To ask the Secretary of State for Transport whether the European Commission proposals for the third stage of air liberalisation in Europe are intended to apply to Gibraltar airport; and if he will make it his policy that any agreement based upon the proposals should include Gibraltar.

The Commission's proposals have not yet been transmitted to the Council. We understand that they envisage the continued exclusion of Gibraltar until the airport agreement is implemented. We shall consider the terms of the proposals fully in due course and we expect that they will be extensively discussed by the Council of Ministers. We continue to believe that the implementation of the airport agreement represents the best way forward for Gibraltar.