Key to lean on visitor over UK airport tax

Prime Minister John Key will use a visit by British Foreign Minister William Hague to try to reduce hefty departure taxes of up to $355 for passengers heading to New Zealand.

There are fears the new departure tax forcing business-class passengers on flights to New Zealand to pay $355 and economy passengers about half that will reduce tourist numbers and undercut attempts to get people to visit for the Rugby World Cup.

The tax, a form of climate-change levy, is based on flight distances and is higher for places farthest from Britain.

Mr Hague makes his first visit to New Zealand next week with Defence Secretary Liam Fox and military chief General Sir David Richards.

Yesterday Mr Key, who is also the Tourism Minister, said he would take the chance to follow up on his previous objections to the tax, which was introduced by the previous Gordon Brown-led Labour Government. Mr Hague is understood to be more sympathetic to New Zealand's objections.

Mr Key is concerned about the impact on the number of tourists visiting New Zealand - a market already hard hit by the global recession. He is also worried other countries might follow suit.

Last year, Foreign Minister Murray McCully said Mr Hague had a more flexible stance on the tax than the Brown Government and he was hopeful of some action. He had concerns it would undercut efforts to encourage British visitors for the Rugby World Cup.

Mr Key said he expected to visit Britain to meet Prime Minister David Cameron in March or April. He is likely to try to make the trip coincide with the April 29 wedding of Prince William and Kate Middleton - although he said he did not yet know if he would be invited.

Mr Key said the ministers would also discuss Afghanistan. The decision on extending the deployments of the provincial reconstruction team and the SAS is one of the first issues facing the Cabinet this year.

Last month Mr Key told the Herald he was revising plans to withdraw the military team over five years and replace it with civilian experts. He said he was no longer convinced the numbers could be reduced so quickly.

A decision on the SAS was also imminent. Its deployment ends in April and he said he was considering whether to renew it, given the need for SAS troops to help with Cup security.

Immigration issues would also be discussed.