Corporation Accounts and Salaries

Oral Answers to Questions — Civil Aviation – in the House of Commons am 12:00 am ar 2 Ebrill 1947.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Sir Arthur Harvey Sir Arthur Harvey , Macclesfield 12:00, 2 Ebrill 1947

asked the Parliamentary Secretary to the Ministry of Civil Aviation when it is proposed to lay before Parliament the accounts of the three air corporations.

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

My noble Friend is anxious that the accounts of the three Corporations should be laid before Parliament at the earliest practicable date. His wishes have been conveyed to the Corporations, and discussions are taking place as to how best to achieve this object.

Photo of Sir Arthur Harvey Sir Arthur Harvey , Macclesfield

In view of the delay in presenting these accounts and the apprehensions concerning them, will the Minister do everything possible to see that they are presented at the very earliest opportunity?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

Yes, Sir. That is my noble Friend's desire. But I think I ought to say, on behalf of B.O.A.C., that its ramifications are world-wide, that its accountancy and audits have to be undertaken in various parts of the world, and that the collation of these accounts is a difficult task. The last took 11 months, but my noble Friend will not be satisfied until that period is very materially reduced.

Photo of Mr Ernest Davies Mr Ernest Davies , Enfield

Will the hon. Gentleman explain to those concerned that these accounts should be as fully informative as those of the London Passenger Transport Board, and not as uninformative as those of the B.B.C.?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

They are required under the Act to conform to the best commercial standards. My noble Friend has already had discussions with the Corporations. I can assure the House that, as a consequence of those discussions, the proposed form of the accounts will be very informative indeed, as compared with normal commercial standards.

Photo of Major Samuel Haughton Major Samuel Haughton , Antrim

Is the hon. Gentleman aware that what seems to us a perfectly reasonable request, to have these accounts put before us, is sidetracked every time that we ask it? The accounts may be difficult, but they are no more difficult than those in commercial concerns, and in connection with these and other matters, when we have asked for accounts they have not been informative.

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

With great respect, I think that that is not according to the facts. If the hon. and gallant Member will look at the accounts which were placed before the House on 20th March in respect of 1945-46, I think he will agree that they are in a very good form and quite informative.

Photo of Mr Frank Beswick Mr Frank Beswick , Uxbridge

Does the cost of new aircraft appear?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

The effect of the cost will. As to the actual details of cost, I am not sure.

Photo of Colonel Sir Alan Gomme-Duncan Colonel Sir Alan Gomme-Duncan , Perth

In view of the fact that the hon. Gentleman has already informed the House that deficiency payments to date amount to over £15 million, will he not agree that something more detailed in the way of accounts should be presented to the House, in view of what must be world-wide losses, so far as I can see?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

A supplementary question couched in that form gives an entirely wrong impression. The deficiency referred to is over a period of years, from 1940 to 1945; and, in fact, has been shown in the accounts given each year. Each one of those accounts has been laid before the House, and it was open to the House to discuss them at that time.

Photo of Mr Ian Mikardo Mr Ian Mikardo , Reading

In view of the fact that next year the accounts will cover the transitional period in which there has been heavy expenditure, would the hon. Gentleman ask the Corporations to ensure, particularly, separation out in the expenditure accounts of now recurrent special costs from regularly recurrent costs?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

That will be the desire. I think that I ought to point to that certain costs, and the deficiency which has been referred to already, would have been greater had the Corporation borne all the costs that they ought to have borne. There were many costs carried on Air Ministry Votes and Departmental Votes that were clearly appropriate to the operation of air lines.

Photo of Mr Ernest Davies Mr Ernest Davies , Enfield

asked the Parliamentary Secretary to the Ministry of Civil Aviation if he will state the fees payable to each of the chairmen and members of the Boards of B.O.A.C., B.E.A.C. and B.S.A.A.C., who were serving thereon at 28th January, 1947.

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

As at 28th January, 1947, the annual salaries of the chairmen of the three Corporations were £7,500 (British Overseas Airways Corporation), £6,500 (British European Airways Corporation), and £6,000 (British South American Airways Corporation). Each of the three deputy chairmen was in receipt of an annual salary of £1,500 for part-time services. Other members, except those who were full-time salaried employees of the Corporations, received annual salaries varying between £1,000 and £1,500 according to their duties. Those member who were full-time employees of the Corporations received no additional remuneration in respect of their offices as members.

Photo of Mr Ernest Davies Mr Ernest Davies , Enfield

Do these gentlemen who serve on these boards receive any expenses in addition to their fees?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

Yes, Sir. In the B.O.A. C.,£2,000 per annum; in the B.E.A.C., £1,000; and in the B.S.A.A.C., £500.

Photo of Mr Ernest Davies Mr Ernest Davies , Enfield

Does that refer only to full-time or full-time and part-time men?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

No, Sir. These expense allowances are for the chairmen of the corporations.

Photo of Mr Frederick Erroll Mr Frederick Erroll , Altrincham and Sale

Are these expenses the maximum allowed, or do they get a bit more when they go abroad?

Photo of Mr Ian Mikardo Mr Ian Mikardo , Reading

Does the hon. Gentleman admit that the chairman of the B.O.A.C. is worth nine and a half Members of Parliament, or one and nine-tenths Cabinet Ministers?

Photo of Sir Allan Noble Sir Allan Noble , Chelsea

Are these expenses free of tax?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

That, I think, is a question that ought to be addressed to the Treasury. [HON. MEMBERS: "No."] Quite frankly, I do not know. I will ascertain the fact and let the hon. and gallant Gentleman know.

Photo of Colonel Sir Alan Gomme-Duncan Colonel Sir Alan Gomme-Duncan , Perth

May I ask what proportion of these highly salaried persons are representative of Scottish interests?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

It appears to me from my service in London as a good Cockney, that we are invaded from Scotland for all the good jobs in considerable numbers.

Photo of Colonel Sir Alan Gomme-Duncan Colonel Sir Alan Gomme-Duncan , Perth

May I have an answer to my question?

Photo of Mr George Lindgren Mr George Lindgren , Wellingborough

The answer is, that I do not know whether any of the gentlemen concerned are of Scottish descent.