Friends of the Earth International * CEE
Bankwatch Network
Monday 2nd February
B.A.A. profits fly in the face of Euro
rules
British Airport Authority (BAA), which has
announced today an operating profit of GBP
500 million, is being unfairly funded by EU
taxpayers via the European Investment Bank
(EIB) [1], according to a coalition of
environmental and social justice
organisations.
The coalition which includes Friends of
the Earth, MEPs, respected academics and
grassroots organisations has written to the
EIB calling on it to stop financing the UK's
massive airport expansion plans which breach
its own investment and environmental
policies. [2]
The EIB has a remit to fund projects that
are environmentally sustainable and
economically sound developments. [3] However,
the EIB has provided almost a billion euros
worth of loans in the last five years to BAA,
a key player in the aviation industry which
is the fastest growing source of CO2, the
chief contributor to climate change.
The EIB is also breaching its own statute
by lending money to projects where funds are
available from other sources on reasonable
terms. BAA admits that it could easily have
got the funds it received from the EIB
elsewhere [4]
EU taxpayers, including those from the UK,
fund the EIB, yet the UK government says that
the aviation industry receives no government
support [5]. The bank provides virtually
interest free loans and has provided finance
for BAA projects like the expansion of
Heathrow and Gatwick airports for many
years.
Friends of the Earth EWNI Aviation
campaigner Richard Dyer commented,"This is
another case of taxpayers' money being used
to prop up the hugely polluting aviation
industry. The EIB should scrap the handouts
it gives to BAA and other airport developers
immediately."
Friends of the Earth International finance
institutions campaigner Hannah Ellis
commented, "Current EIB financing of the
aviation industry is not only in breach of
European Union principles but also the EIB's
own statute. The bank should only invest in
projects that truly do contribute to 'social
and economic cohesion' in the European Union,
as per the EIB's original mandate."
Magda Stoczkiewicz, who leads the EIB
campaign for CEE Bankwatch Network and
Friends of the Earth International adds, "The
research we have done recently shows that the
EIB has provided more than EUR 7.5 billion
loans to the aviation sector in the last six
years. We believe that the EIB, as a public
bank, should be promoting public benefit
instead of flying with big business."
Notes:
1. The EIB is the non-profit making
lending bank of the European Union, backed by
EUR 150 billion of member states
contributions. See
http://www.foei.org/ifi/eib.html for more
information.
2. A copy of the letter is available from
Friends of the Earth EWNI media unit.
3. The EIB's Statute sets out the legal,
financial and administrative framework for
the Bank's activities, established by the
Treaty of Rome in 1958. See
http://www.eib.org/Attachments/EIBstat_en.pdf
4. Alan Jackson, Treasury Manager at BAA,
interview April 2003.
5. The majority of UK airports operate on
a commercial basis whether privately or
publicly owned, the exceptions are airports
receiving Objective 1 & 2 money and small
airports assisted by local councils such as
those in the Scottish highlands and islands -
DfT Aviation White Paper Dec. 2003
Contact:
Richard Dyer: Tel +44 (0)7940 850328
Hannah Ellis: Tel +44 (0)7952 876929/Media
office +44 20 7566 1649
(24 hour)
Magda Stoczkiewicz: Tel +31 (0)652 41 03
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