British European Airways and British Overseas Airways Corporations

Part of the debate – in the House of Commons at 12:00 am on 21 November 1963.

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Photo of Mr Julian Amery Mr Julian Amery , Preston North 12:00, 21 November 1963

The hon. Gentleman has asked a number of questions and I will try to deal with them. It is quite true that Mr. Hardie, a very distinguished accountant, will be joining the board of B.O.A.C. This is a vacancy, which arises in January on the retirement of Mr. Staple, the present secretary of the company. This has nothing to do with the other changes that I have announced.

There has been no discussion whatever of hiving off the southern routes to anybody else, nor has there been any particular discussion of the southern routes with the Corporation.

Equally, there has been no discussion with the Corporation about a joint board. I took the opinions of both B.O.A.C. and B.E.A. on merger earlier on, and the White Paper contains a summary of the arguments for and against. I have already expressed the Government's views on this

The hon. Gentleman suggested that Sir Matthew Slattery had resigned on the question of writing off the deficit. It may help to clear the air on this, in view of Press statements this morning if I read to the House the letter of resignation which I received from Sit Matthew Slattery on 19th November. It reads: You have told me in our recent talks of your plans for reconstituting the B.O.A.C Board In particular, you expressed the view that it would be necessary, at any rate for the next couple of years, for the Chairman to undertake many, if not most, of the duties that are at present assumed by the Managing Director.I explained that I would not myself feel disposed to attempt this double task. You then told me that in these circumstances you would propose to appoint Sir Giles Guthrie to the Chair when my term of office expired on the 28th July, 1964.On reflection, I have come to the conclusion that it would be in the best interests of the Corporation if the changes you have in mind were introduced as soon as convenient rather than after a delay of some months. You will be telling Parliament about your plans in the course of this month, and to avoid leaving uncertainty in the minds of Corporation's staff it would be best, in my view, if the new appointments were made as soon as possible after your statement.If you agree, therefore, I would propose to vacate the chairmanship of the Corporation on 31st December, 1963 and so make way for Guthrie to succeed me as Chairman. This letter makes it plain that there was no issue of policy at stake. [HON. MEMBERS: "Oh."] Indeed, there has been no discussion of the question of writing off the deficits. The issue has been simply one of organisation and the best time for reorganisation to take place.

On the question of the deficit itself, our view is that it would be illogical and wrong to ask the House to write off £80 million of public money until we can recommend a plan to the House, which we think will put the Corporation on its feet financially. When we are in a position to do that, we can then tackle the question of the deficit and consider whether it should be written off, in whole or in part.

On the hon. Gentleman's first point concerning publication of the Corbett Report, I have already explained to the House that it was commissioned on the understanding that it would be confidential, and the evidence was given to Mr. Corbett on this understanding. I am not, therefore, prepared to publish the Report.