§ 1. Mr. John Hallasked the Chancellor of the Exchequer what representations have been made to him by the British European Airways about the effect of the currency restrictions on the Corporation's profitability.
§ The Chief Secretary to the Treasury (Mr. John Diamond)None to me, Sir, although the Chairman raised this matter earlier in the year with my right hon. Friend the President of the Board of Trade.
§ Mr. HallDoes the right hon. Gentleman agree that the Chairman of B.E.A. made it very clear that he regards the currency restrictions as having a very serious effect on future profits? In view of the fact that this ill-conceived measure was chosen as one of the methods of trying to protect the £, now that we have devaluation, will not the right hon. Gentleman reconsider the whole question of currency restriction of this kind?
§ Mr. DiamondThese restrictions continue to make a useful contribution to our balance of payments.
§ Mr. HigginsThe right hon. Gentleman will be aware of the debate last night which spelled out the relationship between currency restrictions and B.E.A. finances. Could he say whether it is the intention of the Government to apply for an increase in fares under I.A.T.A. and, if so, what the position on this is?
§ Mr. DiamondThat is entirely another matter, and one for one of my colleagues.