Mr President, I should firstly like to express my thanks for the cooperation I received in the preparation of this report, not only from the Commission but also from colleagues on the committee, where we were involved in extremely good cooperation in bringing forward compromise amendments. These have strengthened the report to the best interests of the industry and those involved in it. We should all be aware that this report came about, to a large extent, as a result of the aeroplanes flying into the Twin Towers in New York in September 2001. It is an attempt, to some extent, to restore confidence in the insurance market in the European Union. Hopefully that confidence will return. I have to say at the outset that this is not necessarily a major problem for what we would term the 'major airlines', that is, airlines such as Lufthansa, Air France, British Airways and the other big boys. They do not have a problem with this. It is the small, regional airlines that will be most affected - indeed not only small, regional airlines, but aircraft training schools and people who fly their own small planes, etc. They are the people who, to a large extent, could feel they face the greatest problem. There could be an added cost to them. That is something we want to try to avoid. As I said, I tried to achieve a consensus with the compromise amendments that we came forward with in committee. I feel we have achieved this. We have introduced three extra categories. These categories allow for greater flexibility and stability in the smaller aircraft area. We also have to be aware of the substantial support given to the industry in the United States. The US Government has been a very strong supporter of its industry, especially since 11 September, and continues to be so. We must not allow our industry in the European Union to place its operators at any further disadvantage. By sticking to the Montreal Convention and the ECAC figures I hope we have been able to find and bring forward a balanced report that will hopefully find a way forward. There are still some areas of concern. We debated them in committee. Mrs Foster brought forward a couple of amendments. She has concerns about the overflying of European Union airspace. That is something that she is right to continue to develop. We have to understand what this means and how it is going to be controlled. The other question is one we really must address between first and second readings – and I ask the Commission to take this on board – is that of an impact assessment, another issue raised in committee. We should return to that at a later stage. We have to know what the cost and effect, the damage or the benefit will be to those who fly, be it as a hobby, on business or for any other reason. We should be prepared to take time to make that assessment. It is not in the interests of the European Union to bring in legislation that will put people at a disadvantage and make the European Union look like kill-joys. That certainly is not my intention. I will continue to defend the most vulnerable in this field – the small operators and those who enjoy flying as a sport. In committee I met with many interests in the industry. I also met with the insurers. It is amazing that in the European Union we only have two or three companies or people providing insurance for aircraft. There is very little competition in this field. It is right for us to encourage competition but the timing, elements and basics have to be right. We have to ensure that we have a proposal that will encourage others into this industry and bring greater competition. It is right to encourage and prepare for those conditions. Hopefully, very soon, we will be able to return to a more stable market.

Political group: PPE-DE