Before we continue with the Committee Stage of the Air Navigation and Transport Bill, I desire, with your permission, Sir, to make a statement. I promised the House to make a statement on the subject of transatlantic air services as soon as possible. As has already been announced, discussions took place in Ottawa in November last between representatives of the Governments of the Saorstát, United Kingdom, Canada and Newfoundland, regarding the establishment of an air service across the North Atlantic. Arrangements were agreed upon, subject to the approval of the Governments concerned, which has now been given, to enable survey flights to be undertaken and an experimental air mail to be established as soon as possible, to be followed eventually by a mail and passenger service on a minimum schedule of two flights a week in each direction. Discussions also took place immediately after the conference in Ottawa with representatives of the United States Government in Washington, with a view to securing the fullest measure of understanding and co-operation with the United States in the development of transatlantic flying. As a result, understandings were reached, based upon the principle of full reciprocity, which, it is hoped, will bring about as soon as practicable the establishment of a transatlantic air service connecting the countries concerned. The main details of the arrangements agreed between the respective Governments are as follows:—
1. A joint operating company which will be responsible for carrying on the services will be incorporated at the instance of three companies, of which one will be nominated for that purpose by the Government of Saorstát Eireann, one by the Government of the United Kingdom, and one by the Canadian Government. The board of directors will be nine in number, of whom three, including the chairman and managing director, will be nominated by the United Kingdom company, three by the Canadian company, and there by the Saorstát company. The capital of the joint company will be subscribed and held as to 51 per cent. by the United Kingdom company, 24½ per cent. by the Candian company, and 24½ per cent. by the Saorstát company. The control of commercial, technical and operating matters will be secured to the United Kingdom company through its majority stockholding and through the medium of the articles of association of the joint company, subject to the superior jurisdiction of the board of directors on questions of major policy.
2. In return for landing facilities to be granted to the joint company by the United States Government Pan American Airways will be granted landing facilities by the Governments of Saorstát Eireann, the United Kingdom, Canada and Newfoundland; and that company will participate on a basis of reciprocity with the joint company in the operation of the services.
3. In the operation of the services all practicable preference will be given to the direct route via Saorstát Eireann; Newfoundland and Canada; but it may be necessary during an initial period to operate the services via Bermuda during the winter months.
4. Experimental long distance flights and other necessary investigations will be carried out in the near future. The incorporation of the joint company will involve some delay and it has been arranged that experimental flights and investigations will be conducted by Imperial Airways, Limited (which is the company nominated by the United Kingdom Government for the purpose of participation in the joint company). The results of the experimental flights and investigations will be placed at the disposal of the joint company when it is established. It is understood that Pan American Airways will also be conducting experimental flights over the same route.
5. During the experimental stage flying operations will be financed by the Government of the United Kingdom. When the joint company assumes responsibility for flying operations it will receive an annual subsidy from the several Governments on an agreed basis. Of the total annual subsidy required, Canada will contribute 20 per cent. up to a maximum of £75,000; Saorstát Eireann, 5 per cent. up to a maximum of £12,000; and Newfoundland a sum to be agreed upon between the Newfoundland Government and the United Kingdom Government; the remainder will be made up by the United Kingdom Government. I may add here that the Saorstát Government will also be entitled to participate in the British Commonwealth air mail scheme if and when we so desire without payment of further subsidy, but only on a postal payment on the basis of mails carried.
6. Each of the four Governments concerned has undertaken to arrange for the provision of the necessary airport, radio, and meteorological facilities for the transatlantic service.
7. Each of the four Governments concerned has also undertaken to grant the necessary landing and transit rights within its own territory to the joint company and to Pan-American Airways. It is contemplated that unless otherwise determined by the consent of the four Governments such rights will be exclusive in respect of transatlantic air services for a period of 15 years; thereafter the question of exclusivity and the question of granting further financial assistance to the joint company will be reviewed.
8. An inter-governmental committee on transatlantic air services will be established consisting of four members appointed respectively by the Governments of the United Kingdom, Canada, Saorstát Eireann, and Newfoundland, to which will be referred for approval decisions or proposals of the joint company relating to transatlantic air services which may affect national policy or the relations of the Governments concerned inter se or with other Governments. All decisions of the inter-governmental committee will be reached by unanimous vote.
The Saorstát airport, with adequate radio and meteorological equipment, will provide all necessary facilities for flying boats and land machines, and will be constructed, owned and controlled by the Saorstát Government. Supplementary Estimates making the necessary provision will be laid before the Dáil in due course. At this stage, however, I think it may be useful if I give the House a general picture of our financial commitments in connection with the scheme.
The total capital outlay on the airport and on wireless and meteorological service in connection with the transatlantic air service is estimated at approximately £520,000; this includes approximately £20,000 for accommodation of a residential character for staff, for which it is intended to charge appropriate rents. The annual charges for operation, maintenance and depreciation are estimated at £50,000; of this £40,000 is attributable to the airport proper and £10,000 to radio and meteorological services. It is, I think, generally known that the rather limited meteorological service at present in existence in the Saorstát has hitherto been maintained by the United Kingdom Government. Arrangements are being made for the transfer of this service to the control of the Saorstát Government, and it is our intention to develop it into a first-class meteorological service, and I may say incidentally at this point that the United Kingdom Government has agreed to contribute £6,000 per annum towards the cost on the basis of services rendered.
There are two further points which may be of interest to the House. The first is that a suitable proportion of the Joint Operating Company's aircraft will be registered in the Saorstát. The second is that the Saorstát airport will be the first European port of call for all eastbound aircraft on transatlantic services on the direct route and the last European port of call for westbound aircraft on that route. The necessary arrangements will be made to enable traffic and passengers (when accommodation for passengers is available) to join the aircraft at the Saorstát airport.
