HL Deb 25 November 1986 vol 482 cc532-3WA
Lord Underhill

asked Her Majesty's Government:

Whether they can explain why local authorities served with a direction to establish a public airport company under the provisions of the Airports Act 1986 have been instructed to value airport assets on the basis of depreciated replacement costs in the case of specialised facilities or a rental approach where possible, whereas the British Airports Authority has been allowed to value the assets of its subisdiary airports on the basis of historic cost.

Lord Brabazon of Tara

The historic value of assets was used as the basis for allocating BAA's existing long-term debt among the seven subsidiary airport companies. The BAA airport companies will, however, continue to value their assets in their published accounts on a current cost basis.