§ Mr. Onslow
asked the Secretary of State for Trade whether he has yet reached a decision on the rate of the aviation security levy for 1981–82 and on the proposals for a two-part levy and for a reduction in the exemption limit.
§ Mr. Tebbit
I have decided to leave the levy at its present rate of £1.60 for the time being. The rate will be reviewed in May 1981, and if necessary it will be increased on 1 November 1981 by an amount sufficient to ensure that costs for the financial year 1981–82 are recovered during that year. I have decided to reject the proposals for a two-part levy and for a reduction in the exemption limit: a two-part levy extending the levy to all-cargo aircraft from the anti-terrorist measures financed from the aviation security fund; and I am satisfied that the additional burdens imposed by both proposals would have been out of proportion to the additional revenue they could reasonably have been expected to generate.