Mr. Creech Jonesasked the Secretary of State for Dominion Affairs whether, in view of the depressing conditions and recurrent depression and retrogression in economic and social matters in Newfoundland as recorded in the 1938 Report, he will reconsider whether the Dominion should be called on to find the sixth of the extra capital cost for the Newfoundland air base and one-half the net cost of maintenance on completion?
§ Sir T. InskipI do not feel able to adopt this suggestion. The hon. Member will appreciate that the liability of the Newfoundland Government in respect of capital cost is, in effect, met from the annual grant-in-aid to Newfoundland from the United Kingdom Exchequer. As regards maintenance costs, the agreed arrangements between the Newfoundland Government and the Air Ministry will not come into effect until the construction of the airport is completed. The basis of allocation will be subject to review after five years in the. light of actual experience of the working of the airport.