HC Deb 17 March 1982 vol 20 cc109-10W
Mr. Grimond

asked the Secretary of State for Trade what steps the Government intend to take to reduce the charges at Sumburgh aerodrome.

Mr. Sproat

As a result of representations made by the Shetland Islands council and taking account of discussions held under the chairmanship of my noble Friend the Minister of State at the Scottish Office, I have decided that the investment in terminal and other facilities at Sumburgh provided for oil-related traffic should be written down by £13.2 million. To the extent that the authority cannot finance the write-off from within its own resources, my Department will be making a once and for all payment by way of grant in aid which will be met from within the approved supply Estimates.

The effect of this write-down on the coming year's level of charges which apply specifically to oil-related traffic will be to allow the Civil Aviation Authority to maintain these charges at their current level. Without this write-down, the charges would have increased very substantially.

It will not be possible for charges to be reduced because this would result in the CAA not recovering its costs. The level of charges reflects the declining use made of the facilities by the oil operators. I ought to emphasise that the operators have offered no commitment that any significant proportion of traffic would return if charges were actually reduced.