§ Major Bramall
asked the Chancellor of the Exchequer whether he will make a statement with regard to the capital requirements of the B.O.A.C.
§ Mr. Dalton
Yes, Sir. My right hon. Friend the Minister of Civil Aviation and I have approved a proposal by the Corporation for a further issue of stock to repay temporary bank advances, to acquire additional aircraft and other assets, and to provide further working capital. Accordingly, on 24th January, the Corporation issued to the National Debt Commissioners, under Treasury guarantee, £10 million of 2½ per cent. Airways Stock, 1977–1982, at a price of 101½. The effect of this issue is to increase the outstanding capital of the Corporation to £20 million, the previous issues of Airways Stock having been made on the following terms:
- March, 1940, £4¼ million of 3 per cent. Airways Stock 1960–1970, at a price of 95.
- June, 1946, £5¾ million of 2½ per cent. Airways Stock 1971–1976, at a price of 99.
All the issues of the Corporation have been guaranteed by the Treasury and are held by the National Debt Commissioners. The terms of these successive issues illustrate the steady improvement in the national credit.