HC Deb 18 January 1974 vol 867 cc1071-5
Mr. Dalyell

(by Private Notice) asked the Secretary of State for Trade and Industry whether he will make a statement on the banning of air charter flights to Italy.

The Minister for Trade and Consumer Affairs (Sir Geoffrey Howe)

All airlines operating to and from this country are currently subject to a fuel allocation scheme which is operated without discrimination between British and foreign operators. The Italian charter airline SAM has sought total exemption from the restrictions necessary for the operation of such a scheme. We have made clear that this is not possible but that we are, of course, prepared to negotiate reasonably about this matter. Despite that, the Italian Government yesterday afternoon withdrew unilaterally the right of British charter airlines to fly into and out of Italy.

Her Majesty's Government are seeking urgent discussions with the Italian Government on this matter. Meanwhile, SAM aircraft have been forbidden to refuel in this country. British charter airline and tour operators have assured me that they are taking all possible steps to look after the British passengers affected.

Mr. Dalyell

As one of the Parliamentary Labour Party aviation group who recently went as a member of a delegation to Gatwick airport for discussions with management and trade unions, may I ask the Minister to enlarge on the exact circumstances of the denial of aeroengine fuel to the Italian SAM aircraft? Was this a unilateral decision—if so, by whom—and was the Department of Trade and Industry consulted? If the DTI was consulted, what advice did it give?

Second, what is being done for the stranded British passengers in Italy? Third, and above all, is there not urgent need not only for what the Minister calls discussions with the Italian Government but for discussions with the world's airlines, which are squabbling over fuel supplies at so many international airports, and need for high-level inter-Government discussions to prevent the sudden withdrawal of aero-engine fuel on an impromptu tit-for-tat basis?

Finally, is it not more than a little distressing that the Government of Italy, one of our EEC partners, should apparently have seen fit to endorse such action?

Sir G. Howe

Obviously, the Government are concerned that this action has been taken, to the disadvantage of British airline operators. As regards the exact circumstances of the refusal of fuel to SAM aircraft, all I can say is that there is in operation in our country a scheme which is working, as the result of many discussions with the airlines and other interests involved, for fuel allocation on a comparable basis to all airlines, in the light of the well-known fuel shortage.

Mr. Dalyell

Who took the decision?

Sir G. Howe

The hon. Gentleman will understand that on a Private Notice Question posed 30 minutes ago——

Mr. Dalyell

Two hours.

Sir G. Howe

——which I received 30 minutes ago, in accordance with the way these matters go—I am not able to answer every question which he puts on these points. I shall see that my hon. Friend the Minister for Aerospace and Shipping gives him additional information if he is able to do so.

I am pointing out that there is, and has been, a scheme operating in this country so far as possible without discrimination between the various airlines, and it is wrong to suggest that internationally there has not been a vast amount of consultation between Governments, airlines and the companies supplying fuel in order to try to secure sensible allocations. With very few exceptions, that is working extremely well. I have explained already that the charter companies have assured me that they are taking all possible steps to look after British passengers affected.

Mr. Dalyell

On a point of order, Mr. Speaker, and as a matter of explanation, may I say that this Question was in the hands of your office before 9 o'clock?

Mr. Speaker

There is this difficulty about Private Notice Questions on a Friday, and I am afraid that, if this point is pursued, I shall not be encouraged to allow them. In fact, my decision was not made until a quarter past ten, since there has to be time for proper consultations.

Mr. Wilkinson

Does my right hon. and learned Friend agree that it is in violation of normal international aviation practice for the Italians to place this embargo on a number of British air charter companies, and that in their case the prohibition on obtaining fuel was placed on only one company, SAM, and that company did not go along with the British fuel quota system with which other foreign operators have complied? Will my right hon. and learned Friend confirm that passengers of Court, Dan Air and Laker, in particular, who are seeking to go out to Italy this weekend on holiday, will be looked after by scheduled carriers or by other means?

Sir G. Howe

I understand that the operators have instructed their passengers to report as normal in accordance with the arrangements already made, when they will be taking further steps to look after them. As regards the refusal of fuel to SAM, perhaps I should make clear that, as I understand it, SAM has been taking a position of its own in challenging the basis of allocation which has been operating in this country, and there had been no refusal to refuel SAM aircraft until late last evening after it was known that the Italians had cancelled permits for British charter operators to go to and from Italy.

Perhaps I should add, in response to what you have said Mr. Speaker, that my hon. Friend, who would have been more than happy—more happy than I, perhaps—to deal with this matter, was at London Airport when your decision to allow the Question was made at 10.15 a.m. My hon. Friend has come back to the House as quickly as possible. I also came here with the best possible speed, and I hope that I have been able to tell the House as much as is known at this moment.

Mr. Bishop

I think that the House will understand the reasons for the lack of information which we want, but this remains none the less a serious matter. It is not just tit-for-tat in one instance. The situation is that the Italian Government have themselves banned the entry and exit of British charter aircraft for another two weeks, creating a serious problem for those concerned, including people wishing to return to this country.

Is the Minister aware that the House was assured a few weeks ago by his hon. Friend the Minister for Aerospace and Shipping that adequate plans had been made and consultations taken place regarding economies in aviation and shipping fuel? Does he recognise the seriousness of this ban, which will continue to the end of the month? Is the right hon. and learned Gentleman aware that only yesterday afternoon we read that the DTI realised—that was the word used in The Times—that the ban would start a few hours later?

What urgent top-level discussions are taking place with the Italian Government and others to ensure that the ban is lifted as soon as possible? Further, what action is being taken with other EEC countries to ensure that the trouble does not spread? Finally, does the Minister accept that, if the British Government and British people are to be treated by our EEC partners in a most humiliating way, the time has come when we need less harmonisation and a little more harmony within the Community?

Sir G. Howe

Certainly, the hon. Gentleman is right to say that this is a matter which we take seriously. He may be reassured that representations of the strongest possible kind will be made—indeed, are being made—to try to have this matter corrected as soon as possible. It arises against a background in which my hon. Friend has been giving almost continuous consideration, within this country and outside it, to the problems which necessarily attend the shortage of aviation fuel. I have already said that the operators are doing all that they can to look after the interests of British passengers, and I assure the hon. Gentleman that any further information which becomes available and which would help the House to understand what is going on in this matter will be made generally available by my hon. Friend as soon as he possibly can. [HON. MEMBERS: "In the House."]. It might be that information could be made available more quickly than if one waited until the House reassembled on Monday. That is why I had in mind making it available in the most appropriate fashion as soon as possible.

Sir J. Langford-Holt

Has the right hon. and learned Friend's attention been drawn to the fact that as long ago as last November the Italians were refusing refuelling facilities to British aircraft at Rome?

Sir G. Howe

I do not understand that there has been any general refusal of that kind. My hon. Friend the Minister for Aerospace and Shipping has heard what my hon. Friend said and he will look into it.