CONCORDE SERVICE BETWEEN LONDON AND SINGAPORE

Mr Tan Soo Khoon asked the Minister for Finance (a) whether the short-lived Concorde service to London by Singapore Airlines has caused undue embarrassment and loss of prestige to SIA; (b) why SIA did not obtain clearance for flying the Concorde over foreign air space before entering into an agreement with British Airways to operate the Concorde; (c) how much money was spent by SIA in Singapore and abroad to publicise its Concorde service to London: and (d) what other financial repercussions are anticipated for SIA as a result of the cancellation of the service.

Mr Goh Chok Tong (for the Minister for Finance): Sir, it is premature to refer to SIA's Concorde service as "short-lived" or "cancelled".

The issue of traffic rights falls outside the province of my Ministry. Concorde overflight is a matter for the British and Malaysian authorities.

Singapore Airlines does not believe it has suffered any "embarrassment" or "loss of prestige" from the suspension of Concorde services. It is a victim of circumstances. It will continue to improve air services into and out of Singapore for Singaporeans and other residents of the Asia-Pacific region.

I am not prepared to answer the question on the amount of money spent by SIA on publicising its Concorde service. I hope that the hon. Member for Alexandra will understand the need for and respect the confidentiality of sensitive commercial and financial information of companies in Singapore, even if they are Government-owned.

Mr Tan Soo Khoon (Alexandra): Sir, to announce with triumph, grandeur and lots of fanfare, the arrival of the supersonic service that would, in the Senior Minister of State's own words (Hansard, 9.11.97, col. 154), "position SIA firmly in the forefront of the airlines of the world", only to find out a short while later that all is not what was made out to be - if this has not been embarrassing enough to SIA, is it not a case of pulling wool over one's own eyes?

Mr Goh Chok Tong: Sir, the question was whether SIA suffered any embarrassment. I have given my reply that SIA does not believe that it has suffered any embarrassment or loss of prestige. I think that should be good enough.

Mr Tan Soo Khoon: Sir, I asked the Senior Minister of State whether it was a case of pulling wool over his own eyes. But since he cannot answer that question, I would like to move on to the next supplementary question.

The Senior Minister of State seems to have evaded the salient point in this issue in his reply and, that is, as much as it was the job of the British Government to obtain clearance of foreign air space, was it also not the responsibility of SIA to ascertain that its partner in this joint venture was in a position to deliver the goods before signing a 10-year agreement?

Mr Goh Chok Tong: Sir, the answer has been very explicit. That Concorde overflight is a matter for the British and Malaysian authorities.

Mr Tan Soo Khoon: Sir, when the Hon. Senior Minister of State says that the financial losses are too sensitive, to be revealed, does he mean that the losses were therefore far from minimal?

Mr Goh Chok Tong: Sir, that was never implied. What I have said was that commercial information is a matter of confidentiality for commercial companies and that I hope the Member for Alexandra would appreciate the need for such confidentiality of companies' financial data, even if they are Government-owned.