Aviation Minister (Robert CouttsMP): I am tabling this
statement for the benefit of hon. members to bring to their
attention spend under the Industrial
Development Act 1982 (“the act”).
On 24 November (2020) the government announced the
introduction of the Airport and Ground
Operators Support Scheme (“the scheme”) with the
intention of supporting airports and ground handlers who
have experienced the impact of COVID-19 on their business
whilst maintaining high levels of fixed costs during the
2020/21 financial year. The aim was to open the scheme in
January (2021) and ensure grant payments were made to
eligible businesses by the end of the financial year. Grant
payments would be made using powers in sections 7 and 8 of
the act.
Section 8(8) of the
act states that financial assistance for any one
project shall not exceed £30 million, except so far as such
excess has been authorised by a resolution of the House of
Commons. The need to act and ensure that support was
provided promptly meant that the government were previously
unable to seek such authorisation from the House of
Commons.
Section 8(9) of the
act provides that the Secretary of State shall lay a
statement concerning the financial assistance before each
House of Parliament if they are satisfied that the payment
or undertaking to pay financial assistance in excess of £30
million was urgently needed and it would have been
impracticable to obtain the approval of the Commons House
of Parliament by way of a resolution.
The need to provide urgent support to airports and ground
handlers who play a vital role in the infrastructure of the
country made it impracticable to seek authorisation by way
of a resolution, for payments under the scheme in excess of
£30 million and I am therefore tabling this statement. The
details of the spend on the scheme, which opened for
applications at the end of January, are:
|
Total of scheme grants
|
Commercial airports
|
Ground handling operators
|
|
£86,925,171.00
|
£65,075,462.00
|
£21,849,709
|
The government remains committed to supporting the sector
and has recently announced that the scheme will be renewed
for the first 6 months of the financial year 2021/22.
Consent for the use of powers in sections 7 and 8 of the
act for the renewed scheme will be sought separately.
