Civil Aviation Act 1971

• (c) if it comes to the notice of the Authority that a body which is the holder of an air transport licence is proposing to merge or has merged with another body, to give notice in writing of the proposal or merger to the Secretary of State;

• (d) if it appears to the Authority that any matter which is being or has been dealt with by the Authority is likely—

• (i) to affect the relations of the United Kingdom with any other country or territory or any international organisation, or

• (ii) to be of special interest to the Secretary of State by reason of the fact that the matter involves or may involve noise, vibration, pollution or other disturbance attributable to aircraft used for the purpose of civil aviation,

to give notice in writing of the matter to the Secretary of State.

• (2) Nothing in the preceding subsection shall be construed as prejudicing the generality of subsection (1) of the preceding section, and nothing in paragraph (c) or (d) of the preceding subsection shall be construed as prejudicing the generality of paragraph (a) of the preceding subsection.

• (3) The Authority shall be entitled to recover from the Secretary of State a sum equal to any expense reasonably incurred by it in furnishing information in pursuance of subsection (1) of this section, and any expenditure incurred by the Secretary of State in pursuance of this subsection shall be defrayed out of money provided by Parliament.

Provision by others of information for the Authority and Secretary of State

35

• (1) The Authority may, by a notice in writing served in the prescribed manner on a person of any of the following descriptions, that is to say—

• (a) a holder of a licence issued by the Authority under this Act or a licence or certificate issued by the Authority under an Air Navigation Order;

• (b) a recipient of an approval given by the Authority under an Air Navigation Order;

• (c) a person who in the United Kingdom has, at any time during the period of two years ending with the date of service of the notice, held himself out as one who may as a principal or otherwise enter into a contract to make available accommodation for the carriage of persons or cargo on flights in any part of the world in aircraft of which he is not the operator;

• (d) a person carrying on business in the United Kingdom as a manufacturer of aircraft or engines or other equipment for aircraft or as an insurer of aircraft,

require him to furnish to the Authority, in such form and at such times as may be specified in the notice, information of such descriptions as may be so specified, being—

• (i) in the case of such a holder or recipient as aforesaid (other than the holder of an aerodrome licence), descriptions of information which relates to his past, present or future activities as the holder or recipient of the licence, certificate or approval in question or his past activities as the holder or recipient of any similar licence, certificate or approval or is of a kind which the Authority considers that it requires for the purpose of reviewing the licence, certificate or approval in question,

• (ii) in the case of such a person as is mentioned in paragraph (c) of this subsection, descriptions of information which relates to his past, present or future activities in the United Kingdom connected with the making available of accommodation so mentioned,

• (iii) in the case of such a person as is mentioned in paragraph (d) of this subsection or the holder of an aerodrome licence, descriptions of information which relates to his past, present or future activities (including, in the case of the holder of an aerodrome licence, information as to the numbers of aircraft and passengers and the quantity of cargo passing and expected to pass through the relevant aerodrome) and is of a kind which the Authority considers that it requires for the purpose of performing any of its functions.

In this subsection " aerodrome licence " means a licence to operate an aerodrome issued by the Authority under an Air Navigation Order.

• (2) Without prejudice to the generality of the preceding subsection, the information relating to the activities of the holder of an air transport licence which the Authority may require him to furnish in pursuance of that subsection includes particulars of any contract or arrangement—

• (a) to which he is or was at any time a party and, if he is not or was not then an operator of aircraft registered in the United Kingdom or a relevant overseas territory or an associated state, to which such an operator is or was then a party ; and

• (b) which constitutes or relates to an agreement or understanding between operators of aircraft or such operators and other persons with respect to any of the following matters, that is to say—

• (i) the provision of flights or of accommodation in aircraft,

• (ii) the sharing or transfer of revenue from flights on particular routes,

• (iii) the sale by a party to the contract or arrangement of tickets for flights in aircraft operated by another party to it,

• (iv) the making available by a party to the contract or arrangement of staff, equipment or other facilities for use by another party to it.

• (3) Provision may be made by regulations for requiring a person of any description specified in subsection (1) of this section to furnish to the Secretary of State, in such form and at such times as may be prescribed, information of such descriptions as may be prescribed, being descriptions of information relating to civil aviation which the Secretary of State considers that he requires for the purpose of performing any of his functions or descriptions of information which he considers that he requires in order to facilitate the performance by the Authority of any of its functions.

