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Aviation History
1936
1936 - 0761.PDF
328 FLIGHT. MARCH 26, 1936. was Btifl. steadily increasing. He was glad to think that the demands have already absorbed so substantial an amount of laboui, and would continue to do so. Turning to the question of prices, Sir Philip said that the departmental machine for price control had been greatly strengthened. This applied in particular to the technical cost ings staff, which investigated manufacturing costs, and the costs accountants, who dealt primarily with firms' overheads. Work was at present proceeding almost entirely on a basis of what were called l.T.P.'s, that is, Instructions to Proceed. This form of contract incorporated a clause providing that, if a fair price could be agreed, the final price would be deter mined only after full examination of the contractor's books by Air Ministry accountants on completion of the contract. Meanwhile, the contractor received "progress payments" as the work proceeded, based on a percentage of a " pro visional " price. The latter was, of course, below the ultimate price which the department expected to pay. Market Values Ignored Market values were, of course, entirely ignored. The Government deprecated strongly the tendency there had been to an excessive advance in quotations on the Stock Exchange; but that had had and would have no effect whatever on contract prices. Nor did they depend wholly on departmental experi ence and resources. At the start they called in an Advisory Committee consisting of Sir Hardman Lever, Mr. Ashley Cooper, and Mr. Judd, whose outstanding qualifications were well known to every member of the House. They relied on this committee for advice on questions of principle as well as on individual prices They are also available to arbitrate in any disputed cases. To date, few prices had been finally fixed, but the contracts were none the less under way. Their aim in all this new ^procedure was a dual one. First, to ensure that there should be no opening for any form of profiteering. Second, to see that industrial enterprise had its fair reward and to encourage the efficient producer. It was there, he ventured to submit, that true economy lay. The second half of Sir Philip's speech dealt with civil avia tion. Though subsidies (he said), primarily to Imperial Air ways, were down by about 15 per cent., the civil aviation vote (Vote 8) was up by ^164,500, or approximately 28 per cent. The bulk of this increase was for technical equipment, which was required for the improvement of ground organisa tion, both at home and overseas. In the latter case their object was to facilitate night flying and in general to pave the way for services of greatly improved speed and frequency. He was glad to say that, in so far as concerns the African route, complete agreement had been reached with the Unicn of South Africa, and, subject to a few points of detail, with the Governments of most other African territories con cerned. As regards the Eastern route, negotiations were still proceeding with Australia, which had felt difficulties over certain particulars. They were most anxious to have the full co-operation of that great Dominion. He could say no more at this stage than that they were still hopeful of arriving at a mutually satisfac tory basis of agreement. Imperial Airways' Fine Figures On the basis of ton-mileage carried in relation to subsidy, Imperial Airways had achieved a most satisfactory measure of success. Their subsidy last year was little more than a third of that enjoyed by their French, and about two-thirds of that paid to their Italian competitors. He could not give a comparable figure for the Dutch, since, in addition to direct subsidy, they paid a substantial indirect postal subsidy. The ton-mileage carried by Imperial Airways, in the latest twelve months' period for which figures are available, was roughly 25 per cent, greater than the corresponding French figure, 50 per cent, greater than the Dutch, and more than 150 per cent, greater than the Italian. This would have been a satisfactory achievement if Imperial Airways received the same subsidy as the national air trans port organisations of countries such as France and Italy. Con sidering their much lower subsidy, it surely reflected great credit on the company's organisation and management. " In 1935," said Sir Philip, " Imperial Airways' share of the cross-Channel passenger traffic, between Croydon and the Continent, once again substantially exceeded that of all foreign companies—French, Belgian, German, Dutch and Swiss—com bined." Going on to defend the so-called "monopoly" policy, Sir Fhilip put forward some sound arguments, stressing, inter alia, the undesirability of dissipating both public and private effort and money over a number of competing organisations rather than concentrating them to the best advantage. How could it be, he asked, that the lessons learnt by painful and costly experience in almost every other field of transport and communications should not apply also to the air r In other air transport spheres, where no wasteful competi tion would result, they were prepared, within the limits of available resources, to assist any other organisations which seemed to them to merit support. It is in accordance with that policy that they had recently decided to entrust to British Airways, Ltd., the operation of Scandinavian services. Thev might follow the same course elsewhere at a later date. Un acknowledged the public-spirited attitude of Imperial . Air ways in this matter. Sir Philip, after reviewing transatlantic and Empire route plans, and internal air-line progress, came to the subject of private owners and clubs, and characterised development in this field as satisfactory. At the end of December last there were 589 privately owned aircraft on the Register, as com pared with 478 twelve months peviously—an increase of over 23 per cent. There was a total of 1,535 civil aircraft registered in this country at the end of 1935, which showed an overall increase of 30 per cent, above the figure for 1934. There were now 4 t light aeroplane clubs receiving subsidy. In addition, there were some 26 unsubsidised clubs. At the end of December the total flving membership of the subsidised clubs alone was 5,968. On a basis of comparative populations, there were again this year proportionately more private pilots in this country than in the U.S.A. Co-ordination of Administration They had to provide more effective machinery for the co ordination of the various State departments concerned with civil aviation. Two important committees had been set up in the course of the year to ensure effective co-ordination. The first of these was a standing committee under the Chairmanship of the Permanent Secretary of the Treasury. Its primary function was to deal with questions of international air communications. The second was an ad hoc commmittee, of which Sir Henry Maybury was chairman. It was appointed to consider and report upon measures for the development of civil aviation in the United Kingdom. He hoped that this latter committee would be in a position to submit a report at an early date. Sir Philip concluded by, in his own words, picking up tfi<- thread with which he had opened. Members in all quarter of the Hotise, he said, might well ask : "Where are we head ing? What of the future? Is there no alternative to a rapidly accelerating race in air armaments? " He would say with all the emphasis at his' command that His Majesty's Government had not abandoned, and would not abandon, hope of securing an air pact in Western Europe— and perhaps in due course a pact of wider scooe. They still hoped to see a Convention for the limitation of air armaments at whatever figure other nations might be willing to accept. Regarding the present international situation, the influence of this country would be exerted to its utmost in the cause of understanding and appeasement. Meantime, they could not remain un-armed in a world that was rapidly arming. above all, in the air. There were two all-compelling reasons for the course of ex pansion upon which Britain had embarked. They must be in a position to make attack upon these islands too dangerous to contemplate. They must be strong enough to play an effec tive part in the system of collective security to which they were pledged, and to turn to more temporate views all who may be tempted to set force above conciliation. " The experience of the past few years has proved that un balanced air armaments are a standing threat," said Sir Philip. " Let us try the other road. Air Forces balanced by international agreement may well constitute themselves the most powerful guardians of law and order/ They may prove to be the nearest approach to that International Air Police Force which some Hon. Members would like to see; but which I do not myself believe to be practicable to-day, or for many a long year to come." . Sir Philip'^ final observation was that there was a growin0 community of spirit among airmen of whatever nationality which might ultimately exercise a profound influence ovi world relations. "Wings over the world," he said, "may on day prove the greatest force for peace mankind has yet se Let us all hope that it may be so."
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