§ 14. Mr. Onslow asked the President of the Board of Trade what reduction he expects in investment expenditure by British airlines on new aircraft, in view of the fact that investment allowances have been withdrawn and that aircraft do not qualify for investment grants.
§ Mr. JayNumerous factors have to be taken into account by airlines before purchasing aircraft. I am not aware that the consideration mentioned by the hon. Member is by itself having a signficant effect on British airlines' investment expenditure.
§ Mr. OnslowThat is a most extraordinary reply. Does the Minister not understand that this puts up the cost and must have the effect of increasing domestic freight tariffs and operating expenses? Does he really think that this retrograde revocation of the allowance system does anything to stimulate British independent aviation?
§ Mr. JayThere is no evidence that this is having a significant effect. Under the Industrial Development Act, the nationalised industries as a whole and transport services as a whole do not qualify for the grant. In those circumstances, it would be impossible to give it to aircraft.