§ 3. Mr. John Smithasked the Minister for Trade if the Government have been consulted by British Airways on any proposals to sell off subsidiary companies.
§ The Under-Secretary of State for Trade (Mr. Iain Sproat)The disposal of International Aeradio Limited is under consideration.
§ Mr. SmithHas there not been much speculation recently on the disposal of International Aeradio Limited? If that happens, a very important earner for British Airways will be disposed of. Is it the policy of the Government that if anything in the public sector is successful it has to be sold off, thereby diminishing the future earning capacity of public corporations? Will the Minister also end the disgraceful uncertainty about the future of British Airways Helicopters, which is doing no good whatever to that company?
§ Mr. SproatI have had no proposals so far from British Airways about disposing of British Airways Helicopters. If and when such proposals come before me, I shall 4 consider them on their merits. As to the general financial aspect, the disposal of subsidiaries of British Airways is a matter for the board of British Airways.
§ Mr. McCrindleI recognise that the disposal of assets such as International Aeradio Limited will contribute to a reduction of British Airways' capital debt, but will my hon. Friend confirm that it will also reduce any trend towards trading profitability? Does he agree that, in moving towards the privatisation of British Airways, a record of growing profitability is extremely important? Therefore, is he sure that British Airways have got the matter right.
§ Mr. SproatYes, I am certain that British Airways have got the matter right. If they decide that they want to sell off International Aeradio Limited, that is a matter for them. I am glad to tell the House that British Airways are right on the road towards privatisation.