HC Deb 22 November 1967 vol 754 cc1303-4
25. Mr. Biffen

asked the President of the Board of Trade what proposals he has to promote greater competition on domestic air routes.

Mr. J. P. W. Mallalieu

None, Sir. The hon. Member will be aware that the Edwards Committee is now looking into questions of this kind. The House will not expect me to anticipate the Committee's recommendations.

Mr. Biffen

Is the hon. Gentleman aware that a free enterprise company, British Eagle, wished to undercut other companies in this field and was prevented from doing so by the Air Transport Licensing Board? Does it not make nonsense of the supposed prices and incomes policy that a free enterprise company which wishes to undercut should be prevented from doing so by a public authority?

Mr. Mallalieu

The whole question of the operations of the Air Transport Licensing Board is being reviewed by the Edwards Committee. The question of the effectiveness or desirability of competition comes into that. It is a two-sided issue.

Mr. Corfield

Since there is a considerable subsidy on most domestic routes operated by B.E.A., is it not time that the subsidy was identified and the independents given an opportunity to operate on the same terms?

Mr. Mallalieu

I do not recognise that there is a subsidy for B.E.A. I wish that I could say that these domestic lines were generally profitable. They are not.