Britain: An official handbook > 1959

BRITAIN! AN OFFICIAL HANDBOOK
South American Airways (BSAA) to operate to South America and the Caribbean.
In 1949, BSAA was merged with BOAC by the Air Corporations Act of that year.
The existing powers and constitutions of BOAC and BEA are laid down by the
Air Corporations Acts 1949 to 1956. Each Corporation consists of a chairman,
deputy-chairman and from 5 to 11 members, all of whom are appointed by the
Minister. In the case of BOAC the Minister may, if he wishes, appoint two deputy-
chairmen.
Statements of accounts in a form approved by the Minister and the Treasury
have to be prepared by the Corporations for each financial year. The auditors of the
accounts are appointed annually by the Minister. Each Corporation must
also make an annual report to the Minister, and the Minister must lay a copy of
this report and of the accounts before both Houses of Parliament. In addition, each
Corporation must submit before the beginning of every planning period (i.e. each
three-year period, beginning at 1st April, 1947) a programme of the services it
proposes to provide and of any other activities it proposes to engage in, as well as
an estimate of its receipts and expenditure on revenue and capital account during
the period.
Finance. Each Corporation may, with Treasury consent, borrow either by raising
temporary loans or by issuing stock. The Treasury may guarantee redemption or
repayment of, and payment of interest on, any stock issued and temporary loans
raised. In addition, the Finance Act, 1956, permitted the Corporations, until 31st
March, 1958, to raise money by means of interest-bearing redeemable loans from
the Exchequer and these powers were renewed until 31st August, 1959, under the
Finance Act, 1958. Under the Air Corporations Act, 1956, the borrowing powers
of BOAC and BEA are limited to £160 million and £60 million respectively. This
Act also provides that BOAC may, with the consent of the Treasury, borrow from
the International Bank or the Export-Import Bank of Washington in order to buy
aircraft manufactured in the United States of America and spare parts and equip¬
ment for such aircraft. Provision was made in earlier Acts for Exchequer grants
up to a limit of £8 million a year (for both Corporations together) until April 1956,
so as to enable the Corporations to build up their organisation and services over a
period of years. (For 1946-47 and 1947-48 the maximum was £10 million each
year.) BOAC has operated without Exchequer grant since 1952-53 and BEA since
i955-56. The Corporations are not exempt from liability for any taxes or rates.
Ministerial Control. The Corporations conduct their own affairs as commercial
businesses. The Minister can give general directions on matters affecting the
national interest but in practice this power is rarely, if ever, used, since it has been
found much more suitable to proceed by means of close consultation and discussion
with the Corporations. In fact, the Minister has maintained closer control over
them than has been the case for the other nationalised industries. During the
Exchequer grant period (1946-56) the Minister had to decide in consultation with
the Treasury the grants which, within the ceiling of £8 million, should be given to
each Corporation in any particular year. This necessitated examination of the
Corporations’ programmes of air services and financial estimates. The Minister also
keeps in touch with the Corporations regarding plans for new aircraft and
new routes since he has to negotiate the necessary rights with foreign governments.
He also provides most of the aerodromes from which the Corporations operate
and the navigational aids and communications necessary to the conduct of their
flights. Contact between the Corporations and the Ministry consists mainly of
daily informal exchanges of information between their staffs.
Labour Relations. Each Corporation must, unless it is satisfied that adequate