HC Deb 19 November 1973 vol 864 cc921-2
Mr. Tebbit

asked the Secretary of State for Trade and Industry what powers he has to restrict the use of aviation fuel by the limitation of the services of British and foreign carriers; and if he will make a statement on the aviation fuel supply position.

The Under-Secretary of State for Trade and Industry (Mr. Peter Emery)

British carriers operate under the terms of licences awarded by the Civil Aviation Authority, which follows policy guidance approved by Parliament. Foreign aircraft operate into and out of this country under permits granted by the Secretary of State. The supply of aviation fuel is being closely watched with other oil supplies.

Mr. Tebbit

When my hon. Friend is wondering how the matter should be managed, will he bear in mind that, if we ration fuel to airlines by regulation, the procedure will become increasingly bureaucratic over a long period? If we are to have a long-term problem, per- haps the matter might be better dealt with by the price mechanism than by regulation.

Mr. Emery

I understand what my hon. Friend has said. However, I should point out that British Airways has announced—last week, I think—cuts of its services which will mean cuts of 10 per cent. in the consumption of aviation fuel.

Mr. Mason

The British Airways Board and the major airlines are not waiting for ministerial advice on the matter, and neither are the oil companies. They have already—

Mr. Speaker

Order. I must insist that even right hon. Members conform to the rules of Question Time.

Mr. Mason

Is the Minister aware that the oil companies have already cut back supplies of aviation spirit to British Airways, and that British Airways is cutting back its transatlantic services? What assessment has been made of the cut-back of British Airways' operations?

Mr. Emery

If the right hon. Gentleman had been listening to my last reply he would have heard me say that, by co-operation, British Airways and the British airline companies have agreed a 10 per cent. cut-back already, without any action from the Government. That is the sort of co-operation we are receiving from much of industry.

Mr. Mason

I was asking what estimate the Government had made of the British Airways Board's operations because of this 10 per cent. cut-back.

Mr. Emery

The right hon. Gentleman should know that that is up to the BAB, and it is co-operating with us, as, indeed, are the private airlines. That is the type of co-operation which the Government are getting without any stimulation from the Opposition.