• (4) If a person required to furnish information by virtue of any of the preceding provisions of this section fails to comply with the requirement or in purported compliance with the requirement knowingly or recklessly furnishes information which is false in a material particular, then—

• (a) in the case of a failure to comply with the requirement he shall be guilty of an offence and liable on summary conviction to a fine of an amount not exceeding £100 ; and

• (b) in any other case he shall be guilty of an offence and liable on summary conviction to a fine of an amount not exceeding £400 and on conviction on indictment to a fine or imprisonment for a term not exceeding two years or both ; and

• (c) if the requirement was made by virtue of subsection (1) or (2) of this section, the Authority may, whether or not any proceedings in respect of the requirement have been brought in pursuance of paragraph (a) or (b) of this subsection, revoke any licence or certificate or approval which was issued or given by the Authority and to which the requirement related ;

and a person who fails to comply with a requirement imposed on him in pursuance of this section shall be guilty of an offence by virtue of paragraph (a) of this subsection notwithstanding that at any relevant time he is outside the United Kingdom and is neither a United Kingdom national nor a body incorporated under the law of a part of the United Kingdom or of a relevant overseas territory or an associated state.

Disclosure of information

36

• (1) Subject to the following subsection, no information which relates to a particular person and has been furnished to the Authority or the Secretary of State in pursuance of any provision of this Part of this Act or an Air Navigation Order shall be disclosed by the Authority or a member or employee of the Authority or an officer of the Secretary of State unless—

• (a) the person aforesaid has consented in writing to disclosure of the information ; or

• (b) the Secretary of State, after affording that person an opportunity to make representations about the information and considering any representation then made by that person about it, determines that the information may be disclosed ; or

• (c) the Secretary of State determines that the information is of the same kind as other information as respects which he has, after affording that person an opportunity of making representations about it in pursuance of the preceding paragraph, made a determination in pursuance of that paragraph.

• (2) Nothing in the preceding subsection prohibits the disclosure of any information—

• (a) by the Authority or a member or employee of the Authority to the Secretary of State or an officer of his or, with the consent of the Secretary of State, to an international organisation of which the United Kingdom is a member;

• (b) by an officer of the Secretary of State to the Authority or a member or employee of the Authority or to such an organisation or, in accordance with directions given by the Secretary of State,—

• (i) to an officer of any government department, or

• (ii) in connection with negotiations conducted by officers of the Secretary of State with representatives of the government of any country or territory outside the United Kingdom, or

• (iii) in connection with the discharge of any obligation of the United Kingdom under international arrangements;

• (c) to a person to whom the information in question is required to be disclosed by regulations made in pursuance of section 5(2) of this Act;

• (d) in pursuance of section 24(3) or (5) of this Act;

• (e) with a view to the institution of, or otherwise for the purposes of, any criminal proceedings arising out of this Act or an Air Navigation Order or for the purposes of any investigation undertaken in pursuance of regulations made by virtue of section 10 of the Civil Aviation Act 1949 (which provides for the investigation of accidents connected with air navigation).

• (3) If the Authority or a member or employee of the Authority or an officer of the Secretary of State discloses any information in contravention of subsection (1) of this section, it or he shall be liable on summary conviction to a fine of an amount not exceeding £400 or on conviction on indictment to a fine or, except in the case of the Authority, imprisonment for a term not exceeding two years or both.

PART III — The British Airways Board

Constitution

Constitution of the Board

37

• (1) There shall be a body corporate, to be called the British Airways Board (and hereafter in this Act referred to as " the Board "), which shall be constituted in accordance with the following provisions of this Part of this Act and shall have the functions conferred on it by or under those provisions.

• (2) The Board shall consist of not less than eight nor more than fifteen persons appointed by the Secretary of State to be members of the Board; and the Secretary of State—

• (a) shall appoint one member to be the chairman of the Board; and

• (b) may appoint one or more other members to be a deputy chairman or deputy chairmen of the Board.

• (3) The provisions of Schedule 8 to this Act shall have effect with respect to the Board.

• (4) It is hereby declared that the Board is not to be regarded as the servant or agent of the Crown, or as enjoying any status, immunity or privilege of the Crown, or (subject to the provisions of this Act relating to stamp duty) as exempt from any tax, duty, rate, levy or other charge whatsoever, whether general or local, and that its property is not to be regarded as property of or held on behalf of the Crown.

• (5) In Part II of Schedule 1 to the House of Commons Disqualification Act 1957, as it applies in relation to the House of Commons of the Parliament of the United Kingdom, after the entry relating to the British Airports Authority there shall be inserted the words "The British Airways Board"; and in the Part substituted for the said Part II by Schedule 3 to that Act in relation to the Senate and House of Commons of Northern Ireland, after the entry relating to the Attendance Allowance Board for Northern Ireland there shall be inserted the words aforesaid.

