§ 11.38 a.m.
§ THE PARLIAMENTARY SECRETARY, BOARD OF TRADE (LORD WALSTON)My Lords, with your Lordships' permission I should like to repeat a Statement which my right honourable friend the President of the Board of Trade made earlier to-day in another place. The Statement is as follows:
"The Government have decided to institute a broadly based inquiry into the civil air transport industry.
"Since the Board of Trade assumed responsibility for the industry a year ago, I have been impressed both by the achievements of the industry and by the problems it faces. There is undoubtedly a feeling of uncertainty about the future of British civil aviation. This has found particular expression in criticism of the present licensing system, with its influence on the structure of the industry. Honourable Members on both sides of the House have shown concern and sought reform.
"Because our civil aviation industry is of great importance, both as an integral part of our system of transport and as an earner of foreign exchange, the Government are anxious that it should be as strong and competitive as possible. Before considering changes affecting the industry, the Government 887 have decided to obtain independent advice. There has been no independent inquiry since the war, and the time has come to take stock. I am, therefore, setting up a Committee with the following terms of reference:
'To inquire into the economic and financial situation and prospects of the British civil air transport industry, and into the methods of regulating competition and of licensing currently employed; and to propose with due attention to other forms of transport in this country what changes may be desirable to enable the industry to make its full contribution to the development of the economy and to the service and safety of the travelling public.'"While the inquiry must be thorough, it is also important that it should be completed quickly. I hope it will be able to make at any rate a first report with recommendations in spring, 1968. I trust that the industry itself will respond to this opportunity by giving the Committee its full support and co-operation."
§ LORD DRUMALBYNMy Lords, I should like first to thank the noble Lord for having repeated that Statement and then to say how much we welcome it. I hope that this is an earnest of the effects of the "new broom" in the transfer of functions to the Board of Trade. May I ask about the scope of the Inquiry? Am I right in thinking that it will cover all forms of air transport, nationalised industries and the others? Secondly, will it cover freight as well as passenger transport? May I also ask about the composition of the body that is to conduct the Inquiry? Have any decisions been made about this? As the time is short, obviously this matter has to be tackled quickly.
May I also ask about the evidence the Committee will take? In view of the nature of the industry, will they be enabled to take evidence not only here but abroad? So far as the development of air freight traffic is concerned—which I hope is included—will the Inquiry go into matters of facilities such as customs and others? There is one very important aspect that has to be looked at, the question of investment grants for aircraft. This is an urgent matter. Will it be possible, if necessary, to legislate before the Inquiry has concluded? Then, on the Air Transport Licensing Board, 888 could the noble Lord say whether the whole scope of air transport licensing will be fully covered by the Inquiry?
May I conclude by saying this? We have certainly as good an air transport industry in this country as any other in the world; but this is largely due to the quality of its personnel. May I express the hope that, whatever else happens, all the skill at present available will be maintained, and that nothing will result from the Inquiry which will interfere with that? We agree with the noble Lord that the object must be to ensure that the industry is a strong and expanding one.
§ LORD WALSTONMy Lords, the noble Lord has asked me a great many questions, all of them very pertinent. I will try to answer all of them. The noble Lord's first question was whether this Inquiry would cover all forms of air transport, both nationalised and others; the answer is, Yes. Second, whether it would cover freight; and again the answer is, Yes. The noble Lord asked about the composition of this Inquiry. That has not yet been decided; but I hope that an announcement will be made in the near future. Then he asked whether the Inquiry will take evidence overseas, as well as at home. It will be for the Chairman to decide where he wishes to take his evidence. Certainly there will be nothing in his terms of reference which will preclude him from taking evidence overseas. Will the Inquiry cover Customs facilities and matters of that sort? Again that is for the Chairman to decide; but as the scope of the Inquiry is wide, and covers freight in all its aspects, I imagine—although I cannot commit the Chairman or the Inquiry itself—that, naturally, they would wish to take into account these matters and also such matters as integration with other forms of transport, regional development and so on.
My Lords, I think the question of investment grants for aircraft may be outside the scope of the Inquiry because it falls more within the field of aircraft construction. This is an Inquiry into air transport industry. While not committing the Chairman by saying that he would not decide to inquire into this subject, I should expect that it would not be something to which he would devote too much time. That being so, there 889 would be no reason why any legislation which might be contemplated would have to be held up for the result of the Inquiry. The Air Transport Licensing Board and its activities will, of course, be covered in the Inquiry. I agree with what the noble Lord had to say about the quality of the personnel, and I am sure that the Inquiry itself will do a great deal to stimulate and encourage the people engaged in the whole of the air transport industry. I am certain that at the end of the Inquiry there will be no question of lack of confidence. I think it will be just the reverse and that there will be still more encouragement to people to give their services.
§ LORD NUGENT OF GUILDFORDMy Lords, is the noble Lord aware that in this fast-moving and fast-developing industry, the private enterprise section has a particularly valuable role to play—in its ability to move more rapidly than the nationalised corporations and often develop in a more flexible way and thereby to take advantage of opportunities which the national corporations could not? Can the noble Lord assure us that in this Inquiry the possibility of the continuing and more rapid development of the private enterprise section will be given full scope?
§ LORD WALSTONMy Lords, I can assure the noble Lord that the role of private enterprise in civil aviation will be fully investigated and taken into account.