HC Deb 19 December 2001 vol 377 cc525-6W
Miss McIntosh

To ask the Secretary of State for Transport, Local Government and the Regions what representations he has received on the Commission authorising EU Governments(a) to pay compensation for the four-day shutdown of US airspace in the absence of insurance cover and (b) to pay for additional security to meet public policy objectives; and if he will make a statement. [22780]

Mr. Jamieson

We have received various representations from the air transport industry on these issues. Having had regard to these views, we have accepted that the circumstances are exceptional and therefore merit exceptional assistance. We announced on 13 December that we had decided to provide up to £40 million of financial assistance to compensate airlines for losses arising directly from the 11 September terrorist attacks in the United States. Qualifying airlines have been invited to submit claims under this scheme and a copy of the scheme conditions has been placed in the Library. Assistance under this package is in conformity with Commission guidelines on state aid, and we have notified the Commission of our intention accordingly.

In addition, the Government continue to underwrite, on a temporary basis, third party war risk insurance for UK airlines and service providers to the airline industry. The initiative has been extended until 23 January 2002.

John Barrett

To ask the Secretary of State for Transport, Local Government and the Regions (1) what representations his Department has received from(a)airline companies, (b) providers to the airline industry, (c) hon. and right hon. Members and (d) others requesting financial support other than the underwriting of third party war insurance to be given to airline companies; [22965]

(2) what financial support the Government plan for UK airline companies following the events of 11 September; [23083]

(3) what discussions he has had with airline companies regarding Government financial support since 11 September. [23084]

Mr. Jamieson

I refer the hon. Member to the answer given by my right hon. Friend the Secretary of State for Transport, Local Government and the Regions to my hon. Friend the Member for Chorley (Mr. Hoyle) on 13 December 2001,Official Report, column 1013W.