HC Deb 15 March 1967 vol 743 cc498-9

28. Mr. Onslow asked the President of the Board of Trade what action he is taking to encourage the development of international routes by British independent airline operators.

74. Mr. Wolrige-Gordon asked the President of the Board of Trade what further steps he is taking to develop international routes from airports in Scotland.

Mr. J. P. W. Mallalieu

It is for the airlines, independent or otherwise, in their commercial judgment, to apply for licences for international services whether from Scotland or from any other part of the United Kingdom. The Board of Trade can then seek to secure from the countries concerned proper scope for any new service that had been licensed. Full support is given to any new service that opens up a fresh market for British aviation, but the Board would not regard it as acceptable if recognition of the service could be obtained only on conditions detrimental to an established service or the British share of the market as a whole.

Mr. Onslow

Does the Minister not understand that the best encouragement he could give to these operators would be that of earning a profitable return? He penalises them by withdrawing investment allowances and the Air Transport Licensing Board artificially restricts their domestic fares. How does he expect them to expand unless these factors are taken into account?

Mr. Mallalieu

This Question refers to licensing. It is a fact that many more licences have been granted than have been taken up.

Mr. Fortescue

Is the Minister aware that the Air Transport Licensing Board recently refused an international licence from Liverpool to Paris for an independent operator on the ground that it would interfere with the traffic run by B.E.A. from Manchester to Paris?

Mr. Malialieu

I am aware of that point, but I would not like to comment on it in case there is an appeal. It is our policy to avoid double designation.

Mr. R. Carr

Is the hon. Gentleman aware that my hon. Friend's Question refers to encouragement and not specifically to licensing? Will he at least undertake to remove the discouragement caused at present by loss of investment allowance which, together with S.E.T., must be adding at least a farthing per seat mile costs to these aircraft, which is a very serious loss in competitive power?

Mr. Mallalieu

As the right hon. Member knows, those questions should be addressed elsewhere, perhaps to the Chancellor.