§ 92. Mr. J. Morrisonasked the Secretary of State for Air why his Department opposed the amalgamation of the Army Cinema Corporation and the Royal Air Force Cinema Corporation.
§ Mr. A. HendersonThe R.A.F. Cinema Corporation belongs to the officers and airmen of the Royal Air Force and operates on non-public funds. Its capital came as a loan from the R.A.F. Central Fund, which is non-public money, and when the Corporation was formed it took over all the physical assets and goodwill from station institutes without compensation. My Department has, therefore, no power to compel the Royal Air Force Cinema Corporation to amalgamate with any other body.
200WPotential savings from amalgamation are limited almost entirely to administrative overheads. Amalgamation would not, for example, enable films or other things to be bought more cheaply. Nor, in the direction of closing down competing cinemas, would it lead to any economy which could not as readily be obtained without amalgamation. Even in the field of administrative savings there would be complications, as the amalgamated concern would be in the position of endeavouring to meet requirements for two quite distinct sets of consumers.
Esprit de corps in each Service is fostered by that Service managing and owning its cinema corporation and it is easier for a smaller concern, able through close contact with its own Service to see the immediate results of its work, to maintain enthusiasm and drive among its staff and workers. On the financial side, too, there is a close and flexible connection between the funds of the R.A.F. Cinema Corporation and the R.A.F. Central Fund, command welfare funds and station institute funds. Each fund is used in harmony with the others in the general interest of the Service, an arrangement which would be impossible with an amalgamated corporation.