§ Mr. Greenwayasked the Secretary of State for Transport what progress has been made on the implementation of part I of the Airports Act 1986.
§ Mr. MooreI have now approved the British Airport Authority's proposals for reorganisation, submitted under section 1 of the Airports Act 1986, together with a scheme for the transfer of property, rights and liabilities to the subsidiary companies.
In line with Government commitments, a separate subsidiary company will be established to operate each of the BAA's seven airports. There will also be an intermediate holding company in Scotland. Group services will he supplied by a division of the main BAA holding company, which will charge for its services on a commercial basis. The restructuring will take effect on 31 July 1986.
Copies of the proposals and scheme have been placed in the Libraries of both Houses.
I have also today published orders under section 2 of the Airports Act 1986 appointing 1 August 1986 as the day on which the British Airports Authority will be dissolved and its business vested in a successor company. The name of the company which I have nominated by order for this purpose is BAA plc.
Immediately before the appointed day—1 August—the BAA's loans from the National Loans Fund, totalling £43,503,340, will be written off by virtue of section 3 of the Airports Act 1986. I shall require BAA plc to issue loan-notes of equivalent value to me on the appointed day. I shall direct BAA plc to issue further securities to me, under the powers in section 4 of the Act, nearer to the time of flotation.