§ Mr. Proctorasked the Parliamentary Secretary to the Ministry of Civil Aviation whether he has any statement to make about associate agreements for scheduled air services in 1949.
§ Mr. LindgrenOn 21st July last, my noble Friend announced that he had 151W invited Lord Douglas of Kirtleside to investigate those Sections of the Civil Aviation Act which enable the Corporations to appoint associates and agents. One of the main purposes was to review the arrangements under which charter companies were permitted, during the summer of 1948, to operate scheduled services as associates of the Corporations. My noble Friend has given careful consideration to Lord Douglas's recommendations, and I am now able to make a statement about the general policy to be adopted for the future in relation to these associate services.
There are two main issues; firstly, the policy to be followed in the granting of associate agreements, and, secondly, the administrative arrangements for dealing with applications for such agreements. As regards the policy to be followed, Lord Douglas sees no need, at present, to amend the Sections of the Act which were the subject of his investigations. He has also suggested that, until British European Airways Corporation is in a position to provide all the scheduled air services in this country for which there is a justifiable demand, charter companies should, under certain conditions, continue to be allowed to operate certain classes of scheduled services as associates of the Corporation. My noble Friend has decided to adopt this course because, although the British European Airways Corporation is steadily expanding its services, it would place an unjustifiable burden on it and on the taxpayer, if the Corporation took over all these routes at the present time; and meanwhile my noble Friend would not wish to deny the public the benefit of such facilities as the charter companies are prepared to offer in this field. I may mention that in 1948, when the same general approach was adopted, the passenger-mileage operated on scheduled services by the charter companies represented only about 3 per cent. of that operated on internal services by the British European Airways Corporation. The other two Corporations are barely affected.
The administrative arrangements can and should be placed on a new footing. Lord Douglas has recommended, and my noble Friend agrees, that applications should be considered in the first instance by a body outside the Ministry, and that the Air Transport Advisory Council might conveniently undertake this task. 152W This proposal is acceptable to the British European Airways Corporation, and I am pleased to say that the Air Transport Advisory Council have agreed to undertake this work. The Council will, of course, act in an advisory capacity only, since the ultimate responsibility for approving associate agreements rests, under Section 14 (4) of the Civil Aviation Act, with my noble Friend as Minister.
In order that the recommendations of the Council shall be in accord with the policy of the Ministry, my noble Friend is issuing a Directive to the Council giving guidance in general terms about how they should treat applications for associate agreements. I append to this answer the terms of this Directive.
The Air Transport Advisory Council will shortly be announcing the precise procedure to be followed by charter companies in making applications for associate agreements and, in the meantime, it is desirable that no further applications for such agreements should be made direct to the British European Airways Corporation or to the Ministry.
Following is the Directive: