§ Mr. Woodasked the Secretary of State for Transport what arrangements govern the relationship between the Government and the British Airports Authority plc between vesting and privatisation.
§ Mr. Michael SpicerThe British Airports Authority's business was vested in BAA plc on 1 August 1986. Pending the flotation of BAA plc in summer 1987, all shares will be retained by the Government and the company will remain in the public sector. During this period the powers of the Secretary of State over BAA plc will be those of a sole shareholder over his company.
The members of the authority have become directors of BAA plc, and Sir Norman Payne remains as chairman, his present appointment having been extended to 31 July 1989.
A new memorandum and articles of association have been adopted for the company; these will apply while the company remains in the ownership of the Government.
440WThe Secretary of State has also concluded a memorandum of understanding with the directors dealing with aspects of their relationship not covered in the articles of association.
The principle underlying these arrangements is to preserve over BAA plc, while it remains in the public sector, controls which are similar to those that were hitherto exercised over the British Airports Authority as a statutory corporation.
I have placed copies of the memorandum and articles of association and of the memorandum of understanding in the Library.