§ Mr. Hayesasked the Secretary of State for Transport what powers he intends to take to prevent the holding company subsidising loss-making airports when he introduces legislation bringing the British Airports Authority into private ownership; and if he will make a statement.
§ Mr. Michael SpicerAs my right hon. Friend made clear in his statement, and in answer to questions, on 5 June, each of the British Airports Authority's airports under the legislation I propose will be established as a separate, subsidiary company. I will also take steps to ensure that any borrowings from the parent holding company to the subsidiaries are transparent, and that a commercial rate of interest is paid on them. I am considering which of the several ways of achieving these objectives would best ensure that they will continue to be met after privatisation.