HL Deb 23 January 1974 vol 348 cc1437-8
LORD TREFGARNE

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

The Question was as follows:

To ask Her Majesty's Government whether they will permit the Civil Aviation Authority to postpone the date by which the Authority must achieve financial self-sufficiency, thus mitigating the heavy cost increases now falling upon United Kingdom airlines by virtue of the Authority's increased charges.

LORD ABERDARE

My Lords, the greater part of the increases in charges levied by the Authority will bear on British and foreign airlines alike. The Government will also expect the C.A.A. to review critically the whole range of its costs now that it has introduced financial management on a commercial basis. In these circumstances my right honourable friend sees no need to propose any variation in the Government's financial guidance to the Authority.

LORD TREFGARNE

My Lords, while thanking the noble Lord for that reply, may I ask whether he is aware of certain charges that relate only to British airlines? I am referring in particular to the charges for new airport transport licences that have been increased by several hundred per cent. in the past few months. Is it reasonable that British Airlines should now be called upon to accept these increases?

LORD ABERDARE

My Lords, so far as the licence fee increases are concerned, I am advised that the increase in the industry's operating cost is well under ½per cent., and the new fees provide for varying charges according to the amount of traffic carried. I would hope that this will enable operators to absorb them without undue hardship.

LORD BLYTON

My Lords, in view of the state of our financial affairs and the serious economic position, does the noble Lord not think that he ought to tell his right honourable friend and the Conservative Party—heaven forbid the probability!—that they ought now to bring out the begging bowl?

LORD ABERDARE

My Lords, we think it is right that the cost of the services which are for the benefit of the airline operators and those that use them should be borne by them, and not by the taxpayer.

LORD SHACKLETON

My Lords, could the noble Lord state how the charges at British airports compare with those at other airports? Would he not agree that, while the increases may be hard on foreign airlines, who do not necessarily have to come to British airports, the British airlines do, and to that extent may be more heavily handicapped?

LORD ABERDARE

My Lords, the major or most important of these charges are in respect of the en route navigation services. These are negotiated by Euro-control which comprises most of the countries of Europe, so that all of the airlines using European air space are in fact paying the same charges.

LORD BALFOUR OF INCHRYE

My Lords, it is scarcely fair that British civil aviation, particularly on the interlines, should have not only to bear the increased costs which every operator has to carry, but should now have to carry an extra charge for the administration of a Government agency. Surely it is a little unfair to make this double impost upon civil aviation.

LORD ABERDARE

My Lords, we do not think it is such a heavy impost and it does not seem to us at the present moment that there is any need to change our policy which, as I say, is that the users rather than the taxpayers pay for the service.

LORD BALFOUR OF INCHRYE

My Lords, will the noble Lord keep this matter under review in case there is a heavy impost on civil aviation making it even more uneconomic than it is?

LORD ABERDARE

My Lords, most of the Civil Aviation Authority's charges require either the approval of the Secretary of State or consultation with him. But I certainly take my noble friend's point.