§ 15. Mr. WatersonTo ask the Secretary of State for Transport what steps he is taking within the EU to resist the payment of illicit subsidies to (a) Air France, (b) Iberia and (c) Olympic Airlines. [15704]
§ Mr. NorrisThe UK has opposed the granting of state aid by national Governments to Air France, Iberia and Olympic Airlines, and we have applied to the European Court of Justice to annul the Air France decision.
§ Mr. WatersonWill my hon. Friend take an early opportunity to remind his opposite numbers in Europe that, to use Lord King's words, within less than a decade British Airways went from awful to awesome as a result of privatisation, cutting overmanning and achieving more efficient management, and that if their national airlines cannot achieve that without massive subsidies they should be allowed to go out of business?
§ Mr. NorrisI listened closely to what my hon. Friend said and I think that his words will resonate throughout the House and outside. State aid merely shores up inefficiency, distorts competition and undermines European airlines' ability to compete in world markets.