§ 2.57 p.m.
§ Viscount SWINTONMy Lords, I beg to ask the Government the following question of which I have given private Notice—namely, whether the Government have any statement to make on the dismissal of Air Vice-Marshal Bennett, Chief Executive of the British South American Airways Corporation and a member of the Board of that Corporation.
§ The MINISTER of CIVIL AVIATION (Lord Nathan)My Lords, as the noble Viscount is aware, the Boards of the Corporations are responsible for making and terminating the appointments to the post of Chief Executive. This is therefore not a matter in which, strictly, I have a ministerial responsibility to Parliament, but I take the view, in the circumstances of this case, that it is right that I should make a full statement to your Lordships. The Chairman of British South American Airways, who returned to this country from abroad only on Saturday last, accompanied by the Deputy Chairman, 991 visited me on Monday afternoon and informed me that the Board had met that day to consider the serious situation which had been created for them as the result of statements made by the Chief Executive in an interview reported in a daily newspaper on February 5. The Chairman informed me that the Board had unanimously concluded that these statements were in contradiction to the considered views of the Board, of which the Chief Executive was aware. Moreover, this was. not an isolated instance of its kind and was the culmination of a series of differences between the Board and Chief Executive, They had accordingly lost confidence in him, and had decided that they had no option but to dispense with his services. He had refused the Board's suggestion that he should tender his resignation, and the Board were therefore obliged to dismiss him.
Late yesterday I received formal confirmation from the Chairman of the Board's decision, and was informed that notification of dismissal had reached Air Vice-Marshal Bennett. I am also informed that the Board are making a gratuitous payment of £4,500 to Air Vice-Marshal Bennett as compensation for loss of office;. The Chairman had considered it necessary to give me the earliest possible notification of the Board's decision to dispense with Air Vice-Marshal Bennett's services, because the Chief Executive of the Corporation is also a member of the Board. Membership of the Board is an appointment which I am responsible for making and terminating. I have reached the conclusion that it would be incompatible with the dismissal of Air Vice-Marshal Bennett as Chief Executive that he should remain a member of the Board. I therefore; await his resignation, in the absence of which I should feel it incumbent to take appropriate action.