§ Baroness Burton of CoventryMy 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 what steps have been taken by the European Commission on the issue of liberalising air transport within the Community since the United Kingdom assumed the presidency of the Council of Ministers.
The Parliamentary Under-Secretary of State, Department of Transport (The Earl of Caithness)My Lords, The Commission announced on 10th July that it had decided to send letters to member states' airlines requiring them under Article 89 of the treaty, to bring to an end various concerted practices which the Commission see as infringements of the treaty. We welcome their initiative as a significant increase in the pressure for reform, and particularly as an incentive to the council to agree on a package of liberal measures for aviation.
§ Baroness Burton of CoventryMy Lords, if it is correct that the Commission has written to 10 airlines including British Airways and British Caledonian, can the Minister give the House the names of the other airlines concerned? Further, can the Minister say whether it is true that a time limit of two months has been given for replies, and to whom the replies should be sent?
The Earl of CaithnessMy Lords, I can confirm that there is a time limit of two months for replies to the letter, and those replies have to be sent to the Commission. The other airlines to whom the Commission has written on this particular point are Sabena, SAS, Lufthansa, Olympic Airways, Air France, Aer Lingus, Alitalia and KLM.
§ Baroness Burton of CoventryMy Lords, if, as I understand it, the Commission has powers of its own to deal with these matters, does that mean that it will 376 act on the replies independently of the Council of Ministers and thus avoid further delay? Can the noble Earl give the House the date of the next meeting of the Commission?
The Earl of CaithnessYes, my Lords, the Commission can act independently of the Council of Ministers on this matter. I cannot tell the House when the Commission next meets, but I can say that the Council of Ministers will be meeting formally on 10th and 11th November. It is hoped that my right honourable friend will be able to arrange an informal meeting in London in October.
§ Lord Harmar-NichollsMy Lords, is my noble friend able to say what the position will be if they do not reply to the letters?
The Earl of CaithnessMy Lords, it will be for the Commission to take what action it deems necessary through its powers under the Treaty of Rome.
§ Lord BethellMy Lords, is my noble friend aware that the British Government can also act independently by taking powers under Article 88 to enforce the treaty, in spite of the fact that many member governments of the Community are flagrantly breaking the law? Can my noble friend indicate when the Government are likely to take these powers and what the effect will be in bringing down the cost of European air travel?
The Earl of CaithnessMy Lords, as my noble friend rightly points out we can take matters into our own hands, but we believe that a better solution will be found, for the long-term good, by negotiation between all members of the Community rather than by individual states taking action. However, if we do not achieve a satisfactory solution by the end of our term of presidency, which will be the end of December, we will look at the matter again.
Lord Bruce of DoningtonMy Lords, is the noble Earl aware that many of the member states concerned, other than the United Kingdom, are very heavily—and I mean heavily—represented within the Commission itself? It is by no means certain, on the basis of the information that we have been given this afternoon, that there will be any collegiate directive issued by the Commission in view of the divisions of interest to which I refer.
The Earl of CaithnessMy Lords, the Commission is firmly of the opinion that there should be further liberalisation of the air transport market and it will pursue all means at its disposal to that end.
§ Baroness Burton of CoventryMy Lords, is the noble Minister aware of the very real feeling that because 1992 has been fixed as the year for the removal of all internal barriers within the Community there is a danger that the obstructing states may try to delay action until nearer that date? Can the noble Earl tell the House whether the British Government remain committed to their intention of achieving a first stage in these negotiations during the term of our presidency?
The Earl of CaithnessMy Lords, we remain committed to seeking an agreement with our partners in Europe, which is why my right honourable friend is seeking to have an informal council meeting before the formal Council meeting, where we hope substantial progress will be made.
§ Lord Harmar-NichollsMy Lords, is my noble friend aware that saying the Government will attempt to seek agreement falls short of using the powers mentioned by my noble friend Lord Bethell and what we could do? Is my noble friend in a position to say that if there are no replies, or if the replies are unhelpful, we will use the powers referred to?
The Earl of CaithnessMy Lords, I think we will be entitled to consider every option available to us if progress has not been made by the end of our presidency.