HC Deb 26 May 1999 vol 332 cc183-4W
Mr. Pendry

To ask the Chancellor of the Exchequer when the Government were first informed of the European Commission's intention to pursue infraction proceedings against the application in the United Kingdom of the domestic flight return-leg exemption from air passenger duty.[82638]

Mrs. Roche

The European Commission issued a Reasoned Opinion on 23 June 1998 in this matter.

Mr. Pendry

To ask the Chancellor of the Exchequer when he expects to make an announcement on the Government's response to the European Commission's infraction proceedings against the application in the United Kingdom of the domestic return-leg exemption from air passenger duty; and if he will make a statement. [82637]

Mrs. Roche

We are still considering how to respond to the European Commission's challenge to the domestic return-leg exemption.

Mr. Pendry

To ask the Chancellor of the Exchequer what supplementary revenue will be obtained from air passenger duty if the current domestic flight return-leg exemption from this duty were to be abolished. [82645]

Mrs. Roche

At current passenger numbers, and assuming no behavioural effects, it is estimated that the additional revenue from abolishing the domestic return-leg exemption would be in the order of £60 million.

Mr. Pendry

To ask the Chancellor of the Exchequer what representations he has received about the impact on accessibility to low-cost domestic air travel if the current domestic return-leg air passenger duty exemption were to be abolished. [82643]

Mrs. Roche

I have not received any representation on this particular issue.

Mr. Pendry

To ask the Chancellor of the Exchequer what estimate he has made of the rate of air passenger duty which would have to be levied on flights within the EU, should air passenger duty be applied to both legs of domestic return flights in the UK, to ensure the income to the Treasury from air passenger duty remains as forecast in the document Budget 99.[82644]

Mrs. Roche

The precise figure will depend on the proportion of domestic flights within the UK which contain a return leg. Depending on the proportion of return journeys, a rate of between £8 and £9 would be consistent with broad revenue neutrality if Air Passenger Duty were applied to both legs of domestic return flights. This estimate assumes current passenger numbers and no behavioural effects.