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Air Passenger Duty

Volume 448: debated on Thursday 29 June 2006

To ask the Chancellor of the Exchequer if he will take steps to ensure (a) that funds raised from the UK air passenger duty are separately identified when they are redeployed and (b) that a greater percentage of those funds is directed to the international finance facility. (81101)

The UK is committed to developing innovative financing mechanisms to support accelerated progress towards the millennium development goals, and has announced that it will hypothecate part of the existing air passenger duty to provide a long-term stream of finance to the International Finance Facility (IFF) and its pilot the IFF for Immunization (IFFIm).

The UK air passenger duty revenue is published on an annual basis at: cfm?task=airpass. The UK contribution to IFFIm will average £71 million a year over 20 years. The UK contribution to the IFF will be determined when it is launched. With the IFF, the UK could reach the equivalent of the 0.7 per cent. ODA-GNI target, which could be achieved as early as 2008-09.