HC Deb 15 June 1938 vol 337 cc206-7
26. Mr. Perkins

asked the Secretary of State for Air whether, when he considers the granting of a subsidy to Allied Airways, Limited, he will bear in mind the claims of 01ley Air Services, International Air Freight, Wrightways, and North Eastern Airways, all of which run services out of this country?

The Under-Secretary of State for Air (Captain Harold Balfour)

No, Sir. My right hon. Friend is satisfied that it is essential to maintain the principle affirmed by the Cadman Report and to avoid the further dissipation of the limited amount available for subsidies to external services by dividing it between an over-large number of companies. He cannot, therefore, hold out any hope that it will be possible to extend a subsidy to the three companies to which my hon. Friend draws my attention beyond the terms of the announcement made by my right hon. Friend on 18th May.

Mr. Perkins

Is the hon. and gallant Gentleman aware that I drew his attention not to three but to four companies?.

Captain Balfour

The hon. Gentleman referred to four companies but one of them runs internal services only.

Mr. Montague

Will the hon. and gallant Gentleman consider the possible desirability of bringing these companies into one bigger company in the same way as that suggested in the Hambling Report, in the original case of Imperial Airways?

Captain Balfour

The policy of the Air Ministry is to encourage amalgamations wherever possible, and we shall do everything we can to support that policy, but we cannot compel these companies to amalgamate.