§ 76. Mr. de Freitasasked the Secretary of State for Air whether he will make a statement on the future of the Malcolm Clubs.
Mr. WardThe future of Malcolm Clubs has already been under consideration for a year or more. There are at present 11 clubs in Germany, two in the Far East and one in this country.
Malcolm Clubs have been in debt to the Air Ministry for some years. This has remained true notwithstanding the fact that since January, 1957, they have received a subsidy of about £30,000 a year from Air Votes to off-set the loss of the concessional Deutschemark rate in Germany. Indeed, the amount of the debt has increased during that period.
The Air Council examined the position of Malcolm Clubs in July last and formed 63W the opinion, firstly, that there was little prospect of the Air Ministry debt being repaid within a foreseeable time even allowing for a continued subsidy, and, secondly, that there was, in the nature of things, a risk, which the Air Council could not ignore, that the amount of the debt might further increase. Having given full weight to the value of the welfare services provided by Malcolm Clubs, the Air Council concluded that the situation ought not to be allowed to continue and that the Clubs ought to close. Malcolm Clubs were notified accordingly. I must make it clear that the Air Council reached this decision on the basis solely of their study of the facts and in no sense in response to pressure from any other organisation.
Since that time it has been understood that Malcolm Clubs have been seeking financial help from outside sources and my Department has been anxious to do nothing that might prejudice their efforts. I have not, however, been informed of any success in this direction and in these circumstances I consider that the process of closing the Clubs should begin.