§ 68. Mr. Bowlesasked the Parliamentary Secretary to the Ministry of War Transport what resources the railway companies have which would be sufficient to face the loss that would fall upon those companies if they ran air lines; and what is the source from which such resources derive.
§ Mr. Noel-BakerThe Railway Companies' Air Transport Acts of 1929 authorise the companies to use their funds for air services, and would permit the use of undistributed profits to meet any (initial) loss in which the provision of such services might result.
§ Mr. BowlesWill my hon. Friend tell the House what these reserves amount to, because on 12th October, in another place, a certain Noble Lord referred to these reserves as being quite capable of sustaining losses over many years, if the railways companies chose to run air lines?
§ Mr. Noel-BakerI will not commit myself to the figure now, but if my hon. Friend will look at the figures of the published accounts of the railway companies, he will see that they have large funds for this purpose.
§ Mr. BowlesThen, why should they rely on Government funds?
§ Sir O. SimmondsIs not the question based on a wrong hypothesis, and is it not the case that private air lines, through their efficiency, are run at a profit and that it is State air lines that are run at a loss?
§ Mr. SpeakerI think that that is another question.