General functions of the Board

General powers

38

• (1) Subject to the following provisions of this Part of this Act, the Board shall have power—

• (a) to provide air transport services and carry out all other forms of aerial work, whether on charter terms or otherwise, in any part of the world ;

• (b) without prejudice to the generality of the preceding paragraph, to do all or any of the following—

• (i) to promote the formation of undertakings constituted for the purpose of providing air transport services or engaging in any other activities of a kind which the Board has power to carry on ;

• (ii) to acquire any such undertaking or a financial interest in any such undertaking ;

• (iii) to lend money to or enter into guarantees for the benefit of any such undertaking ;

• (c) to control all the activities of the British Overseas Airways Corporation and the British European Airways Corporation (hereafter in this Act referred to jointly as " the corporations" and severally as "BOAC" and " BEA" respectively) and for that purpose to give to the corporations or either of them such directions as the Board thinks fit;

• (d) to appoint such persons as the Board thinks fit as the chairmen, deputy chairmen and other members of the corporations and to terminate any appointment made by virtue of this paragraph notwithstanding anything in the terms on which the appointment was made;

• (e) to provide for any person technical advice or assistance, including research services, as respects any matter in which the Board has skill or experience ;

• (f) to do anything which is calculated to facilitate, or is conducive or incidental to, the performance of any of the Board's functions (including a function exercisable by the Board by virtue of this paragraph).

• (2) The preceding subsection shall have effect subject to the following limitations, that is to say—

• (a) the Board shall not exercise its powers under paragraph (a) or (b) of that subsection except with and in accordance with a general or special authorisation given by the Secretary of State ;

• (b) the Board shall not have power to manufacture air frames, aero-engines or airscrews except in so far as the Secretary of State provides by order that it shall have such a power ;

• (c) the appointment of a person as the chairman of either of the corporations shall not—

• (i) be made unless he is a member of the Board and the Secretary of State approves the appointment, and

• (ii) be terminated unless the Secretary of State approves its termination ;

• (d) nothing in paragraph (d) of the preceding subsection is to be construed as—

• (i) authorising the termination of an appointment made before that paragraph came into force, or

• (ii) depriving a person whose appointment is terminated in pursuance of that paragraph of his entitlement (if any) to damages or compensation in consequence of the termination.

Reviews of organisation

39

• (1) It shall be the duty of the Board, forthwith after the appointed day and subsequently from time to time when the Board considers it appropriate or the Secretary of State so requires,—

• (a) to undertake a review of the group's affairs for the purpose of determining whether the carrying on of the activities of the group is organised, so far as regards the direction thereof, in the most efficient manner;

• (b) to make a report to the Secretary of State upon the Board's conclusions arising from the review (and in relation to the first review to make the report before such a date as the Secretary of State determines after consultation with the Board).

• (2) It shall be the duty of the Secretary of State to lay before each House of Parliament a copy of each report made in pursuance of the preceding subsection.

• (3) The Secretary of State may, after considering any report made in pursuance of subsection (1) of this section and laying a copy of it before each House of Parliament and after consulting the Board about it, give to the Board such directions as the Secretary of State considers appropriate for securing that the carrying on of the activities mentioned in that subsection is organised as there mentioned; and the Board shall not make or permit any substantial change in the organisation of the said activities except in pursuance of a direction under this subsection or with the consent of the Secretary of State.

Secretary of State's directions in the national interest etc.

40

• (1) Subject to subsection (3) of this section, the Secretary of State may, after consultation with the Board, give to the Board—

• (a) directions of a general character as to the performance of the Board's functions in relation to any matter appearing to the Secretary of State to affect the national interest;

• (b) directions requiring the Board to dispose, or to secure that either of the corporations dispose, of any shares or stock or other financial interest held by the Board or corporation in any undertaking specified in the directions;

• (c) directions requiring the Board to secure that any relevant body specified in the directions—

• (i) discontinues, or restricts to an extent specified in the directions, any of the activities of the body which are so specified, or

• (ii) disposes of such part of the undertaking of the body as is so specified, or

• (iii) disposes of any property of the body which is so specified.

• (2) In paragraph (c) of the preceding subsection " relevant body " means—

• (a) any undertaking of which all the issued share capital is held, directly or through a nominee, by the Board or one of the corporations ; and

• (b) any other undertaking which, if such of its issued share capital as is held directly or through nominees by each of the corporations and each such undertaking as is mentioned in the preceding paragraph were held by the Board, would be an undertaking falling within the preceding paragraph.

• (3) The Secretary of State shall not give directions in pursuance of paragraph (b) or (c) of subsection (1) of this section unless he is satisfied that he will not thereby impede or prevent the proper discharge of the Board's duties.

