HC Deb 21 June 1982 vol 26 cc8-10
4. Mr. Maxton

asked the Minister for Trade when he expects the receiver to report on the financial collapse of Laker Airways.

12. Mr. Dobson

asked the Minister for Trade if the receiver has yet made his full report on the collapse of Laker Airways.

Mr. Sproat

The receiver's statutory duty is to file with the Registrar of Companies a copy of the statement of affairs prepared by the directors of the company. He may, if he sees fit, comment upon the statement. Once filed, it will be open to public inspection. The receiver is unable to estimate at present when the statement will be filed, but I have no doubt he will carry out his duty as quickly as he can.

Mr. Dobson

Will the receiver's report cover the activities, or rather the inactivity, of Ministers who were aware that the company had gone bust, yet allowed the public to be deceived by Laker into buying a large proportion of the 17,000 tickets for translantic flights? Will the receiver also investigate the Prime Minister's role in this shabby affair?

Mr. Sproat

I do not know what the receiver will say, but I should think it extremely unlikely that he will say anything remotely like what the hon. Gentleman said. Perhaps I should point out that when the Bank of England, other banks, the Civil Aviation Authority and Ministers were examining the position prior to 2 February, 90 per cent. of the debts owed by Laker were owed to those banks. The banks believed that a package could be put together. If those to whom 90 per cent. of the debts were owed thought it was worth going on, I agree with the Civil Aviation Authority that it should have gone on until it did.

Mr. Colvin

Have any of Laker's Airbuses yet been sold? Will he confirm that when they are sold Her Majesty's Government will be relieved of any guarantees that they gave for their purchase?

Mr. Sproat

I cannot give my hon. Friend an exact answer about the Airbuses, but I shall carry out a check and let him know the result.

Mr. Ginsburg

Has the receiver intimated to the Minister the number of repudiated Laker Airways tickets? Will the hon. Gentleman bear this in mind when he contemplates the privatisation of British Airways? Surely, copper-bottomed financial guarantees for ticket holders will be required.

Mr. Sproat

I shall bear in mind all the relevant facts when the happy day comes to privatise British Airways.

Mr. John Smith

Is the hon. Gentleman aware that recently he said that the banks' judgment was the important factor when it came to considering whether Laker Airways should be allowed to continue trading? Is it not deplorable that a Minister is prepared to abdicate his responsibilities in favour of the judgment of banks which lent money to Laker Airways? The Laker Airways affair left thousands of people and many companies in debt. It is gratuitously and ridiculously offensive of the Minister to try to compare British Airways with the collapse and fiasco of Laker Airways.

Mr. Sproat

When comparing Laker Airways with British Airways I said—this should be of interest to the whole House—that Laker's debts were about one-quarter of the debts of British Airways. When talking about the banks, I made the reasonable point that 90 per cent. of the debts were owed to those who wanted to ascertain whether a package could be put together, and that was a good reason for Ministers to examine whether such a package could be assembled. We did not abdicate our responsibilities. We and the Civil Aviation Authority kept in the closest touch. We agreed with everything that the authority did until the day when Sir Freddie went into receivership.

Mr. Bill Walker

Does my hon. Friend agree that, notwithstanding the receiver examining the matter in depth, all the available information shows that Laker Airways' problems arose not because of competition on the North Atlantic route, but because of borrowing and difficulty in supporting the debt due to the cost of doing so.

Mr. William Hamilton

High interest rates.

Mr. Sproat

I am grateful to my hon. Friend the Member for Perth and East Perthshire (Mr. Walker) for his question. Sir Freddie's difficulties were brought about: by borrowing too much at too high a rate of interest to buy aeroplanes that he did not really need.

Mr. Dobson

On a point of order, Mr. Speaker. In view of the unsatisfactory nature of the Minister's reply, I shall seek to raise the matter on the Adjournment.