HC Deb 01 November 1932 vol 269 cc1604-5
28. Mr. LOUIS SMITH (for Captain ERSKINE-BOLST)

asked the Postmaster-General whether he is aware that in calculating the fees charged for letters sent by air-mail insufficient allowance is made for the fact that no transport service is provided in respect of the normal charges of1½ and 2½d. which are made in addition to the air-mail fee; and whether he will consider abolishing such additional charges in order to encourage the deevlopment of commercial aviation?

Sir K. WOOD

I would refer my hon. and gallant Friend to the reply given yesterday to the hon. Member for Hallam (Mr. L. Smith).

Mr. SMITH

Will the Postmaster-General give this matter further con- sideration? Would not the revenue increase if the charges were more equitable?

Sir K. WOOD

If my hon. Friend will refer to the answer which I gave yesterday, he will find that I said: The air mails to practically all foreign countries outside. Europe and a considerable proportion of the air mails to European countries are conveyed for part of their journey by rail and steamboat and have to carry the same transport charges as ordinary letters."—[OFFICIAL REPORT, 31st October, 1932; col. 1446, Vol 269.]

29. Mr. CRAVEN-ELLIS

asked the Postmaster-General whether, in view of the fact that British commercial aviation is being hampered by the high fees and other restrictions imposed by the Post Office, he will consider setting up a committee to inquire into the matter and make recommendations as to how in the public interest development of commercial aviation may be best promoted?

Sir K. WOOD

My hon. Friend appears to he under some misapprehension. The fees charged by my Department are not more than sufficient to meet the costs and compare favourably with those charged by foreign post offices; since last year the air mails carried by British machines have increased by 30 per cent., and the total air mail carried from this country by 17 per cent. The total air mail traffic has doubled itself in the last three years. I do not therefore propose to adopt my hon. Friend's suggestion.

Mr. CRAVEN-ELLIS

May I ask if the Post Office profits, arising out of Air Services, are to any extent used for subsidising foreign Air Services?

Sir K. WOOD

No, Sir; I made that plain yesterday.

Mr. CRAVEN-ELLIS

In that case, may I ask how the £8,000 difference between the profit arising out of British Air Services and the £5,000 arising out of Foreign Air Services is made up? There is a difference of £8,000. The correct profit from Air Services—[HON. MEMBERS: "Speech!"]—for the Post Office is only £5,000.

Sir K. WOOD

I am afraid that I cannot follow my hon. Friend's arithmetic, but perhaps he had better go into the matter with me in private.