§ 7. Mr. Dobsonasked the Secretary of State for Transport if he is satisfied with the accountancy policy of British Airways.
§ Mr. David MitchellBritish Airways' recently published accounts for 1983–84 accord with standard accounting practice, and were audited by a leading firm of accountants.
§ Mr. DobsonDoes the Parliamentary Under-Secretary agree that British Airways' accounting practices inflated the deficit in 1982–83 and the profits in 1983–84, and may 686 have a little to do with the Government's intention to dispose of the shares? Does he further agree that if the accountants were a team of ice skaters they would probably get more marks for artistic interpretation than for technical merit?
§ Mr. MitchellThe accounts of British Airways have been audited by a leading firm of independent auditors in the City. I do not believe that the hon. Gentleman's criticsm of the audit would be borne out by anyone outside the House who is involved in accountancy. The aircraft were previously valued without having a residual value after depreciation. They have now been given a residual value, which is in line with the general practice of other companies. The only other major change in the accounts is in the valuation of buildings and properties, which have been revalued from time to time, as is normal accounting practice.
§ Mr. HigginsAre any Government financial guarantees to British Airways still outstanding? If so, are they still needed?
§ Mr. MitchellYes, Sir.
§ Mr. Carter-JonesWill the Minister now make a clear statement on routes and their future? When he makes that statement—I hope soon—will he clearly show that the routes belong to the British people?
§ Mr. MitchellMy right hon. Friend has asked the Civil Aviation Authority to report on the route structure of British Airways. When that report is received and my right hon. Friend has considered it, he will announce his decision.