HC Deb 30 June 1948 vol 452 cc2199-200
33. Mr. Ernest Davies

asked the Parliamentary Secretary to the Ministry of Civil Aviation if he will direct the airways corporations to require that none of their high executives shall hold a financial interest in private aircraft companies operating in or from the United Kingdom.

Mr. Lindgren

No, Sir. This is a matter which may safely be left to the discretion of the Boards of the Corporations.

Mr. Davies

Does not my hon. Friend consider it an undesirable practice that an executive employed by the Airways Corporation should hold an interest in companies with which the Corporation has an agreement at the present time?

Mr. Lindgren

No, Sir. The association or interest is not in any air line or any air company which is associated in any degree with the Corporation of which the man is an executive.

Mr. Rankin

Is it not the case that there are executives who are directly associated with charter companies which are carrying on work for one or other of the corporations? Does the hon. Gentleman think that is advisable?

Mr. Lindgren

No, Sir, it is not so. The only case is that of Mr. Whitney Straight, who is chief executive to B.O.A.C. and who has a financial interest, but not a managerial interest, in Western Airways.

Mr. Davies

Would it not be better if he were disassociated from this company in the same way as in any other nationalised concerns members of the board are not allowed to hold interests which conflict with their work in the nationalised undertaking?

Mr. Lindgren

In the opinion of my noble Friend that conflict of interest does not exist and would not exist unless, in fact, there was a responsibility for management. My noble Friend feels it is exactly the same position as that of a Member of His Majesty's Government who may have a financial interest but is required to give up a managerial interest on taking office.

Air-Commodore Harvey

Would the Parliamentary Secretary say if Mr. Whitney Straight made his position clear when he accepted an appointment under the Corporation?

Mr. Lindgren

Yes, Sir: that is so.