Mr. R. Adamsasked the Chancellor of the Exchequer whether he has any statement to make with regard to the capital requirements of B.O.A.C.
§ Mr. DaltonYes, Sir. In March, 1940, the Corporation issued £41 million of 3 per cent. Airways Stock 1960–70 to the National Debt Commissioners under Treasury guarantee. The price of issue was 95. Authority has now been given for the Corporation to make a new issue to the National Debt Commissioners, under Treasury guarantee, of £5¾ million of 2½ per cent. Airways Stock 1971–76, at a price of 99. The purpose of this issue is to repay temporary advances, and to pay for aircraft and other new capital assets. Since these requirements need to be met in the immediate future, it has been decided not to wait for the passage into law of the Civil Aviation Bill, but to authorise the Corporation to act under the powers contained in the British Overseas Airways Act, 1939. Their capital is now increased up to the limit of £1o million provided in that Act.