First Choice has announced it will go ahead with its carbon offsetting scheme despite the Government’s decision to double Air Passenger Duty.
The scheme, to launch in spring next year, was put on hold while the company reviewed its position after the Government’s announcement earlier this month it would hike up APD from February 2007.
However, following news tour operators are expected to retrospectively pay the tax for existing bookings, the company will only match £1 contributions from customers for £1 donations for holidays departing after November 2007. Originally it was due to match donations from launch.
If the Government’s decision on APD is reversed, contributions will be matched from launch, the company said.
First Choice mainstream sector managing Dermot Blastland added: Blastland said: “We continue to support a sensible structured approach to carbon trading or off-setting.
“However, as a company we are expected to pay the Government between £4-5 million in retrospective APD. Regrettably, this means we won’t be able to start matching customers’ payments on summer 2007 bookings.
“This ridiculous tax, which will not be used for any environmental projects, has been imposed and has meant our plans have had to be delayed.”
The First Choice scheme, in which passengers have to opt out if they do not want to take part, encourages holidaymakers to pay £1 per adult and 50p per child when they book.
According to the company, its customers are expected to generate £21 million for the Government in APD – yet First Choice estimates the total cost of offsetting the company’s emissions is only £7 million.
The company is working with Climate Care to identify suitable projects for the scheme.