THE TERROR TAX JOHN, LORD TAYLOR OF WARWICK, 30 NOVEMBER 2014
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November 1974 is a date etched in my memory.
killed 2,996 people and 11 unborn babies. Aviation is in reality more
I was a university student, enjoying a drink with
secure today than in 2001. But this has come at a great price in
a couple of friends in Birmingham’s Mulberry
terms of passenger convenience and industry costs. Airlines and
Bush Pub. By the time I got home I saw the news on the TV. Less
their passengers pay a security bill which has ballooned to over
than an hour after we had left the pub, it had been blown up by an
$10 billion. Not surprisingly, in the aftermath of 9/11, air passenger
IRA bomb. The nearby Tavern pub was also blown up. 21 people
traffic declined and by 2003 US airlines had laid off 14.6% of its
were killed and 182 injured. Although the IRA threat is thankfully
employees. Swissair and Sabena airlines went bankrupt, as the 9/11
now historic, terrorism is still very much part of our lives.
shock pushed financially weaker carriers into collapse.
Last week was Anti-Terrorism week. To mark this, a number
But it is the individual stories of financial distress caused by
of keynote speeches were made, notably by the Home Secretary
terrorism, that really bring the impact home. One young woman
Theresa May and the Prime minister, David Cameron. There is no
lost her husband in the World Trade Centre. She had found out 2
doubt that terrorism is one of the biggest challenges of the 21st
weeks before the attacks, that she was pregnant. In the month after
century. The most significant attacks have been associated with so-
September 11, she received $450 dollars, hardly enough to cover
called Radical Islam. They include September 11, 2001 (known as
her mortgage, car payments and other expenses. Thousands of
9/11 ) in America and the London bombings 7 July 2005 (known as
people lost their access to public services, because major computer
7/7) . Terrorism in countries as diverse as Pakistan, Nigeria, Indonesia,
links were destroyed with the Towers.
Afghanistan, Iraq and Syria is a danger to political stability and
Insurance companies had never considered terrorism when
hampers economic growth. The effects of terrorism on Government
writing policies. Now every commercial property and public works
policies and economic budgets are well documented. But what is far
project must factor this risk in. Inevitably this had led to an increase in
less researched and understood are the financial effects of terrorism
premiums. As to risk, it is also important to recognise the vulnerable
on the ordinary citizen.
position of families of “first responders”, who by nature of their
The legacy of 9/11 is probably felt most in airport security. Four
employment are more at risk when terrorism occurs. This would
commercial aircrafts were highjacked by the Islamic group al-Qaeda
include the families of firefighters, police or emergency medical
and crashed into the twin towers of the World Trade Centre, the
workers. In America there is a specific federal programme which
Pentagon and a remote field in western Pennsylvania. The attacks
awards such families a lump sum payment. A spouse of a fallen New
6 | Endeavour Magazine