Laker Skytrain (Hansard, 10 January 1977)

§ 1. Mr. Tebbit
asked the Secretary of State for Trade what is his intention towards the Laker Skytrain service following the loss of his appeal against the High Court finding that he acted outside his powers.

§ 14. Mr. Neubert
asked the Secretary of State for Trade what action he now proposes in relation to the Laker Airways Skytrain project.

§ 16. Mr. Rost
asked the Secretary of State for Trade if he will now support the introduction of the transatlantic Skytrain by Laker Airways Ltd.

§ The Under-Secretary of State for Trade (Mr. Clinton Davis)
Before I answer, may I offer to the House the apologies of my right hon. Friend the Secretary of State for Trade for his absence this afternoon? He is presiding over a joint Anglo-Iranian ministerial commission in Iran. I hope that the House will accept his apologies.
My Department was given leave to appeal to the House of Lords and my right hon. Friend is considering whether to do so.

§ Mr. Tebbit
Is the hon. Gentleman aware that the Skytrain issue is not the only matter in which the Government have been caught acting unlawfully? Is he aware that Mr. Justice Mocatta's judgment was that the whole of the single designated policy for airlines on long-haul routes is unlawful, and that that is 1022 the policy on which the Minister is renegotiating the Bermuda Agreement? Will he get himself straightened out?

§ Mr. Davis
The hon. Gentleman, in his rather curious characteristic way, has highlighted some of the difficult issues here. The judgment of the Court of Appeal clearly has far-reaching consequences—far wider than the issue of Sky-train, as the hon. Gentleman acknowledged. Therefore, it is right that the transcript of the judgment—which was received by Ministers only on 22nd December—should be fully considered so that all the implications can be weighed up. That is only reasonable.

§ Mr. Neubert
Does not the Minister agree that last Friday's announcement of President-elect Carter's expansionist measures gives ground for believing that there will be the expansion of North Atlantic air traffic which was a previous precondition of his approval? As Laker Airways could mount this operation with a one-way fare of £65 at 30 days' notice, is not that a reason for giving the go-ahead now?

§ Mr. Davis
The hon. Gentleman is inviting my right hon. Friend and me simply to bypass the important constitutional implications of the judgment, and that we are unable to do. As to the wider issue of President-elect Carter's economic policies, I do not know that he made his statement on the basis of the Skytrain issue.

§ Mr. McCrindle
Is it still the Minister's guess that if the Skytrain service were to proceed it is almost certain that Pan-American Airways, TWA and British Airways would seek to introduce a similar service?

§ Mr. Davis
That is a hypothetical question.

§ Mr. Nott
With the modesty that becomes a newcomer to the trade scene, and hoping that I last slightly longer than did my predecessor, my hon. Friend the Member for Glasgow, Cathcart (Mr. Taylor), may I make two comments? I do not think that there is any need to wait for the transcript of the court's decision. The facts are well known and appear in The Times Law Reports. The Government must make an early decision whether to take the matter to the House 1023 of Lords, to bring forward legislation to correct the abuse of ministerial powers or to reconsider the whole question. These are, as the Minister says—

§ Mr. Speaker
Order. I am always very kind to a maiden speaker, but this is Question Time.

§ Mr. Nott
I apologise, Mr. Speaker. I was carried away with my new responsibility. The abuse of power by Ministers is a very serious matter. When will the Government come forward with their decision?

§ Mr. Davis
May I first congratulate the hon. Gentleman on his appointment? He has already exceeded the stay in office of his predecessor, and I hope that he will have many happy years in Opposition.
As to when the decision will be taken, I give the House the assurance that the matter is being carefully and expeditiously considered by Ministers, and I hope that my right hon. Friend will be in a position very shortly to inform the House of his decision.