HL Deb 11 February 1986 vol 471 cc97-8

2.53 p.m.

Lord Rodney

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

The Question was as follows:

To ask Her Majesty's Government, in view of their declared policy of promoting a free internal market within the EEC, what action is being taken to liberalise air services to Europe.

The Parliamentary Under-Secretary of State, Department of Transport (The Earl of Caithness)

My Lords, we have agreed more competitive arrangements for air services with five European countries in the last 18 months. Discussions are under way with the Finns, Scandinavians, Italians and Spanish, and should shortly start with the Irish Republic. At Community level there is now an urgent need for concrete progress, and at the recent informal Ministers' meeting in The Hague it became clear that there is now a growing consensus in favour of real reform.

Lord Rodney

My Lords, I thank my noble friend for that encouraging Answer. Can he say whether there will be extra support and pressure when we take over the chairmanship in the near future?

The Earl of Caithness

Indeed, my Lords, we shall continue the good progress that the Dutch are making.

Baroness Burton of Coventry

My Lords, is it correct that Italy and Greece have not yet shown an inclination towards liberalising air services in Europe? What are our connections with them in so far as direct routes from this country are concerned?

The Earl of Caithness

My Lords, the Italians and the Greeks have been rather slow to realise the benefits of a liberal market, but we are exerting pressure from this country, and the Commission is doing so as well.

Lord Mackie of Benshie

My Lords, by "real reform" does the Minister mean that the air services will be able to compete without any restriction whatsoever on prices?

The Earl of Caithness

My Lords, what I mean by real reform is lower prices that are advantageous to the passengers.

Lord Underhill

My Lords, on this occasion the noble Earl used only the term "a liberal market" and has not talked about co-ordination; so is that still the Government's policy? In discussions with other countries, are we still emphasising the need for the maximum use of our regional airports?

The Earl of Caithness

My Lords, I did not mention co-ordination because I knew that the noble Lord would do so. I can only refer him to my Answer on 23rd January.

Lord Taylor of Gryfe

My Lords, will the noble Earl confirm the reference in the Question that it is the Government's declared policy to promote a free internal market in the EC? In view of the decline in the value of sterling in relation to other European currencies, does he accept that now might be the moment to look at our membership of the exchange rate mechanism?

The Earl of Caithness

My Lords, that is a very good question, but it does not relate to the original Question. If the noble Lord would like to put down a separate Question we shall seek to answer it.

Lord Bruce of Donington

My Lords, is the noble Earl aware that when he says that there is a growing consensus in Europe on the achievement of liberalisation that has a familiar ring? Almost seven years ago exactly, when I asked a Question about insurance services in the United Kingdom, the Front Bench opposite said that there was a growing consensus on the desirability for such services, but that still has not happened. Will the noble Earl please bear in mind that the achievement of independent agreements with the various EC countries is no substitute for an effective EC policy along the lines of the treaty itself?

The Earl of Caithness

My Lords, I welcome the noble Lord's support for the Government's hope of getting an EC policy. I hope that he will use every endeavour to make sure that his friends in Europe follow him.