§ 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 whether, following ratification, the Single European Act has become effective; what is now the position concerning Article 87 of the Treaty of Rome and its effect on the liberalisation of air transport in Europe; and whether they will make a statement to clarify the position as it now stands.
§ The Parliamentary Under-Secretary of State, Department of Transport (Lord Brabazon of Tara)My Lords, the Single European Act came into force on 1st July. As a result, proposals for liberalisation of air transport made under Article 84 of the treaty can now be decided by the Council of Ministers acting by qualified majority. There is no change in the legal position regarding application of Article 87.
§ Baroness Burton of CoventryMy Lords, can we take it from the reply that the Minister has just given, and referring to an Answer he gave the House on 9th July, that the Commission and the European Parliament have completed the new procedures required for the Single European Act? If they have not, when do they expect to do so? Can he tell the House whether the Commission has withdrawn its list of exemptions to the competition rules of the treaty?
§ Lord Brabazon of TaraMy Lords, completion of arrangements for bringing the package back to the Council depends on a further opinion from the European Parliament, which cannot now be delivered until after the summer break. On the noble Baroness's second point, the Commission does not intend to withdraw its proposals for giving group exemptions, as that would have the effect of destroying the package.
§ Baroness Burton of CoventryMy Lords, can the Minister help further on that? Not knowing the date when the European Parliament returns to its work, does he anticipate, as he still cannot give an answer, that these matters will be discussed on 26th October at the meeting of the Air Transport Ministers Council?
May I also ask a further question which I think will be of interest to the entire House? Did the Minister note earlier this week a statement, repeated with 1478 much more force and with much more detail today, that the Commission would be keeping a watchful eye upon the proposed merger of British Caledonian and British Airways in order to see that the competition rules of the Treaty of Rome were not infringed?
§ Lord Brabazon of TaraMy Lords, I cannot give the noble Baroness a positive answer to her first question about whether the European Parliament will have completed its deliberations by October. I very much hope that that will be the case, but it certainly will have done by December.
As to the noble Baroness's second point about the view on the BA-BCal proposed merger, I am afraid I cannot speculate on such matters, as the proposed merger is under consideration by the Director General of Fair Trading. I am sure that my noble friend the Secretary of State for Trade and Industry will take all relevant factors into account in considering the director general's advice in due course; but it is true to say that the Commission is indeed taking an interest in this matter.
§ Lord Harmar-NichollsMy Lords, is my noble friend aware that when the workings of the European Parliament and the Commission are being discussed, the lack of clarity as to what they mean and what their procedures can do is very frustrating on matters such as that which the noble Baroness has raised, which require specific, clear answers so that people can operate?
§ Lord Brabazon of TaraMy Lords, I am not sure that I can assist my noble friend. It is a matter for the European Parliament and for the Commission.
§ Lord Bruce-GardyneMy Lords, can my noble friend go one tiny stage further than he did in his Answer to the noble Baroness? Can he shed any light on whether Her Majesty's Government would view with enthusiasm or dismay the interest which the Commission is taking in the BA-BCal merger?
§ Lord Brabazon of TaraMy Lords, I am afraid I can go no further than I already have in my Answer.
§ Lord Taylor of GryfeMy Lords, can the noble Lord answer as to the powers of the European Commission in commenting on the proposed merger? Do I assume that the ruling of the Office of Fair Trading will be what will guide Her Majesty's Government rather than a European Community directive?
§ Lord Brabazon of TaraMy Lords, we are straying from the Question on the Order Paper, which is about the liberalisation of European air transport in respect of the package which we have discussed on many occasions. I am afraid I can go no further on the subject of the merger.
§ Baroness Burton of CoventryMy Lords, if I can remember what the Minister said and phrase my questions succinctly, is he aware that I did not ask him for an opinion? I asked him for a simple answer to two simple questions. Is he aware that he told the 1479 House on 9th July that until these various procedures had been agreed with the European Parliament it was not possible to tell the House whether at the meeting on 26th October air transport would be included in the agenda? Can he say whether or not it will be included in the agenda?
Secondly, arising from the proposed merger, again I did not ask for an opinion. I asked whether it was correct that the Commission would be looking at the proposed merger in order to see that the competition rules were not infringed.
§ Lord Brabazon of TaraMy Lords, I answered that question when I said I understood that the Commission is interested in the case. On the noble Baroness's first question, I very much hope that the European Parliament will have considered the matter by the October Council. I cannot give a guarantee on that. In any case I would hope that if it has not done so by then it will have done so by December.
§ Lord WhaddonMy Lords, is the Minister aware of the concern expressed earlier this week by the small airlines in the United Kingdom regarding the proposed merger and their fear that competition will be undermined? Is he further aware that many of us have the sneaking feeling that, having abandoned their belief in monetarism, the Government may now be abandoning their belief in competition in the public interest?
§ Lord Brabazon of TaraMy Lords, we are going a very long way from the Question on the Order Paper. I have already said that I cannot speculate on the matter as it is in the hands of the Director General of Fair Trading at the moment.