§ VISCOUNT SWINTONMy Lords, I beg to ask the following question, of which I have given private notice: To ask His Majesty's Government whether they have any statement to make about the Board of the British Overseas Airways Corporation.
§ THE MINISTER OF CIVIL AVIATION (LORD WINSTER)My Lords, as a war- 1032 time measure the number of the members of the Board of the British Overseas Airways Corporation was restricted to a maximum of nine. With the end of the war the necessity for this restriction has disappeared and the Order in Council imposing it has been revoked. Up to the date of the revocation of this Order in Council the Board consisted of the following seven members: Lord Knollys (Chairman), Sir Harold Howitt (Deputy Chairman), General Critchley (Director-General), Mr. d'Erlanger, Sir Simon Marks, Mr. Marchbank and Mrs. Fahie. During the last two years the yearly, mileage flown by B.O.A.C. has increased from 12,000,000 to 30,000,000. During the last fourteen months no passenger has met with a fatal accident. This latter fact, and the regularity with which the services have been maintained, reflects great credit on the way in which the Board has discharged its duties, and I take this opportunity of thanking Mrs. Fahie and Sir Simon Marks for the valuable assistance they have rendered during their membership of the Board and to place on record my appreciation of their services.
The new Board will consist of the following members: Lord Knollys, Sir Harold Howitt, Mr. d'Erlanger, Mr. Marchbank, Sir Harold Hartley, Mr. Garro-Jones, Lord Burghley, Major Thornton, Major McCrindle, Mr. Clement Wakefield Jones. Lord Knollys and Sir Harold Howitt have accepted my invitations to continue as whole-time Chairman and Deputy Chairman respectively. General Critchley informed me on the 10th January, in a letter which has been made public, of his wish to be released from his position on the Board. I acceded to his request with effect from 30–6–46, but in view of the public criticism of Government policy which he has since expressed, General Critchley agrees that his reappointment to the Board has become inadvisable. The Board of the B.O.A.C. has accepted his resignation as Director-General as from 31–3–46. I take this opportunity of thanking General Critchley for his services to civil aviation as Director-General of the B.O.A.C. and for the great energy and application which he has continuously displayed during nearly three years during which he has held that office.
Pending the passage of an Air Transport Bill which I shall introduce and the formation thereafter of the European 1033 Corporation foreshadowed in the White Paper, the Board of B.O.A.C. have arranged that Sir Harold Hartley and Mr. d'Erlanter shall devote themselves to matters concerning the European Services present and projected, and with the civilianization of European Services at present operated by Transport Command. On the formation of the European Corporation, Sir Harold Hartley and Mr. Gerard d'Erlanger will join the Board as Chairman and Chief Executive respectively. For all Boards formed under the Civil Aviation policy I propose to institute a rule of retirement by rotation in accordance with usual commercial practice.
§ VISCOUNT SWINTONMy Lords, arising out of that reply, may I put the following questions to the Minister? In the first place, General Critchley has retired. Is it imended that there should be in future no Chief Executive of the Corporation? E it is intended that there should be one, who will discharge those functions? Next, will B.O.A.C. run all services pending the creation of these new Corporations? My third question is this: When a European Corporation is formed, Sic Harold Hartley and Mr. d'Erlanger, who are to be Chairman and Chief Executive of that Corporation, remain on the Board of B.O.A.C., or will they be separated from it and conduct the European Corporation as a separate undertaking?
Also time noble Lord, the Minister, has referred to the European Corporation. He has said nothing about the South American Corporation. Could he tell us at -the same time who are going to be Chairman and Chief Executive of that Corporation? I think he will allow me to put my next question, as in his answer he has dealt a good deal in detail with the performances of the B.O.A.C. over the past twelve months. Could he inform the House whether it is correct that B.O.A.C. has, in fact, during the last year, made a profit, as has been stated, of £1,500,000, and if so is that profit calculated on a strictly commercial basis? I apologize to the noble Lord for putting those questions to him but I think he will agree that every one of them arises clearly and simply and straightly out of the answer he has just asked me to give him the opportunity to make.
§ LORD BALFOUR OF INCHRYEMy Lords, before the noble Lord replies may I ask two further questions? Could he say whether the taking over of the European routes from the Air Transport Command must await the formation of the European Corporation, or will the process go on at once. Furthermore, would he be able to give further details such as those for which the noble Viscount, Lord Swinton, asked, if not to-day at any rate on the occasion of the forthcoming debate on civil aviation in this House, which, I hope, will be in the not too far distant future.
§ LORD WINSTERMy Lords, as regards the noble Viscount's first question, Lord Knollys, the Chairman of the B.O.A.C., will be submitting to me his proposals for organization of the Corporation following upon these changes. Those will of course be announced at the earliest possible date. Pending the formation of the two new Corporations interim arrangements have to be made and those will be announced to-morrow in detail. As to the third question concerning Sir Harold Hartley and Mr. d'Erlanger, on the formation of the new European Corporation they will leave the board of the B.O.A.C. and will join the board of the new European Corporation as Chairman and Chief Executive officer respectively. As to the fourth question as to how the services of the European Corporation and the South American 'Corporation will be run, details of that will be announced to-morrow. As to the question concerning what profits the B.O.A.C. has made, the accounts of the Corporation will shortly be presented, when those matters will be dealt with. I shall be able to give a full reply to the noble Viscount on that occasion. As to the questions asked by the noble Lord, Lord Balfour of Inchrye—
§ VISCOUNT SWINTONWhat about the Latin-American Corporation?
§ LORD WINSTERThe arrangements for running those services will be announced to-morrow. Does that meet your point?
§ VISCOUNT SWINTONThe noble Lord announced the Chairman and Chief Executive of the European Corporation. I was asking whether he could give us the same information about the Latin-American Corporation.
§ LORD WINSTERThat will be announced to-morrow. As regards taking over the European routes from Transport Command, that will not await the formation of the new Corporation. The process is in hand now and will proceed continuously until the new Corporation is formed. In the forthcoming debate I shall certainly be very happy indeed to reply in the fullest detail to the points which have been raised.
§ VISCOUNT SWINTONWill the noble Lord clarify one point? He said the accounts of B.O.A.C. would be published shortly and would show what the position was. A statement has been publicly made that a loss of two-and-a-half millions has been converted into a profit of one-and-a-half millions. Would the noble Lord tell us whether that statement was made on his authority.
§ LORD WINSTERNo, that statement was not made on my authority.