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Nonsense that Gibraltar cannot subsidise its airport
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The Opposition considers that the decision of Monarch Airlines to withdraw the service to Manchester as from July is bad news for Gibraltar.
The Opposition are not in a position to comment on what has transpired between the Government and the airline because "we have not been privy to what has gone on between them. However, it is clear from what has been said in public that the perception of the airline which had been created by the Government is that they were not being listened to."
The Opposition says it notes that in its response to the airline, the Government has said that it is not prepared to directly assist airlines with their operating costs to Gibraltar, by subsidising their operations. The Government has added that in any case this would be in contravention of EU State Aid Rules.
EXTRAORDINARY STATEMENT
They see this as an extraordinary statement. "When Monarch commenced their operations to Gibraltar they were given what was tantamount to a Government subsidy through the Airline Assistance Scheme. This same subsidy was also extended to the only other carrier GB Airways," says a statement.
It adds: Indeed, many thousands of pounds were spent only a few years back in subsidising the operations of Regional Airlines to Casablanca which proved to be a complete flop. In the case of Regional Air Lines the Government was paying the airline to fly here on a virtually empty plane.
BUDGET PROVISIONS
Commenting on the matter, Shadow Minister for Trade and Industry with responsibility for Civil Aviation Dr Joseph Garcia said: ?In the budget for 2005/2006 there still remains a nominal entry in the Improvement and Development Fund under the heading ?Airlines, Ferry and Hotel Assistance Schemes?. In 2003/2004 the sum of ?184,287 was spent under this category and in 2004/2005 the sum of ?14,000 was spent. Presumably the principle would be same whether the subsidy was for a hotel, a ferry or an airline.?
He added: ?It is nonsense to suggest that Gibraltar cannot subsidise the use of its airport as this is not permitted in other EU airports, simply because for the EU we ceased to be an EU airport in 1987 when we were kicked out as a result of Spanish pressure. Whether the Government, as a matter of policy, wishes to subsidise flights or not is a different matter.?
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