HC Deb 20 May 1963 vol 678 cc9-10
13. Mr. Cronin

asked the Minister of Aviation, in view of the fact that the then Minister of Aviation invited the British Overseas Airways Corporation and their accountants to represent the capital assets of British Overseas Airways Corporation in their 1958–59 accounts at a much higher figure than they originally intended, what is his policy with regard to advising the British Overseas Airways Corporation what figures they should put in their accounts.

Mr. Marten

While not accepting the view of past events as described in the first part of the Question, my hon. Friend must be free, if he thinks it in the public interest, to ask questions or make suggestions on these matters. But B.O.A.C. are also free to accept or reject them as they see fit.

Mr. Cronin

I am sure that the hon. Gentleman will at least accept what was said by a noble Lord on behalf of the Government in another place. Bearing that in mind, is it not very unsatisfactory that the Government should be in a position to offer suggestions to the Corporation of which the Board is literally in the Government's employ and also bound to take general directions?

Mr. Marten

It is for B.O.A.C. and its auditors to decide what figures they put in their accounts.

Mr. Burden

Would not my hon. Friend agree that it would not be in the public interest to give B.O.A.C. or any other nationalised corporation any instructions which might have the effect of implying cooking of the books and that proper accounts must be made to the public, just as they are by commercial companies?

Mr. Marten

The Minister is fully entitled under Section 5 of the Air Corporations Act, 1949, to rule as to the form of the accounts, but he may not rule as to the substance.

Mr. Cronin

But is it not highly improper for the Minister to advise or invite—whatever word is used—the chairman of the Board to represent the capital assets of British Overseas Airways Corporation at a much higher value than they really were? Does not that mislead the public?

Mr. Marten

There was no intention to mislead the public. What happened in 1959 was that B.O.A.C. proposed to write down the value of certain capital assets in the balance sheet without bringing the adjustment through either the operating or the profit and loss account. The then Minister, my right hon. Friend the Member for Woking (Mr. Watkinson), considered this proposal indefensible, but invited B.O.A.C. to submit alternative proposals.

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