§ Rear-Admiral SUETERasked the Secretary of State for Air whether he is aware that, as a result of money grants made by the French Government to French civil aviation companies, British newspapers and freight are carried by French aircraft between London and Paris at rates with which it is impossible for British aviation companies to compete; and whether some arrangements can be made to prevent this obvious undesirable state of affairs continuing and for traffic to be carried by British machines?
§ Sir S. HOAREThe answer to the first part of the question is in the affirmative. As regards the second part, the future policy in regard to civil aviation is now being considered, and I will bear in mind the suggestion of my hon. and gallant Friend when reviewing the question of the future subsidies to be granted to the air transport lines.
§ Mr. MURCHISONasked the Secretary of State for Air whether the original air-line subsidy, based on mileage and weight, was changed for a flat rate of £15,000 a year merely for 300 effective return flights, the majority of which maybe run in the summer months alone; and, if so, why was this done?
§ Sir S. HOAREThe answer to the first part of the question, which I take to refer to the London-Paris route, is in the affirmative, but I would add that under the agreement a specified number of flights must be carried out during the winter months. With regard to the second part, the former subsidy arrangement proved to be unsatisfactory, the traffic available not being sufficient for the three British companies who were competing for it on this one route, and the whole scheme was therefore recast in order to make the best possible use of the money available.
§ Mr. MURCHISONasked the Secretary of State for Air whether the new subsidy given as a monopoly to Handley Page Transport, Limited, for the London-Paris air route provides for the early daily carrying of British newspapers as well as for passengers; and whether the transport of passengers cannot be remunerative without subsidy?
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§ Sir S. HOAREThe answer to the first part of the question is that the new subsidy granted to the Handley Page Transport Company for the operation of the London-Paris route does not specifically differentiate between the carriage of passengers and goods, but leaves it open to the firm to carry that class of freight which they find most remunerative. The answer to the second part is that the transport of the comparatively small number of passengers at present travelling cannot be self-supporting without some form of direct financial assistance, but as the volume of traffic increases this position will improve and should ultimately right itself.
§ Mr. MURCHISONasked the Secretary of State for Air whether he is aware that the sale of British newspapers in France and Italy has been increased five-fold during recent months owing entirely to their early arrival by aeroplane in Paris and their distribution thence by early trains; and whether he is prepared to recommend giving a subsidy to air lines, which would be well applied in thus fostering international understanding?
§ Sir S. HOAREI fully appreciate the advantages of carrying British newspapers to the Continent by air, but while I recognise the importance of the early distribution abroad of these newspapers, I am not in a position to say whether it will be possible to find funds to provide a sufficient subsidy to enable these newspapers to be transported in British aircraft.