B.O.A.C. Has Worked In The Dark ‘For Years’

Press, Volume CIII, Issue 30478, 27 June 1964, Page 13

B.O.A.C. Has Worked In The Dark ‘For Years’

(Spectal Correspondent N.Z.P.A.)

LONDON, June 24.

Described as one of the toughest reports submitted to Parliament on a nationalised industry, a report by an all-party select committee of M.P.s investigating the finances and direction of British Overseas Airways Corporation says the Ministry of Aviation “must accept some share of the blame” for the corporation’s £Bom deficit.

Mr Julian Amery, the Minister of Aviation, is criticised for refusing to disclose the findings of a special inquiry into the corporation’s affairs. A precis was submitted to the committee but only after its request had been “hampered” by Mr Amery’s attitude.

The report shows that 8.0.A.C worked in the dark for years. It did not know whether it was in business solely to make a profit, or whether it was also supposed to take account of the needs of the aircraft Industry and national prestige.

When, in 1961, the Ministry of Aviation did finally get

around to this problem they took another three years to find an answer. For 15 years 8.0.A.C. has been headed mostly by parttime directors. In 25 years, it has had nine chairmen, twelve deputy chairmen and seven chief executives. Vindicates Chairman

The committee's report vindicates Sir Matthew Slattery, former chairman of the corporation. who resigned under political pressure last December, and was succeeded by Sir Giles Guthrie in January. Sir Matthew Slattery emerges as the one man who saw the dangers of the £lsom order for 42 VClOs.

It is revealed that just before he became chairman in July, 1960, he asked the then

chairman —Sir Gerard d’Erianger—not to commit himself to buy these aircraft for 8.0.A.C.

“Sir Gerard d'Erlanger’s reply was that it was too

late: he had been under strong pressure and it bad been necessary for the minister’s plans for the formation of the British Aircraft Corporation," says the report. “Realistic Document”

The committee also criticises the ministry for not making the position clear to successive chairmen—as it has now to Sir Giles Guthrie—that 8.0.A.C. should fly for profit

“8.0-A.C. should not have accepted responsibility for any part of the manufacturing industry’s problems. These were for the aircraft industry and the Government to look after," it says. Sir Miles Thomas, chairman of the 8.0.A.C. from 1949 until he asked to be relieved of his appointment in 1956, said, “The report is the most realistic document that has been published in connexion with British aviation during the lait two decades.”