§ Mr. Staintonasked the Minister of Aviation how he expects the omission of aircraft from the new investment incentives, and the cancellation of investment 92W allowances therefor, to affect sales of new aircraft to independent United Kingdom operators and the home sales of light and executive aircraft; and whether he will make a statement.
§ Mr. MulleyThe changes in the system of investment incentives have been fully explained in the recent White Paper. They are primarily designed to stimulate investment in plant and equipment by manufacturing industries. The independent United Kingdom operators are treated in precisely the same way as the generality of other non-manufacturing industries; and purchases of aircraft are treated in the same way as purchases of other vehicles. Purchases of new aircraft by independent United Kingdom operators, and home purchases for business purposes of light and executive aircraft, will qualify for the 30 per cent. initial allowance.
Since investment allowances are only one of many factors involved in decisions to purchase aircraft it is not possible to give a realistic assessment of the effect of these changes on sales.