HC Deb 24 October 1961 vol 646 cc746-7
Q9. Mr. Rankin

asked the Prime Minister if he will instruct the Ministers of Transport and Aviation to consider jointly in which sphere of overseas transport a subsidy from public funds would be most advantageously applied and to report to him accordingly.

The Prime Minister

No, Sir. I expect overseas transport services generally to operate without subsidies.

Mr. Rankin

Is the right hon. Gentleman aware that the Cunard Line has just declared that it proposes to make a complete reassessment of the organisation necessary to run the North Atlantic services? Does he not realise that this will involve the role to be played by aviation and the role to be played by aids of some sort or other; and must ultimately cover a wider area than the North Atlantic? Does he not think, therefore, that, in the national interest, the Government, through the appropriate Ministers, should also seek to make a similar reassessment?

The Prime Minister

The hon. Gentleman knows that very wide issues are very difficult to deal with by means of Question and Answer. As I said in my Answer, in regard to overseas transport services generally we would hope, broadly speaking, that they would be able to operate without a subsidy.

Mr. Rankin

I am sorry, Mr. Speaker, that I have raised an issue to which the right hon. Gentleman has obviously not given much thought. Could I ask him whether he would consider the matter again and whether, if I put down a Question in the new Session, he would have a fuller Answer for me?

The Prime Minister

If the hon. Gentleman puts down a Question, of course 1 always take special care to study what he says, and would do my best and answer it.

Mr. McMaster

Would my right hon. Friend the Prime Minister bear in mind that other countries subsidise their shipping and air transport; and that while it is very desirable that this country, in common with some other countries, should not subsidise, it is in the national interest that we should face the facts, and realise that if some countries are prepared to subsidise, we should be prepared to subsidise, so that our shipping may be on an equal footing with that of some other countries?

The Prime Minister

It is true that certain Governments do subsidise. The great question of policy is how far it benefits us as a country to enter into this form of competition. We have been fairly successful in export subsidies generally in getting a code, and I would rather that we should try to work to get it generally understood that subsidy was not for air or shipping transport.