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Taxation: Aviation

Volume 459: debated on Tuesday 1 May 2007

To ask the Chancellor of the Exchequer what assessment he has made of the risk of going into liquidation for small tour operators as a result of costs imposed by air passenger duty; and what steps he is taking to prevent this. (131432)

No formal assessment has been conducted. Some small tour operators have written to the Chancellor about the Government's decision, but I am not aware that any have expressed a risk of insolvency.

No provision exists to extend Government help in these specific circumstances and it is doubtful whether it would be legal to distinguish between operators in this way or to offer assistance to the sector under EU state aid rules.