HC Deb 06 April 1978 vol 947 cc169-70W
Mr. Trotter

asked the Secretary of State for Trade, further to his reply to the hon. Member for Tynemouth of 10th March 1978 indicating that the Government's reason for not accepting the proposal acceptable to the United States Government for low transatlantic fares to destinations other than New York was the right to ensure that long-term considerations of efficiency, safety and the ability to invest in new and quieter aircraft were not impaired, what change in these factors has subsequently led to the Government's decision to accept the proposals.

Mr. Clinton Davis

, pursuant to his reply [Official Report, 5th April 1978], gave the following information:

As I indicated to the hon. Member on 10th March, we had misgivings about the proliferation of these experimental low fares. But, as my right hon. Friend said in his reply of 20th March, after detailed discussions with the United States authorities we have agreed to accept the new fares to and from all the United States gateways for an experimental period subject to the important proviso that the conditions of competition must be equal and that the number of seats available at these fares shall be limited on most routes.

We have also agreed with the United States that this experiment will be reviewed in the autumn in partnership with other European countries and with Canada. In that review, we shall be taking closely into consideration the factors to which the hon. Member draws attention.