§ Mr. Michael McNair-Wilsonasked the Secretary of State for Trade and Industry whether he has yet advised the Civil Aviation Authority of the amount of its initial debt under Section 7(3) of the Civil Aviation Act 1971; and, if so, what is the amount and on what basis it was calculated.
§ Mr. Michael HeseltineThe Civil Aviation Authority has been notified that the aggregate amount of its initial debt as from 1st April 1972 was £27,639,718. This amount was calculated after consultation with the authority on principles designed to produce a valuation representing as fairly as possible the worth to the authority of the assets less the liabilities transferred to the authority on that date. Accordingly, the net book values of the fixed assets were, in general, increased to allow for changes in the228W relevant price levels since they were purchased, after reductions to allow for accelerated depreciation policies now being adopted by the authority and for the exceptional obsolescence which had been suffered by certain items of technical equipment.