asked the Secretary of State for the Colonies why a tax of 9d. a gallon on aviation fuel is charged to private users and charter companies in East Africa, when this tax is not levied on East African Airways Corporation.

East African Airways Corporation is exempted from this tax because it is a non-profit making public utility which is subsidised by the East African Governments.

Is that not another example of so-called State enterprise being prejudiced by favourable taxation as against private enterprise?

No, Sir, I think not. This is a decision taken by the three African Governments involved.