FOREIGN TRAVEL ALLOWANCE (Hansard, 16 October 1968)

§ LORD TREFGARNE
My Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.

§ LORD BESWICK
My Lords, as was announced in another place yesterday, the basic travel allowance for the twelve months beginning on November 1 will remain at £50.

§ LORD TREFGARNE
My Lords, I am grateful to the noble Lord for that reply. I think he will appreciate that the Question was put down before the answer yesterday was known. Is he aware that the retention of this £50 travel restriction is causing serious repercussions in the airline industry? And is he further aware that arising out of those repercussions there is very widespread unemployment among air crew in general?

§ LORD BESWICK
My Lords, I think the noble Lord is exaggerating the effects of this particular restriction. I have no evidence at all which supports those claims.

§ LORD CONESFORD
My Lords, do the Government think that the virtual prohibition of private travel in France will help us to get into the Common Market?

§ LORD BESWICK
My Lords, there are quite a number of British people who apparently are not quite so extravagant in their expenditure as the noble Lord, since they find it quite easy to go to France under this legal limit.

§ THE MARQUESS OF SALISBURY
My Lords, may I ask the noble Lord how much it is calculated is saved by this rather vexatious restriction?

§ LORD BESWICK
The figure is estimated at between £25 and £30 million a year.

§ LORD WILLIAMSON
My Lords, may I ask my noble friend whether he is aware of the letter in the Guardian, dated October 5, from Lord Cromer, 1344 which states in rather strong language that by this action we are in derogation of the O.E.C.D. code and that we ought to reassume our obligations in this matter? Could my noble friend say whether or not we are in derogation of our obligations?

§ LORD BESWICK
My Lords, I am grateful to my noble friend for giving me the opportunity of replying to the allegation implicit in Lord Cromer's letter. We should get this point quite clear. There is no question of our having abrogated any international commitments. The O.E.C.D. rules expressly provide for an exemption in certain circumstances from the obligation to make available 700 dollars, or the equivalent, per journey. The O.E.C.D. in the present circumstance has given, without reserve, this exemption. If the I.M.F. have agreed to our arrangements and the O.E.C.D. think it right to make this exemption, I cannot see why a British citizen should think up these charges about British bad faith in this and other matters.

§ LORD CARRINGTON
My Lords, would the Government bear in mind— and I do not make any Party political point—that there is a rather unpleasant tendency on the part of our friends on the Continent to treat Britons as second-class citizens because they have only a limited supply of money for their holidays?

§ LORD BESWICK
My Lords, that may well be the tendency on the part of some individual citizens. I think that tendency is encouraged by the fact that they say we cannot balance our overseas payments account. What they will not accept, and what some people in this country find difficult to accept, is that if we are serious about balancing our payments account we have to accept in the short term these admittedly unpopular restrictions.

§ BARONESS HORSBRUGH
My Lords, could the noble Lord say how long the £50 is expected to last the traveller to the Continent of Europe?

§ LORD BESWICK
I think it has some relation to the thirst of the traveller.

BARONESS SUMMER SKILL
My Lords, is my noble friend aware that the great majority of people in this country have never had more than £50 to spend 1345 on themselves abroad, and does he not think that in view of that these questions are somewhat subjective?

§ LORD BESWICK
I am grateful to my noble friend.

§ LORD CARRINGTON
It is nonsense, though.

§ LORD TREFGARNE
My Lords, is the noble Lord aware that, contrary to his original belief, there is in fact widespread unemployment among air crews in the airline industry? Will he undertake to consult in this matter the British Airline Pilots' Association, of which I understand he is a Vice-President?

§ LORD BESWICK
My Lords, I know there is some under-employment in the industry. What I am saying is not proven is that it follows from this restriction.

§ LORD CARRINGTON
If it is true that about £30 million is saved by this travel allowance limit, could the noble Lord say why he agreed with the question of the noble Baroness?

§ LORD BESWICK
My Lords, I am sorry the noble Lord finds it so difficult to reconcile these two factors. What my noble friend is saying is that no real hardship is imposed on the average person in this country.

§ LORD MERRIVALE
My Lords, as there was no adjustment of the figure after devaluation, does not the noble Lord think that there could be a case for considering a slight raising of the figure, bearing in mind devaluation? And would the noble Lord bear in mind that France, after the troubles of May/June, reimposed restrictions but has now, in effect, relaxed them, and there is complete liberty in that respect? If France can do it, does not the noble Lord think that this country can, too?

§ LORD BESWICK
My Lords, I agree with the noble Lord that there is a case but not a sufficiently strong case for making an adjustment in the present circumstances.

§ LORD STRATHCLYDE
My Lords, would it not be correct to say that the noble Lady's question is about a quarter of a century out of date?

§ LORD BESWICK
On the contrary, my Lords; I should have thought the 1346 noble Lady was talking about present circumstances, where many people from this country are contriving to go overseas and enjoy a holiday on the present travel allowance.

§ LORD BLYTON
My Lords, is my noble friend aware that the Opposition find that the £50 allowance is inadequate because the cost of living is so high in the Common Market countries?

§ LORD CONESFORD
My Lords, can the noble Lord say what other country has a comparable restriction to this? Can he also say why it is that apparently one may buy a Mercedes car, if one has the money and wishes to do so, but must not go for, I will not say a holiday, but longer travel in France?

§ LORD BESWICK
My Lords, I cannot give the noble Lord the information for which he asks in the first part of the question. I will make inquiries and let him know. As to the second part of the question, it is a good question, but not one which would cause my right honourable friend to change his attitude towards the restriction on foreign travel allowance.

§ LORD WYNNE-JONES
My Lards, can my noble friend say what country is comparable to Great Britain?

§ THE MARQUESS OF SALISBURY
What! In the badness of its position?