HC Deb 05 December 1951 vol 494 cc2359-60
7. Mr. Beswick

asked the Minister of Civil Aviation if he can give the latest available figures sowing the operating profit or loss shown by British Overseas Airways Corporation during the current year.

Mr. Maclay

I am informed by the British Overseas Airways Corporation that in the six months ended 30th September, 1951, the Corporation made an operating profit of £974,000, with a net profit of £133,000 after providing for interest on capital and other non-operating expenditure.

It will, of course, be appreciated that this period covers the summer months which are the most profitable and it cannot be assumed that the second half of the year will be equally good.

Mr. Beswick

Is not it also fair to compare these figures with the corresponding period last year, which showed a loss of something over £2 million, and in view of the exceptional progress made, does not this confirm the fact that public capital invested in the industry could reap exceptionally good rewards and that this is not the time to permit private capital to come into it?

Mr. Maclay

I would be the last to detract from the performance of B.O.A.C. during that period, but I should add that airlines all over the world have been showing quite exceptional results during this period.

Air Commodore A. V. Harvey

Will my right hon. Friend ask B.O.A.C., in the next balance sheet, to take into account the hidden subsidies, one for example, of £3½million worth of flying boat equipment disposed of after a few months use by the Ministry of Civil Aviation?

Mr. Maclay

I think that supplementary question would require careful examination.

Mr. Beswick

Given careful examination, would not it show that this hidden subsidy was in fact given to British aircraft manufacturing industry, mainly privately owned, and not publicly owned?

Mr. Maclay

With great respect, I would suggest that that supplementary question is rather hypothetical.