asked the Minister for Transport and Power whether he proposes to take any steps to prevent an increase in cross-channel air fares; and, if not, why.
Ceisteanna—Questions. Oral Answers. - Cross-channel Air Fares.
49.
Mr. O'Donnell
If the Deputy will refer to the Aer Lingus accounts for the year ended 31st March, 1971, he will see that after paying interest, the company had a net profit of £213,000 on revenues totalling £18.39 million, that is to say they did little better than break even. If for reasons beyond the company's control costs continue to rise, and that is still the position, I must be prepared to authorise reasonable fares increases so that the company may continue to provide the services necessary to meet public demand. This demand is evidenced by the 9 per cent traffic growth on the company's cross-channel services in the year ended 31st March, 1971.
I have not yet received the company's proposals for cross-channel fare levels in the year commencing 1st April, 1972. If and when I receive such proposals I will deal with them in the light of the considerations I have just mentioned.
Mr. O'Donnell
Does the Minister realise that any further increase in cross-channel fares would have disastrous repercussions on our tourist industry in the coming season, that a further increase would deprive the bulk of our traffic, our own people coming home on holidays, of the ability to travel, and would he take this matter up with Aer Lingus? I believe that if fares were reduced the volume of traffic would increase to such an extent that no loss would be sustained.
I am well aware of what the Deputy has in mind, but the problem is to ensure that fares do not increase to such an extent as to damage the tourist business but at the same time ensuring that we keep Aer Lingus in a financially viable position.
Mr. O'Donnell
Can the Minister explain why it is that the plane fare from London to Belfast, one hour 15 minutes flight, is £5 cheaper than from London to Dublin which takes one hour and five minutes?
How is it that one of the lines operating on the Dublin-London route can fly half plane loads to the Continent for a fraction of what they charge on the Dublin-London flight?
I am looking into this very actively at the moment. As I have said, there are the two viewpoints in relation to the tourist industry and in relation to Aer Lingus and the maintenance of employment there of more than 6,000 people.
It is not the employment factor which is causing the increased costs. There is another reason.
I am most concerned about the 6,000 people employed in Aer Lingus.
We are all most concerned about them but there is another reason why the costs are going up and the Minister should have a look at it.
I am having a look at it.
Is the Minister aware of how sorry we are at the amount of work he has to do, that he is not sleeping at all because he is so active?
Is that a question?
Yes—is the Minister aware of how sympathetic we are?