CPRS a dead weight tax?

There are some ironies for regional aviation, and aviation in general, in the government’s Green Paper covering the Carbon Pollution Reduction Scheme (CPRS).

Since the beginning and particularly from the start of the jet age, designers, engineers and operators have done everything in their power to improve airframe, engine and fuel efficiency.

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This effort has led to extraordinary gains in engine and airframe performance as well as a significantly lower fuel burn. In addition over the past 15 years, the extraordinary development of GNSS technology has allowed new, more accurate routes to be planned. These gains have been matched by significant improvements in air traffic management systems, shortening flight times and reducing holding.

In short, aviation by its nature does everything it can to minimise carbon emissions.

The CPRS will not change aviation’s emissions behaviour because the industry is already continuously seeking efficiency gains. The application of the CPRS to the industry is simply a dead weight tax.

People across the industry are interested in ensuring that Australia strives for a cleaner natural environment.

This important goal is not in dispute. However, the CPRS offers nothing but adds more cost to an industry that contributes around one per cent to domestic carbon emissions and is always seeking to drive its emissions down further.

The industry does not need carbon permits or passed on extra fuel costs to change its environmental behaviour. It already leads the way in enhancing engine, airframe, avionics, materials and fuel technologies to reduce emissions, and will continue to do so.

The market provides most of the motivation to drive further efficiency gains.

In addition, there does not seem to be an understanding that road and rail transport require enormous infrastructure where large amounts of land have to be cleared or removed from agriculture to make way for the tracks and the asphalt.

How does the government measure the impact of road/ rail corridors compared to airports, particularly during the period that these corridors are being laid down? This is not a criticism of rail or road but a challenge to government to do the analysis and acknowledge aviation’s relatively light emissions footprint. Rather than tax it further, how about some incentives to develop the industry? If the government is serious about assisting regional aviation to become even cleaner it might look at the current depreciation tax rates applying to aircraft purchase. A significantly improved rate would enable operators to purchase newer, more efficient aircraft and retire older, higher polluting aircraft sooner. The current taxation review is an excellent opportunity for government to align its environmental goals with reasonable tax incentives to encourage industry behaviour that will further reduce emissions.

The industry will respond to such positive moves. The key message is add incentives, not more burdens.

On other matters, while there has been a slowing in the rate of loss of pilots and engineers from the regional airlines to the majors there remain great career opportunities for the young and notso- young wishing to pursue a career in regional aviation.

This is particularly true for instructors, current and prospective. Regional aviation is still growing and needs to replenish its pilot pool. Professional instructors are the people who set the standard and fundamentally underpin the industry. The shortage of instructors, particularly in regional areas, is becoming acute. Regional living has considerable advantages with much cheaper housing, a community atmosphere and, if you are prepared to get involved, more fun than you can imagine.

If you are interested in regional aviation in any role, call the RAAA national office or get in touch with your nearest regional airline or flying school. The environment remains very sound for a career with the regionals or in instructing.

 

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