Fed: Airlines angry Ansett tax set to stay

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Fed: Airlines angry Ansett tax set to stay

CANBERRA, April 2 AAP - Airlines have lashed out at the federal government for keepingthe $10 Ansett ticket levy, saying travellers should not be slugged for company collapses.

The federal government imposed the levy on airline tickets after Ansett collapsed inSeptember 2001 to recoup money it had paid for workers' entitlements.

So far the levy has collected about $210 million, costing passengers $11 million a month.

Cabinet yesterday decided to keep the levy indefinitely while a court case to determinethe future payout of entitlements is pending.

But the airlines and tourism industry, which had pushed at least for the levy's suspension,said the government was clearly building up a slush fund.

"The fact that there has been no suspension would suggest the government is tryingto build up a slush fund at the travelling public's expense," Virgin Blue's head of commercialDavid Huttner said.

"We are concerned the government is ignoring or failing to comprehend the tremendousdamage being done by levies, taxes and increasing airport charges and the negative impactit would have, not only on tourism but on the economy as a whole."

Board of Airlines Representatives executive director Warren Bennett said travellersshould not be forced to pay for workers' entitlements as a result of company collapses.

"We've objected to the tax from the start," Mr Bennett said.

The Tourism Task Force said the decision to keep the tax was disappointing but understandable.

AAP sal/apm/jlw

KEYWORD: ANSETT LEVY DAYLEAD