§ Mr. StunellTo ask the Secretary of State for the Environment, Transport and the Regions what advice his Department has given to UK airlines with regard to the tax on aviation fuel recently imposed by the Norwegian Government [69705]
§ Ms Glenda JacksonThe Department has given no formal advice to UK airlines about the aviation fuel tax introduced by Norway on 1 January 1999. However, in conversations about the tax with UK airlines operating to Norway, DETR officials confirmed that the tax appeared to breach the UK/Norway Air Services Agreement, signed in Oslo on 26 January 1979, which exempts aviation fuel for international flights from tax. Officials wrote to the Norwegian authorities on 4 January drawing attention to this apparent breach and asking them to rescind the tax. I understand that the Norwegians are currently considering the position, in the light of this and other similar representations received.
In principle, the Government are in favour of an aviation fuel tax, but believe this should be agreed at international level. Action by individual states or by 308W groups of states would infringe existing international agreements, distort airline competition and could have environmental disbenefits.