Transport (Wales) Bill

Clause 11 empowers the Assembly to provide financial assistance for air traffic services and airport facilities serving Wales. The amendment moved by the noble Lord would remove the restriction imposed by Clause 11(2) and allow the Assembly to provide financial support for air services and facilities, even where the service or facility in question could be provided without support. The Assembly is of the firm opinion that airports and air services have a vital role to play in Wales in improving accessibility, opening up new markets and encouraging inward investment. However, the Assembly would not only want to provide funding for those services and facilities when it is necessary to secure their provision. Obviously it would not wish to provide financial support for services and facilities which are commercially viable, and hence would be able to operate without the support from the public sector. The noble Lord, Lord Roberts, asked the other side of that question—if there was a wholly uneconomic route, to what extent would the Assembly be responsible for subsidising it? The answer is that an air service can be subsidised only under a public service obligation meeting certain criteria specified in European regulations. That would be the framework within which the Assembly would be subsidising an airline. There are very clear rules on that, and that would be the protection that I hope the noble Lord is looking for. With that, I hope he will be able to withdraw his amendment.