HC Deb 16 July 1980 vol 988 cc1485-6
48. Mr. Dykes

asked the Lord Privy Seal if he will seek to place on the agenda at future meetings of the Council of Foreign Ministers the need for Community action to achieve lower air fares between the member States.

Sir Ian Gilmour

The United Kingdom Government pressed successfully for agreement by the Council of Transport Ministers on 24 June on an invitation to the Commission and national experts to examine scheduled air fares within the Community as soon as possible. The reports of this study are likely to be considered by the Council by the end of this year or early in 1981. We hope that the Community can respond to the challenge of encouraging cheaper air travel between member States.

Mr. Dykes

I thank my right hon. Friend for that answer, but is not the inference to be drawn from his reply that he agrees that air fares between member States in Europe are supported by an unacceptable and anachronistic cartel, and that there is now a growing public clamour for realistic air fares between European countries? If those fares were similar to internal fares within the Community, the fare between London and Paris, for instance, could be halved. The carriers may resist that process, but the demand is now inexorable and Governments are supporting it.

Sir I. Gilmour

I think that the whole House agrees that air fares in Europe are extremely high and should be lower. It is our objective that fares should be lower, but under bilateral and multilateral agreements that have been made over the years, we are not allowed to impose cuts in existing European air fares. The agreement of the Governments of the countries concerned is necessary. Governments of both parties have resisted increases in fares over the years.

Mr. Mikardo

Is the right hon. Gentleman aware that it is possible to fly to Hong Kong more cheaply than it is to fly to Marseilles, and that that situation will continue until the Transport Ministers change it? In view of that, can be persuade them to agree to a programme that is a little more speedy than the leisurely one that he announced today?

Sir I. Gilmour

I agree with the first part of the hon. Gentleman's question, but he will realise that it is not simply a question for the EEC. It affects the whole of Europe. I agree that the general situation is ridiculous.

Mr. Wilkinson

Does my right hon. Friend agree that it is not merely the regulation of the fare structure that is at the heart of the matter, but also the pooling arrangements that exist between carriers? If we are to get the proper competitive environment that is necessary to bring fares down, could not pooling also be carefully examined?

Sir I. Gilmour

That is basically a question for my right hon. Friend the Secretary of State for Trade, but what my hon. Friend says sounds correct.

Mr. Dalyell

The problem is not simply between States, but within this particular State. The most expensive air services in the world are those between London and Edinburgh, and London and Glasgow.

Sir I. Gilmour

I am sure that the hon. Gentleman is right, but he will appreciate that that is not a matter for me.