HC Deb 13 April 1981 vol 3 cc7-8
7. Mr. McCrindle

asked the Secretary of State for Trade what action is being taken to limit the illegal discounting of air fares.

11. Mr. Lennox-Boyd

asked the Secretary of State for Trade whether he will endeavour to renegotiate those international agreements which prevent the lawful sale of air tickets at a discount.

Mr. Eyre

The Government believe that the problem of discounted air fares would largely disappear if legitimate lower fares were available. It is our objective to negotiate such fares with our international partners and we have made some progress.

Mr. McCrindle

I agree entirely with the sentiment expressed by the Minister. Will my hon. Friend nevertheless not agree that the Government's duty at this moment is either to prosecute those airlines which engage in illegal discounting of air tickets or—preferably—to lean heavily on airlines, including British airlines, so that they dispose of their surplus capacity at reduced rates through the legitimate travel trade, thereby making these discounted rates available to all rather than to some who choose to patronise the so-called "bucket shops".

Mr. Eyre

I know that my hon. Friend will understand, with regard to prosecutions, that it is difficult to obtain evidence that will stand up in court, particularly as this would involve evidence of the complicity of airlines. My hon. Friend's second question related to the proposal about the wholesale system. As my noble Friend Lord Trefgarne, who has ministerial responsibility for these matters, made clear to the travel agents, who proposed such a scheme, it is a matter in the first place for discussion with the airlines.

Mr. Lennox-Boyd

I recognise that this is a difficult matter. Will my hon. Friend nevertheless agree that it is absurd to have on the statute book a criminal offence that is widely committed but rarely prosecuted even if the reason is that it is difficult to obtain suitable evidence in a liberal democracy? Will he not further agree that it is about time that IATA faced the problem openly with a view to modifying those provisions that are contrary to the interests of the consumer and to the operation of a free market?

Mr. Eyre

My hon. Friend was raising a question of legal principle when he emphasised the difficulty about obtaining sufficient evidence to justify a prosecution and to obtain a conviction. I assure him that these matters are of considerable complexity. On the second point that he mentioned, it is really for IATA and ABTA to look at the matter in so far as it affects their members and the restrictions that apply. The restrictions are imposed by those associations.

Mr. Anthony Grant

I recognise that the abuse of "bucket shops" can be overcome only by international agreement, but does my hon. Friend agree that the business traveller at least demands not only cheap fares but regular scheduled services? Will he bear in mind that this is important and not always obtained merely by a reduction of fares? Some regulation is necessary to help the business traveller as opposed to the bucket and spade brigade.

Mr. Eyre

My hon. Friend raises an important aspect of the matter. He confirms the wisdom of the Government's approach, which is to seek, by international agreement, to obtain a whole system of lower fares coupled with good services.

Mr. McCrindle

On a point of order, Mr. Speaker. In view of the unsatisfactory nature of the reply, I should like to give notice that I shall raise the matter again on the Adjournment at the earliest possible moment.