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| Tax concessions for Air Travel | ||
| The Secretary of State
for Transport (Mr. Alistair Darling): The national consultation [on airport expansion] ended on 30 June. We estimate that at least 300,000 responses have been received from across the UK. We are analysing all these and, as I have said, we will set out our decisions in the air transport White Paper later this year... Mr. Mark Lazarowicz (Edinburgh, North and Leith): When my right hon. Friend has a look at the 300,000 responses, will he bear in mind the fact that air transport in the UK alone benefits from some £7.5 billion of tax concessions each year? Will he consider the fact that if the concessions were phased out, that would reduce some of the pressure for airport expansion and provide additional financial resources for transport, of which I am sure that he would make good use? Mr. Darling: ... The Government have always made it clear that the aviation industry should be responsible for meeting its costs. However, my hon. Friend the Member for Edinburgh, North and Leith (Mr. Lazarowicz) will also be aware that the reason why air fares have reduced so dramatically is not so much because of taxation but because the no-frills carriers—the low-cost airlines—have stripped out much of the costs of selling their tickets. My hon. Friend might also be interested to know that unsurprisingly, people in London have the greatest propensity to fly, but those in Scotland are the second most likely to fly. |
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| 15th July 2003, Column 131-2 |