Archived press release

BAA profits fly in the face of Euro rules

2 February 2004

Airport operator BAA's 1.54bn increase in revenue (3.5%), announced today, has been unfairly funded by UK tax payers via the European Investment Bank (EIB), according to a coalition of 21 environmental and social justice organisations.

The coalition which includes the London School of Economics, the Hillingdon Law centre, Friends of the Earth, MEPs and respected academics has written to the European Investment Bank calling on it to stop financing the UK's massive airport expansion plans which breach its own investment and environmental policies.

The EIB has a remit to fund projects that are environmentally sustainable and economically sound developments but has provided virtually a billion Euros worth of loans in the last 5 years to BAA, who are a chief 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.

UK taxpayers fund the EIB, yet the Government says that the aviation industry receives no Government support. 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 Aviation campaigner, Richard Dyer commented:

"This is another case of taxpayer's 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."

• The EIB is the non profit making lending bank of the European Union backed by 120billion Euros of member state contributions. See www.foei.org/ifi/eib.html for more information.

Coalition members:

• LSE (London School of Economics) Environmental Initiatives Network
• Professor John Whitelegg, Stockholm Environment Institute
  Union Europeene Contre les Nuissance des Avions
• Hillingdon Law Centre
• Friends of the Earth England, Wales & Northern Ireland
• Friends of the Earth International
• Caroline Lucas MEP
• Leveg Munkacsoport / Clean Air Action Group
• HACAN ClearSkies
• The Interessengemeinschaft zur Bekmpfung des Fluglrms (IGF) e. V.
• ETK - Nature Protection Club of Eotvos Lorand University, Hungary
• Milieudefensie (Friends of the Earth Netherlands)
• Centre for Transport & Energy, Czech Republic
• ASBL Bruxelles Air Libre Brussel VZW
• National Coordinator for CEE Bankwatch Network
  Center for Environmental Public Advocacy
• Gatwick Area Conservation Campaign
• Polish Green Network
• Green Federation Gaja
• Centrum Pro Dopravu a Energetiku
• Amici della Terra (FoE Italy)
• A SEED Europe
• The EIB's Statute sets out legal, financial and administrative framework for the Bank's activities; established by the Treaty of Rome in 1958. http://www.eib.org/Attachments/EIBstat_en.pdf
• Alan Jackson, Treasury Manager at BAA in interview April 2003
  "The great majority of airports in the UK are operated 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

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Published by Friends of the Earth Trust