HC Deb 02 August 1976 vol 916 cc1207-10
Mr. Higgins

(by Private Notice) asked the Secretary of State for Trade if he will make a statement on Laker Airways Sky-train and civil aviation guidelines.

The Secretary of State for Trade (Mr. Edmund Dell)

The revised Policy Guidance to the Civil Aviation Authority which was annexed to the White Paper "Future Civil Aviation Policy" (Cmnd. 6400) was approved by an affirmative resolution of both Houses in February 1976. The judgment by the High Court on 30th July throws into doubt the validity of some important aspects of that guidance and of my predecessor's decision to withdraw the designation of Laker Airways as a United Kingdom scheduled service carrier under the Bermuda Agreement. I am urgently studying the implications of that judgment.

Mr. Higgins

Does the right hon. Gentleman agree that the case for not cancelling Laker Airways Skytrain designation and forcing the CAA to revoke its licence is now even stronger that it was when we debated the matter in February? Why do he and his Department seek to give the impression that there was no vote on that occasion? As he has subsequently reopened the whole question of the United States-United Kingdom Bermuda Agreement, does he intend to include Skytrain in those negotiations? Precisely to what extent does he now believe that he has powers to give directions under the Civil Aviation Act 1971?

Mr. Dell

The hon. Gentleman says that there is now a stronger case for Laker Airways. What is in question here is the Secretary of State's powers. There may well be—I have not yet decided—an appeal on this matter. As to the renegotiation of the Bermuda Agreement, I shall bear in mind the policy adopted by both Houses of Parliament in February.

Sir D. Walker-Smith

In view of this judicial decision and another very recent judicial decision, and as the Prime Minister is fortuitously sitting next to the right hon. Gentleman, would the right hon. Gentleman be good enough to breath in his right hon. Friend's ear the suggestion that he send a minute to his Ministers calling attention to their duties in respecting the law?

Mr. Dell

All Ministers have a duty to respect the law. In taking the decision which he took, my right hon. Friend the former Secretary of State was acting on legal advice. The right hon. and learned Gentleman is very well equipped to know that the law is not always certain. That is why provision is made for appeals against certain decisions of the courts.

Mr. Tebbit

Is the Secretary of State aware that, following his decision to renegotiate the Bermuda Agreement, this court decision leaves an unprecedented air of uncertainty and muddle over aviation policy? Will he not accept some of the advice which has been so freely given at Tameside, which is to accept the decision of the court, and then stop making policy on these matters a political football? Why does he not accept that Laker has the right to operate as the courts say?

Mr. Raphael Tuck

What is the Court of Appeal for?

Mr. Dell

Unfortunately, whatever decision I now take about an appeal, there is bound to be a period of uncertainty about this country's civil aviation policy. It seems to me, as a layman, that one question raised by the learned judge's decision is whether the Government are entitled to have a policy in these areas. As for the Bermuda Agreement, I thought that the renegotiation was entered into with the support of both sides of the House to improve this country's relative position in civil aviation. I have said that in the renegotiation I shall bear in mind the policy approved by both Houses last February.

Mr. Ioan Evans

Does my right hon. Friend realise that Parliament is a lawmaking body and that if the existing law does not allow the Government to do what is in the best interests of Britain we must seek new legislation?

Mr. Dell

I note my hon. Friend's remarks. It would be curious if the Government could not have a policy in these areas.

Mr. McCrindle

If it turns out that the previous Secretary of State was acting ultra vires, what consideration will be given to paying compensation to Laker Airways? In the meantime, will the right hon. Gentleman undertake that in the review of the Bermuda Agreement the whole concept of Skytrain will be put forward by the British side? Is the right hon. Gentleman sure that there are no other aspects of the civil aviation review which are ultra vires? Otherwise both British Airways and British Caledonian might be spending millions of pounds needlessly.

Mr. Dell

I have already said that the judgment of the learned judge calls into question many important aspects of the guidance given by my right hon. Friend last February. This raises the question whether it would be right to appeal. That is prefatory to all these other questions.

Mr. Dalyell

Are there many other countries, if any, where this kind of decision is taken in the courts?

Mr. Dell

I think that there are many other countries, and rightly, where the decisions of Ministers can be adjudicated in the courts. I obviously have no objection to the rights of citizens being upheld in the courts. However, in many cases there is uncertainty about the law. Decisions made by lower courts are changed. It may be necessary to establish in this case that the judgment of the learned judge is in accordance with the law.

Mr. Dykes

The right hon. Gentleman has made an admission of a prima facie misuse of powers by the relevant Minister. Will he also concede that there are a number of very unwelcome monopoly aspects of the way in which IATA functions, to the detriment of independent operators such as Laker Airways? Will the right hon. Gentleman reconsider the matter in the context of his inevitable admission that he will now have to reconstruct the whole of the aviation policy?

Mr. Dell

I am in no way accepting that there was prima facie a misuse of power. My right hon. Friend acted in accordance with legal advice that he had the power to give the guidance which he gave. I do not think that the matter of IATA arises under this Private Notice Question. As the hon. Gentleman knows, decisions about fares are not always in accordance with IATA, even under the present system.