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THE new Balearic Islands government has ruled out repaying eco-tax to holidaymakers following its decision to scrap the charge from November 1.

Speaking on a visit to London this week, tourism minister Joan Flaquer said the vast majority of the money raised from the controversial tax had already been spent by the islands’ outgoing socialist rulers.

“This tax has been a disaster,” he said. “Worst of all is the fact much of the cash has been wasted. Rather than being spent on environmental projects, it has disappeared.”

Flaquer, and new tourism director-general Eduardo Gamero, claimed the tax was expected to raise 60 million euros each year, but only 35 million euros was collected in 2002.

“They have bought 140 properties and sometimes paid three times the market rate for them,” blasted Gamero. “It is a mystery. People can make up their own minds why.”

Despite the political scandal, Gamero insisted the new centre-right Popular Party was committed to improving the environment, but would pay for projects using money from the Spanish government and the private sector.

Flaquer claimed the introduction of the eco-tax had devastated Balearics tourism, forcing up prices for its core UK and German markets.

“In 1999 our economic growth was 7%, making us the leading destination in Europe. Now unemployment is rising and we have lost tourists. Clients should not pay a tax to come here. We want to spread this message to operators.”