HL Deb 25 November 1986 vol 482 c532WA
Lord Underhill

asked Her Majesty's Government:

Whether they are content that the rule for the provision of finance by the British Airports Authority holding company to the subsidiary companies, as set out in the BAA's restructuring proposals, fulfils assurances given during the passage of the Airports Bill through Parliament that there will be no cross-subsidy of Stansted by the BAA group.

Lord Brabazon of Tara

No. The Government have never seen the restructuring proposals as the only safeguard against the provision of unfair financial support to Stansted Airport. In addition, we propose to require Stansted Airport, by virtue of Section 40(2) of the Airports Act 1986, if it should receive any subsidy, to disclose it in it published accounts. And, most importantly, Section 41 of the Act provides the Civil Aviation Authority with powers to prevent any cross-subisdy leading to pricing policies which harm, or are intended to harm, another airport's business.