§ Mr. Croninasked the Minister of Aviation what steps he is taking to help British Overseas Airways Corporation to compete more effectively, having regard 182W to the support received from its principal foreign competitors by their Governments.
§ Mr. AmeryIt is not the Government's policy to subsidise international air services, but I am always ready to consider proposals from the Corporation for ways in which the Government may legitimately further its efforts to improve its position. There is, of course, continuous co-operation betwen my Department and the Corporation in the field of international air traffic relations.
§ Mr. Croninasked the Minister of Aviation, in view of the Government expenditure involved, if he will make a statement on the circumstances under which British Overseas Airways Corporation proposes to write down the value of its fleet by £33 million; and what steps he intends to take to avoid future large obsolescence charges.
§ Mr. AmeryIt is for the Corporation in the exercise of its commercial judgment to decide what provision to make for obsolescence in its accounts. The Corporation's explanation of the circumstances of the depreciation for 1961–62 is given in the Report and Accounts for that year. I am satisfied that the Corporation is well aware of the need to keep this matter under frequent review so as to avoid as far as practicable abnormal provision in any one year.