British Airways (Hansard, 30 July 1984)

§ 3. Mr. Tony Lloyd
asked the Secretary of State for Transport when he next plans to meet the chairman of British Airways.

§ Mr. Ridley
Quite soon, I expect.

§ Mr. Lloyd
Is the Secretary of State aware that no reputable opinion in Manchester is in favour of the CAA report? When he next meets Lord King, will he tell him that he, the Secretary of State, rejects the non-competitive nonsense contained in the report, which would see the removal of the national carrier from Manchester airport and relegate the airport to third division status? Does he accept that this would have a detrimental effect on the entire northern region?

§ Mr. Ridley
I do not intend to tell Lord King that until the Government have made up their mind that that is their view, or that the reverse is the case. I cannot prejudge the decision to which I shall be coming soon.

§ Mr. Colvin
My right hon. Friend is probably aware that when he meets Lord King, if he does, he will probably be reminded that back in 1979, when the then Secretary of State gave his pledge to denationalise British Airways, he also gave two more pledges: first, not to reallocate routes, and, secondly, to give employees the opportunity to buy shares in the company. If he goes ahead with reallocation, will he ask Lord King just how ready the employees will still be to take shares in the company when 8 per cent. of its business is to be given away to its main competitors?

§ Mr. Ridley
I cannot comment on the first part of my hon. Friend's supplementary question, but he has raised matters that we shall be taking into account. I confirm that it is the Government's intention to allow employees of British Airways to purchase or to be given shares, whichever it may be, so that they might enjoy the continued prosperity of the airline upon privatisation—and privatisation will certainly continue.

§ Mr. Cowans
When the Secretary of State next meets the chairman of British Airways, will he draw to his attention one of his answers in Hansard to the effect that it would be wrong for the House not to have a report from the CAA? Will he assure the chairman of British Airways that it would be equally wrong if the House did not have an opportunity to discuss the report before any decisions are taken? Perhaps the right hon. Gentleman wishes to retract his earlier answer.

§ Mr. Ridley
The House has had an opportunity to discuss the report. It did so for three hours in the early hours of last Thursday. I am sorry that the hon. Gentleman was not in the Chamber at the time.

§ Mr. Prescott
The Secretary of State did not speak in the debate.

§ Mr. Ridley
I was on the Government Front Bench and listened to every word that was said. The House should have a chance to discuss the report, and it has had that chance. I listened to the debate, and surely that is what I should have done.

§ Mr. Montgomery
When my right hon. Friend next meets the chairman of British Airways, will he check with him the effect that the CAA report, if implemented, will have on Manchester airport and if British Airways loses all its European flights to substitution, not competition? Will it not have a detrimental effect on an important airport?

§ Mr. Ridley
I hear what my hon. Friend says. I cannot comment until the Government have made up their mind.

§ Mr. Prescott
Neither the House nor Lord King will be convinced by the Secretary of State's dithering performance over the future of British aviation. Will the right hon. Gentleman confirm the charge made by Lord King that he was told that the airline would not be broken up if he carried it through its changes? Does he agree that Lord King feels that he has been betrayed by the Government and that he has a right to call for the Secretary of State's resignation?

§ Mr. Ridley
The hon. Gentleman must calm down a little and wait for the Government to announce their decision on that matter. I do not believe that the sort of wild talk in which he is engaging is relevant to this exercise.