TNAG-0870-FCO40-1080-Air-services-between-Hong-Kong-and-the-UK-1979 — Page 72

DEPARTMENT OF TRADE

1 VICTORIA STREET

LONDON SWIH OET

TELEPHONE DIRECT LINE 01 215 3212

SWITCHBOARD 01 215 7877

24 July 1979

CIVIL AVIATION ACT 1971 AND THE POLICY GUIDANCE

The

Section 3(1) of the Civil Aviation Act 1971 sets out certain objec- tives to be pursued by the Civil Aviation Authority, and section 3(2) enables the Secretary of State to give guidance to the Authority with respect to the performance of its functions. objectives at 3(1)(a) and (b) have equal status; that at 3(1)(c) is subordinate to them; and that at 3(1)(d) is subordinate to the other three.

In Laker Airways v Department of Trade the Court of Appeal placed and more- an unexpected interpretation upon sub-section 3(1)(b); over the change in the status of British Airways (announced by the Secretary of State on 20 July) makes some change in that paragraph necessary. The court's decision in the same case held two para- and action graphs of the current Policy Guidance to be invalid;

is necessary in consequence of this. The Secretary of State has been considering what should now be done and has asked me to invite you to give your opinion upon the proposals which I shall set out below.

and making There would

and the

The first change the Secretary of State has in mind is to simplify section 3(1) by repealing sub-paragraphs (b) and (c); the present sub-paragraph (d) rank equally with (a). thus no longer be any statutory preference or handicap for any airline on the grounds of public or private ownership; reasonable interests of users of air transport services would no There would also no longer be subordinated to other objectives. longer be a duty.on the CAA to encourage the contribution of the industry to the balance of payments, on the grounds that this is contained within the objective set out in S.3(1)(a):

The Secretary of State also has it in mind to abandon the concept of giving Guidance to the Authority in writing supplementary to the statutory objectives. Instead he proposes that there should be written into the Act itself the criteria which the Authority should be required to take into account in carrying out its air transport licensing functions.