon for the
Green Party, both at 1a Waterlow Road, London N19 5NJ.