§ Mr. Carter-Jonesasked the Secretary of State for Trade what representations he has received from the Association of European Airlines regarding the increase in United Kingdom airport charges; if he will publish his reply; if he will indicate the effect of these charges on airlines, the travelling public and the balance of payments; and if he will make a statement.
§ Mr. TebbitThe association expressed its concern that proposals for increasing airport charges, particularly at Heathrow, exceeded inflation rates throughout Europe. I replied that the increase in the aviation security levy was needed to recover a deficit in the aviation security fund. So far as the charges made by the BAA were concerned I said that I was awaiting the final proposals but in considering them I would have regard to the need for the authority to operate so as to recover its costs and to achieve an adequate return898W on the capital investment required to handle the expected level of air traffic. The final proposals were received by my Department two days ago. Until we have had time to study them I cannot comment on their effect.