HC Deb 18 February 1948 vol 447 cc1144-7
26. Mr. Proctor

asked the Parliamentary Secretary to the Ministry of Civil Aviation what were the financial arrangements upon which the British South American Airways terminated the services of Air Vice-Marshal Donald Bennett.

32. Squadron-Leader Sir Gifford Fox

asked the Parliamentary Secretary to the Ministry of Civil Aviation if he will now make a full statement about the reasons for the dismissal of Air Vice-Marshal Bennett.

Mr. Lindgren

I will, with permission, make a statement at the end of Questions.

Later

Mr. Lindgren

The following is the statement in answer to Questions Nos. 26 and 32:

The Boards of the Corporations are responsible for making and terminating appointments to the post of Chief Executive. This is not, therefore, a matter in which, strictly, my noble Friend has a responsibility to Parliament. In view of the circumstances of this case, however, he considers it right that a full statement should be made.

The Chairman of British South American Airways Corporation informed my noble Friend, on Monday, 9th February last, that the Board had met that day to consider the serious situation which had been created for them as a result of statements made by the Chief Executive in an interview reported in a daily newspaper on 5[...] February. The Chairman said that the Board had unanimously concluded that these statements were in contradiction of the considered views of the Board, of which the Chief Executive was aware. Moreover, this was not an isolated instance of its kind, and was the culmination of a series of differences between the Board and the Chief Executive. They had accordingly lost confidence in him, and had decided that they had no option but to dispense with his services. He had refused the Board's suggestion that he should tender his resignation, and the Board were therefore obliged to dismiss him.

On Tuesday, 10th February, formal confirmation was received from the Chairman of the Board's decision, and my noble Friend was informed that notification of dismissal had reached Air Vice-Marshal Bennett. He was also informed that the Board were making a gratuitous payment of £4,500 to Air Vice-Marshal Bennett as compensation for loss of office.

Mr. Mikardo

Will my hon. Friend give Air Vice-Marshal Bennett every possible assistance with his conscience, in order to enable him to take this money from the nationalised industry of which he does not approve?

Mr. Bowles

Is my hon. Friend aware that I, and various other Members of the House knew, when we returned after the Christmas Recess, that four things were going to happen—that B.S.A.A.C. was going to make £25,000 profit; that Air Vice-Marshal Bennett would resign from his post; that accidents would happen; and that he was seeking a very important position? It was only in the matter of order that it was wrong, because Air Vice-Marshal Bennett resigned after the accident and not before.

Mr. Speaker

The hon. Member rose to put a supplementary question, but seems to be giving a lot of information.

Mr. Bowles

The point I am trying to put is, in view of the fact that it was known that these things were going to happen, should this man be paid because of a position that he wanted to vacate and vacated by his own will?

Mr. Lindgren

That is a matter of management, and decision by the Board.

Air-Commodore Harvey

Was the £4,500 free of tax? If these differences had been going on for some time upon the Board, why did not this position come about some months ago?

Mr. Lindgren

So far as the tax is concerned, the question should be addressed to my right hon. Friend the Financial Secretary to the Treasury.

Mr. Hale

What financial arrangements were made when lower grade workers were dispensed with several months ago?

Mr. Lindgren

Generally, if one is a workman, it is misconduct, and you collect your cards. If one is a chief executive, it is loss of confidence, you are asked for your resignation and you get a year's salary.

Mr. Ivor Thomas

Would the Minister of Civil Aviation have any objection to Air Vice-Marshal Bennett making known his side of the case, since matters have become very confused, and would he give him access to any documents for the purpose?

Mr. Lindgren

In my opinion, Air Vice-Marshal Bennett appears to be doing so very successfully.

Mr. Henderson Stewart

The Parliamentary Secretary has told us what the Corporation have reported to him, hut he has not indicated whether his noble Friend has heard both sides of the case and has come to any conclusion. What is the Minister's considered opinion?

Mr. Lindgren

It is not for the Minister to come to a conclusion on that point. It is a matter for the Board.

Mr. Beswick

There are rumours that the former chief executive had given instructions to Tudor pilots that they were not to report any aircraft defect in the Tudor aircraft log. In fairness to all concerned, can the Parliamentary Secretary confirm or deny those reports?

Mr. Lindgren

I can do neither. Rumours have reached us, but I think it is far better that they should be a matter for investigation when the inquiry, which my noble Friend will institute, takes place.

Mr. Thomas

Is Air Vice-Marshal Bennett still a member of the Board of the B.S.A A.C.?

Mr. Lindgren

No, Sir. He has ceased to be a member of the Board. He failed to resign, and therefore my noble Friend declared the position vacant.

Mr. Boothby

If the Minister of Civil Aviation is not required to come to any decision on the matter of the chief executive of one of the main Corporations, what function does he discharge?

Mr. Lindgren

He appoints the Board.

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