§ 2.48 p.m.
§ The EARL of KIMBERLEYMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what are the criteria under which import duty can be waived on imported aircraft; and whether these criteria would apply in current conditions to the Boeing 737 or the Douglas DC.9 aircraft.
Lord ORAMMy Lords, the Common Customs Tariff duty on mechanically propelled aircraft, other than helicopters, of an unladen weight exceeding 15,000 kg. is totally suspended until 30th June 1978. The only criterion for waiving the duty is the unladen weight. Since the Boeing 737 and Douglas DC.9 aircraft both weigh over 15,000 kg. this criterion is fulfilled.
§ The EARL of KIMBERLEYMy Lords, I thank the Minister for that somewhat satisfactory Answer. Can he also please state whether, in the event of one of those two types of aircraft being purchased, there would be duty to be paid on the spares for them?
Lord ORAMMy Lords, I think that I should need notice of that question, but I shall certainly look into it and let the noble Earl have a reply before we rise.
Lord PAGET of NORTHAMPTONMy Lords, can the noble Lord tell us how one tells whether an aircraft has been imported or has only just arrived?
§ Lord TREFGARNEMy Lords, has the noble Lord not announced some novel departure in this matter? Has it not been the case until now that the aircraft to which the noble Earl, Lord Kimberley, referred have been subject to duty unless a Treasury directive was issued? Is it not further the case that this Treasury directive requires inter alia that the aircraft shall not be used for domestic flights within the United Kingdom? Has the noble Lord been announcing some change in the policy?
Lord ORAMNot a recent change, my Lords. I think the system which the noble Lord has in mind was the system which applied before we harmonised with the Community arrangements in these matters. I think he will find that what I have said about the present arrangement is the outcome of our harmonising with the Community.
§ Lord TREFGARNEMy Lords, I am much obliged to the noble Lord for that clarification. But did he not also say that the present situation which he described is continuing only until the middle of next year, and is it not the case that the purchase referred to in the Question is likely to happen after that date? Is he satisfied that the arrangements which he has described will, in fact, continue after the middle of next year?
Lord ORAMMy Lords, there is no specific purchase referred to in the original 1976 Question, but I take the noble Lord's point that there are matters under consideration. He is right that the suspension takes effect until the second half of next year, but it is too early to say what would be the Government's attitude in a reconsideration of that matter.
§ The Earl of KIMBERLEYMy Lords, may I ask one more supplementary question? If, by chance, the suspension were ended on 30th June, would it not be extremely unfair to British Aerospace, which has an aircraft in the same category as these two which I have mentioned?
Lord ORAMMy Lords, I am sure that that aspect of the matter would be very much in the minds of the Ministers who were considering the continuation of the suspension.