§ Chris GraylingTo ask the Chancellor of the Exchequer, pursuant to the answer of 5 December 2001,Official Report, column 328W, on the airline industry, if he will extend the scheme beyond January. [23237]
§ Mr. Andrew SmithThe UK replacement insurance scheme for the aviation industry has been extended until 22 January 2002, in line with European guidelines. EC 31W guidelines say that Government schemes may run until the end of January, with a final deadline for schemes of the end of March 2002.
The Government have no intention of intervening permanently in the aviation insurance market. The temporary Government scheme was set up with the objective of encouraging the return of commercial insurance at an appropriate market rate. The scheme will be withdrawn as more commercial insurance becomes available.