HC Deb 04 December 2002 vol 395 cc801-2W
Mr. David Marshall

To ask the Secretary of State for Transport how much subsidy was paid to operators in the(a) aviation and (b) rail industries from public funds in each of the last five years. [84751]

Mr. Jamieson

The UK aviation industry normally operates free of Government subsidy. Assistance totalling some £39.7 million was paid to eleven UK airlines during winter 2001–02. In the aftermath of the terrorist attacks of 11 September 2001 the UK introduced a scheme of up to £40 million in financial assistance to UK airlines affected by closure of US and other airspace

The Scottish Executive pays a grant to Highlands and Islands Airports Ltd. (RIAL) which ensures the continuation of operations at the company's 10 airports. The Executive also pays a subsidy for lifeline air services on which Public Service Obligations have been imposed under EC Regulations.

Payments are as follows:

Year HIAL payments (£ million) Lifeline air services payments (£)
2001–02 19.45 986,200
2000–01 15.142 1,003,402
1999–2000 12.291 526,579
1998–99 6.179 533,871
1997–98 7 346,465

Subsidies to operators in the rail industry comprise Support for Passenger Rail Services, paid by the Strategic Rail authority to train operating companies (TOCs), and grants paid by passenger Transport Executives to Train Operating Companies which provide services in their areas. Payments are as follows:

Year Subsidy (£ million)
2001–02 1,721
2000–01 1,130
1999–2000 1,343
1998–99 1,533
1997–98 1,804