HC Deb 19 November 1962 vol 667 cc819-21
40. Mr. Cronin

asked the Minister of Aviation what action was taken by his Department in accordance with subsections (1), (2) and (3) of Section 22 of the Air Corporation Act. 1949, to ensure that the accounts of the British Overseas Airways Corporation in the years prior to 1961–62 contained more accurate estimates of the capital value of its aircraft fleet, having regard to the circumstance that the British Overseas Airways Corporation accounts for 1961–62 contained additional aircraft obsolescence provisions of£31,717,000, of which£26,245,000 applied to previous years.

Mr. Amery

May I first congratulate the hot Member on his escape from last week's tragic accident?

I have no power to determine the actual amounts to be included in the Corporation's accounts as distinct from the manner in which they are presented.

Mr. Cronin

May I thank the Minister for his kindly wishes? As the matter has been referred to, I am sure that hon. Members on both sides of the House would like to express deep sympathy with the wife of the noble Lord who was involved in this tragic accident while performing his Parliamentary duty, and also the wife of the gallant squadron leader, Squadron Leader Stott, who died in the course of his hazardous work. [HON. MEMBERS: "Hear, hear."]

Returning to the Question, is it not the case that the assets of B.O.A.C. were grossly overloaded in the Reports of the last few years, and surely in the terms of the 1949 Air Corporations Act the Minister had powers at least to make some representations to see that the public were not misinformed as to the financial position of B.O.A.C., as indeed they were?

Mr. Amery

As I said, we have no powers to direct the Corporation in this matter. Advice has been given from time to time when our advice has been sought. Sometimes it has been followed, sometimes not.

Mr. Cronin

It is quite clearly indicated in the Act that the accounts must follow the proper commercial practice, and it is quite clear that they did not follow proper commercial practice in this case. Surely it is the duty of the Minister to intervene when there has been at least a technical breach of the law?

Mr. Amery

No, Sir, it is not our duty to intervene on the accounts, on the figures. We are responsible for the presentation of the accounts, but not for the totals included in those accounts. When our advice has been sought we have given advice. Sometimes that advice has been taken and sometimes not, but our advice is on the form and not on the quantities.

Mr. Burden

If in fact there was a gross over-valuation of assets, does not this illustrate the wisdom of my right hon. Friend in asking a very highly qualified professional man to look into the whole affairs of B.O.A.C. in this connection?