§ Mr. BestTo ask the Chancellor of the Exchequer what recent discussions he has had with(a) the EU and (b) other international partners on reducing or eliminating tax concessions received by the aviation industry; and if he will make a statement. [168776]
§ John HealeyThe Government have on-going discussion with the European Commission, other EU member states and with international bodies, such as the International Civil Aviation Organisation (ICAO), on the tax treatment of aviation and more generally on the most effective way of reducing the environmental impact of aviation.
The Government remain committed to applying the 'polluter pays' principle to civil aviation to reduce its environmental impact. Specific initiatives are set out in the Future of Air Transport White Paper published on 16 December 2003, including the aim of aviation being part of the EU Emissions Trading Scheme from 2008. The Government have been pursuing this with the European Commission and EU member states. At the meeting of ICAO's Committee on Aviation Environmental Protection in February 2004 the UK supported the use of economic instruments such as emissions trading to tackle the climate change impact of aviation. In this year's Budget we announced that we will discuss with the European Commission options for introducing greater flexibility in European legislation regarding the application of economic instruments to aviation.