WRITTEN QUESTION E-2338/03 by Christopher Heaton-Harris (PPE-DE) to the Commission. Alcoholic consumption on flights.
Date: 2003-07-16
Institutions: European Parliament, Provisional data
Subjects: air transport, alcoholic beverage, intra-EU transport, transport statistics, youth violence

6.3.2004

EN

Official Journal of the European Union

C 58 E/157

Answer given by Mr Bolkestein on behalf of the Commission

(12 August 2003)

According to the basic principle of the VAT system, VAT applies to all transactions in the production or
distribution chain from which the VAT charged directly on upstream transactions has been deducted. The
right to deduct provided for in Article 17 et seq of the Sixth Directive (1) forms an integral part of the VAT
system and cannot be restricted.

Nevertheless the principle of the right to deduct VAT is subject to a derogation under Article 17(6) of the
Sixth Directive allowing Member States to retain all the exclusions provided for under their national laws
at the time the Sixth Directive came into force.

On the basis of this provision Member States may apply limitations to the right to deduct VAT on
expenditure which is not strictly of a business nature, and in particular that on accommodation, food and
drink and the use of passenger cars.

In June 1998 (2) the Commission presented a proposal for a Directive approximating the rules governing
the right to deduct VAT on expenditure of both a business and private nature. This concerns expenditure
on passenger cars, accommodation, food and drink, luxury goods, leisure and entertainment to which
Member States apply very divergent rules as regards the deduction of VAT. However, unanimous
agreement has not yet been reached on the proposal within the Council.

Article 17 of the Sixth Directive is a general provision applying to all taxable persons subject to the
normal VAT arrangements. There is no link at Community level between deduction of VAT and taxation
of earnings and there are no plans to create to such a link.

(1) Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States
relating to turnover taxes (cid:1) Common system of valued added tax: uniform basis of assessment, OJ L 145,
13.6.1977.

(2) OJ C 219, 15.7.1998.

(2004/C 58 E/170)

WRITTEN QUESTION E-2338/03

by Christopher Heaton-Harris (PPE-DE) to the Commission

Subject: Alcoholic consumption on flights

(16 July 2003)

A number of constituents have raised concerns over how the English are portrayed in Europe. Their
concerns arise mainly from experiences of young people using cheap flights to go abroad for stag and hen
weekends.

Are any statistics or data being collected on violent incidents on flights between European capital cities
arising from or connected with alcohol consumption?

Statistically or anecdotally, is there any apparent association between any increase in violent incidents and
the increasing availability of cheap flights?

What are the statistics for the number of people denied boarding because of alcoholic consumption?

Answer given by Mrs de Palacio on behalf of the Commission

(11 September 2003)

The Commission is not collecting, at present, data on violent incidents during flights between European
airports nor during flights departing from European airports to third countries. The International Civil
Aviation Organisation (ICAO) states that no systematic study of the problem has been carried out so far, as
airlines are mostly focussed on managing the occasional incident rather than on its prevention.

C 58 E/158

Official Journal of the European Union

EN

6.3.2004

As the Commission is not gathering data on this kind of incidents, it cannot state any correlation between
the increase in violent incidents and the increasing availability of flights at low prices. It is to note,
however, that the International Air Transport Association (IATA) has confirmed that incidents of air rage
have increased by almost 500 % in the last half of the 1990s. According to IATA, this increase is due to
more people being able to travel as compared to the past where air journeys were for the privileged few.

The link to only cheap flights being used by youngsters seems not relevant, as air rage is the product of
several
factors, which unfortunately occasionally collide. Reasons may include excessive alcohol
consumption combined with a feeling of helplessness, both within the cabin and through being exposed
to long delays, as well as general psychological feelings of lost control due to the stress and anxiety certain
people feel when flying. Surprisingly, alcohol is not the main cause of air rage, with drunkenness only
accounting for 25 % of all incidents. Instead anxiety through delays, cramped conditions and restrictions
such as banned smoking are the leading causes.

The European airline companies have not brought to the attention of the Commission any data on
(general) denied boarding nor denied boarding because of over-consumption of alcohol. The only figures
available to the Commission are those included in the proposal for a Regulation of the Parliament and of
the Council establishing common rules on compensation and assistance to air passengers in the event of
denied boarding and of cancellation or long delay of flights (1).

(1) OJ C 103 E, 30.4.2002.

(2004/C 58 E/171)

WRITTEN QUESTION E-2339/03

by Ilda Figueiredo (GUE/NGL) to the Commission

(16 July 2003)

Subject: Relocation of the American Tool company away from Albergaria-a-Velha

The multinational company American Tool has a factory in Albergaria-a-Velha, where it produces saws of
various types and other cutting tools. On 27 June 2003 it notified its workforce that it intends to close
down its operations in Portugal with effect from September, to which end it has already launched the
process which will result in the collective dismissal of all 74 of its employees.

In a letter to those employees the company has cited ‘reasons relating to technology and to the current
economic situation’ as grounds for closing its factory in Albergaria-a-Velha and relocating part of its
production to Denmark.

American Tool’s announcement has come as a complete surprise, since the company and the group to
which it belongs were not known to be in financial difficulty. In addition to its factory in Denmark, the
group has several plants in other EU countries, in particular Spain and Italy.

Would the Commission say whether or not the company has received EU support and, if so, how much?

Supplementary answer
given by Mrs Diamantopoulou on behalf of the Commission

(8 October 2003)

Following communications between the Commission and the Portuguese authorities, the latter confirm
that the company in question has never received assistance from the European Social Fund or from other
Community sources.