HC Deb 10 July 1968 vol 768 cc519-20
31. Mr. Onslow

asked the President of the Board of Trade what proposals he has received for capital expenditure on the provision of hotel accommodation in the United Kingdom by British European Airways and the British Overseas Airways Corporation, respectively, in the period up to 1971.

Mr. William Rodgers

No specific proposals for the approval of capital investment are before my right hon. Friend at the moment.

Mr. Onslow

Would the Minister agree that should any such proposal come before him it would be very much more in the public interest that the necessary finance for the essential extension of such accommodation should be found wholly in the private sector?

Mr. Rodgers

Not necessarily, Sir.

Mr. Blaker

Is the hon. Gentleman aware of the proposal that the nationalised airlines should go into the hotel business and that there is anxiety in the private hotel sector that this may involve unfair subsidies or unfair competition?

Mr. Rodgers

The air corporations have power to go into the hotel business and, indeed, they own some hotels at present. I understand the anxiety expressed by the hon. Gentleman, but I remind him that the air corporations will expect to get a satisfactory commercial return and that there will be no subsidy. Secondly, as the House wishes, the Government's purpose is to ensure that the hotel industry, by whomsoever it may be owned, makes an important contribution towards our tourist trade.

Mr. Corfield

Will the hon. Gentleman ensure that, in so far as these hotels are built on land at present belonging to the railway authorities, no specially favourable financial arrangements are made towards the nationalised air corporations as compared with what would be available for independent hotel companies?

Mr. Rodgers

I will take note of that point.

Mr. Ronald Atkins

Will not this enterprise by the State corporations do a good deal to encourage the tourist trade and bring earnings to this country?

Mr. Rodgers

Yes, Sir. I am grateful to my hon. Friend for that supplementary question. We want to encourage enterprise everywhere, and this does not rule out the public corporations, which should be allowed to make their proper contribution to the national economy.