§ 37. Mr. W. R. D. Perkinsasked the Assistant Postmaster-General in what way the rate paid by his Department for the carriage of air mail varies from the international rate agreed by the Universal Postal Union.
§ Mr. GammansThe internationally agreed rates are maximum figures and apply only where a postal administration uses a foreign air line. So far as first-class mails of United Kingdom origin are concerned, rates paid for the use of foreign carriers vary from 2.43 to 5.25 gold francs per tonne-kilometre, according to the route and carrier. The rates paid to British carriers vary from the sterling equivalent of 2.9 to 5.32 gold francs per tonne-kilometre.
§ Mr. HobsonCan the hon. Gentleman say how that rate compares with the internal rate pound for pound per cargo?
§ Mr. GammansYes. It is, so far as B.O.A.C. is concerned, five-and-a-half times the freight rate, and so far as B.E.A. is concerned, two-and-a-half times the freight rate.
§ 38. Mr. Perkinsasked the Assistant Postmaster-General what rate is paid to British European Airways for mail on international services and on internal services respectively; and how these two rates compare with that paid to foreign airlines.
§ Mr. GammansI assume that my hon. Friend refers to letter mails of United Kingdom origin. The rate paid to British European Airways is 132 pence per long ton/mile for international services; the rate paid to foreign air lines similarly to European destinations, is 3.0 gold francs per tonne-kilometre, equivalent to 137 pence per ton-mile. On internal services, British European Airways are the sole carrier; the rate paid varies on different routes, but is based on the freight rate, plus 33⅓ per cent.
§ Mr. PerkinsIs the Minister aware that if British European Airways received payments equal to that paid to their foreign competitors by the Post Office, their revenue would be increased by over £60,000 a year? Why is this preference given to foreign airlines over British airlines?
§ Mr. Ernest DaviesDoes the Assistant Postmaster-General realise that subsidising British airlines is consequently subsidising the Post Office?
§ Mr. F. BeswickDoes the hon. Gentleman also agree that whereas this rate for air freight is higher than that for ordinary cargo, a priority is required for air freight which does not apply to ordinary cargo?
§ Mr. GammansAs indicated by these supplementary questions, there is very strong controversy on the question of whether or not British European Airways are subsidised by the Post Office or vice versa.
§ Mr. Ness EdwardsIs it not a fact that B.E.A. are making a profit on the present rates?
§ Mr. PerkinsIn view of the very unsatisfactory nature of the reply, I beg to give notice that I shall raise the matter on the Adjournment.