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Aviation History
1921
1921 - 0416.PDF
JUNE 23, 1921 The regulations say that subsidies will be paid to approved firms at the rate of 25 per cent, of their gross takings, providing the necessary number of flights are made. In such case, how far round would the £200,000 be likely to go ? It may be that "the Ministry has reserved to itself the right to deny approval under the " certain conditions " referred to in («) of the official communique, but the point,is not clear. There is a weakness present in the scheme, which we fear is inseparable from any form of subsidy pay- ment. It is that there is apparently very little incen- tive to efficiency either in machines or organisation. There is encouragement to maintain services up to the limit of the subsidy payments, but next to none to. develop and go ahead in the exploitation of new types of machines or the opening up of new routes. This is the principal evil which attends all Govern- ment subsidised industries, and cannot be helped. Unfortunately, we have had to argue the case for a subsidy in and out of season, but we have never believed that with the receipt of money from the State the whole troubles of the industry would be over. We do not like subsidies, but in the case of the aircraft industry, having regard to its bearing on Imperial defence, we have taken the line that it was better to suffer from the evil of the subsidised service than to see so important an industry die. <• <» » • There is another aspect of the subsidyAl J>tj er regulations to which attention may appropriately be given. It is made clear that when the net profit made by an approved firm has reached 15 per cent, of its issued capital, in any year, any excess of profit over this shall be repaid by the firm to the Ministry, up to the amount of the subsidy received. This is quite right. The subsidy is given to assist the industry and individual pioneer- ing firms to tide over the interval between now and the time the industry finds itself established and able to stand upon its own feet. It is in no sense intended to be " something for nothing." But the condition introduces the weakness that it may act as an incen- tive to an unprogressive firm to merely jog along, using inefficient machines, which will just ensure their getting the subsidy- There is a wide gap between the earning of the first 15 per cent, for the share- holders and the payment of any larger dividend, since there is the matter of the subsidy refund to come between. Again, it is not at all certain that this will be the effect of the arrangement. Indeed, we hope and believe that nothing of the sort would take place, but it is only right that the possible effect should be realised. On the other hand, it is still further possible that a firm owning and operating quite good and efficient machines may be deterred by this condition from giving the fullest service within its power. Instead of going all out to develop those services, they could, without doubt, simply operate their machines so as to earn the subsidy, pay their 15 per cent., and avoid making repayments altogether. It seems to us that there is more danger of this than of the other, but, as we have said, there are disabilities inseparable from Government subsidies of all kinds. In this case we think the Air Ministry has made the best terms pos- sible, and we trust that by mutual, goodwill and a desire to progress, the Ministry and the industry will be able to avoid the pitfalls and to assist in keeping British aviation where it should be. ^;s At the end of last week a party of members of Parliament was taken down Airships to Pulham, shown everything of interest on the station, and taken for a flight in " R. 36." At the same time, the enormous possibilities of the rigid airship for commercial use were fully explained by officers who have been intimately associated with airship work for a period of some years, and nothing was, we are assured, left undone to impress them with the potentialities of the airship as a transport vehicle. As a rule, we are inclined to look with an eye of suspicion on joy-rides given to members of Parlia- ment, borough councillors, and such, but in this case we can be very much more tolerant of the expenditure of what is, after all, a very small amount of public money in what we regard as an excellent cause. We are drawing near the end of the period set for the existence of the civil airship branch of the Air Ministry. The fiat has gone forth—though just how seriously it is meant we do not know—that unless something is done with the airships very shortly, they, together with all spares, stores, and surplus material, must be handed over to the Disposals Board. What will happen then we know only too well. The magni- ficent airships, once the pride of the Air Service, will probably be broken up and disposed of as so much junk. This would be a disaster of the first magnitude, and one to be avoided by all possible means. If it can be avoided by taking fifty members of Parliament, or the whole House of Commons, for a joy-ride, then we should consider the money well spent. Seriously, it is just as well to endeavour to create an atmosphere of interest in Parliament. There is the proposal of the Agent-General for New Zealand, discussed in these pages a week ago, to come up for consideration by the Imperial Prime Ministers. If anything should come of their discussions, we take it the necessity would arise for consulting Parliament as to the part to be taken by this country in develop- ing airship services within the Empire. The more, therefore, the individual member knows at first hand, the more likely he is to be well disposed towards such a scheme. Gen. Sykes and his able band of assistants are doing very well in their efforts to keep an airship service in being, and we wish them all success in the task. The half-yearly Report on the Progressof Civil Aviation has just been issued Department as a \yhite paper. It covers the period Civil from October 1, 1920, to 'March 31, Aviation 1921, and although the Report bears the title we have quoted, it, unfortu- nately, records very little that we can justifiably call progress in British civil aviation during the period under review. We publish a brief summary of the Report in another part of this issue of FLIGHT, from which our readers will be able to gather some of the more salient features. On the material side, steps have been taken to improve the ground organisation at the Customs stations at Waddon and Lympne. The installation at the former aerodrome of a night-lighting system to permit regular night-flying has been nearly completed, and steps have been taken to erect two new aerial lighthouses on the English section of the London- Paris air route. On the scientific and meteorological sides, considerable advance has been made in several - 416
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