HL Deb 21 February 1991 vol 526 cc647-8

Baroness Burton of Coventry asked Her Majesty's Government:

How they assess the completed Stage 1 of their own slot allocation consultancy; and whether they have received the draft regulation on slot allocation sent by the Commission to member states.

The Minister of State, Department of Transport (Lord Brabazon of Tara)

My Lords, in completing Stage 1 of the study, the consultants have achieved some useful work. My right honourable friend the Secretary of State for Transport has asked them to proceed to Stage 2 of the study, and to present a further report to him in the summer. We have now received the Commission's proposal for a regulation.

Baroness Burton of Coventry

My Lords, perhaps I am an optimist but I had hoped for more information in detail to be given to the House this afternoon. The Minister has overlooked the first part of the Question. Will he give us his assessment?

Secondly, do the Government feel that progress in their own slot allocation consultancy is working well with that put forward by the European Commission?

Lord Brabazon of Tara

My Lords, as I said in my original Answer, we believe that the consultants have done some useful work. The Government see the work of the consultants as a valuable contribution to the discussions about the EC proposals. The consultants will focus initially on two slot allocation methods. One is a modification of the type of system proposed by the EC; the other is a more radical proposal incorporating an element of market forces.

Lord Clinton-Davis

My Lords, since slot allocation is so relevant to the negotiations with the United States concerning the renegotiating of Bermuda 2, can the Minister inform the House as to the progress of those negotiations?

Lord Brabazon of Tara

My Lords, the negotiations with the United States are proceeding. We hope that there will be further discussions with them before too long. The issue of slot allocation is not wholly relevant to those negotiations. The issue of the traffic distribution rules is much more relevant.

Lord Clinton-Davis

My Lords, as regards the rights at present allocated to Pan Am, since that company is, to say the least, in a delicate situation—as is TWA —does the Minister agree that slot allocations assume great importance in the discussions with the United States? I repeat my question: is he able to inform the House on the progress of the current negotiations? In particular, does he recognise that it was never intended in the first Bermuda 2 negotiations that there should be any automaticity on the transfer of such rights from one airline to another?

Lord Brabazon of Tara

My Lords, as to the latter part of the noble Lord's question, that is perfectly right. That is why we have our present negotiating position. As I said before, negotiations are proceeding and I hope that we shall be able to make progress before too long.

Baroness Burton of Coventry

My Lords, did I gather from the Minister's original Answer that the Government allocation consultancy will make three reports to the Minister? If so, is there any chance that we may learn anything about the subject of those reports, although not the content?

Lord Brabazon of Tara

My Lords, I did not mention that there may be three reports. The consultants have been asked to proceed to the second stage of their study. The Stage 1 report has been published and is available in the Library of the House, as well as having been circulated to interested parties.

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