• (4) The powers to give directions conferred by paragraphs (b) and (c) of subsection (1) of this section shall be exercisable by statutory instrument and a draft of any statutory instrument made by virtue of this subsection shall be laid before Parliament.

Provision of funds etc. for and by the Board

Borrowing by the Board

41

• (1) The Board may, with the consent of or in accordance with a general authorisation given by the Secretary of State, borrow temporarily by overdraft or otherwise such sums in sterling or other currencies as the Board may require for performing its functions.

• (2) The Board may borrow from the Secretary of State, or may with his consent borrow by the issue of stock, such sums as the Board may require for capital purposes or for fulfilling a guarantee entered into by the Board.

• (3) The Board may borrow, from such persons and on such terms as the Secretary of State may from time to time specify, any sums in currency other than sterling which are required by the Board for performing its functions.

• (4) The Board may borrow from either of the corporations such sums as the Board may require for performing its functions.

• (5) The Secretary of State shall not give consent or an authorisation or specify any person or terms in pursuance of the preceding provisions of this section except with the approval of the Treasury.

Government loans to the Board

42

• (1) The Secretary of State may lend to the Board any sums which the Board has power to borrow in pursuance of subsection (2) of the preceding section, and the Treasury may issue to the Secretary of State out of the National Loans Fund any sums necessary to enable the Secretary of State to make loans in pursuance of this subsection.

• (2) Any loans made in pursuance of the preceding subsection shall be repaid to the Secretary of State at such times and by such methods, and interest on the loans shall be paid to him at such times and at such rates, as he may from time to time direct; and all sums received by the Secretary of State in pursuance of this subsection shall be paid into the National Loans Fund.

• (3) The Secretary of State shall prepare in respect of each financial year an account of the sums issued to him in pursuance of subsection (1) of this section and the sums received by him in pursuance of the preceding subsection and of the disposal by him of those sums and shall send the account to the Comptroller and Auditor General before the end of the month of November next following the end of that year; and the Comptroller and Auditor General shall examine, certify and report on the account and lay copies of it and of his report before each House of Parliament.

• (4) The Secretary of State shall not make a loan or give a direction in pursuance of the preceding provisions of this section except with the approval of the Treasury; and the form of the account prepared in pursuance of the preceding subsection and the manner of preparing it shall be such as the Treasury may direct.

Other government investment for the Board

43

• (1) The Secretary of State may pay to the Board out of money provided by Parliament such sums as the Secretary of State thinks fit.

• (2) In consideration of receiving sums in pursuance of the preceding subsection the Board shall make to the Secretary of State, as respects each accounting year (except such a year as respects which the Board satisfies the Secretary of State that it is inappropriate to make a payment in pursuance of this subsection), payments of such amounts as may be proposed by the Board and agreed by the Secretary of State or such other amounts as the Secretary of State may determine after consultation with the Board ; and any sums received by the Secretary of State in pursuance of this subsection shall be paid into the Consolidated Fund.

• (3) The account prepared in respect of any financial year in pursuance of the preceding section shall include particulars of the sums which in that year are paid to the Board or are paid into the Consolidated Fund in pursuance of this section.

• (4) The Secretary of State shall not make a payment, signify agreement or make a determination in pursuance of the preceding provisions of this section except with the approval of the Treasury.

Provision of funds for the corporations by the Board

44

The Board may make payments to either of the corporations on such terms as the Board thinks fit; but nothing in this section shall be construed as prejudicing the Board's power to give directions altering those terms at any time.

Transitional provisions relating to investments etc.

45

• (1) There shall be deemed to be made to the Board on the appointed day—

• (a) a loan under section 42(1) of this Act equal to the capital amounts outstanding immediately before that day in respect of the advances made to BOAC under section 8 of the Act of 1967 ;

• (b) a payment under section 43(1) of this Act equal to the capital amounts so outstanding in respect of the sums paid to BOAC under section 14 of the Act of 1967 (including the sums treated as so paid by virtue of section 14 (3) (b) or deemed to have been so paid by virtue of section 15 of that Act);

• (c) a loan under section 42(1) of this Act equal to the capital amounts so outstanding in respect of the advances made to BEA under section 8 of the Act of 1967 and the debt assumed by BEA under section 1(2) of the Air Corporations Act 1969 ;

and those loans and that payment shall be deemed to be so made on the same terms as to repayment and the payment of interest (but with the substitution of references to the Board for references to either of the corporations and with any other necessary modifications) as the terms as to those matters which immediately before the appointed day related to the corresponding outstanding amounts aforesaid.

• (2) Any entitlement of the Secretary of State and any liability of either of the corporations in respect of the said outstanding amounts shall be extinguished on the appointed day ; but nothing in the preceding provisions of this subsection affects any payment by way of interest or in pursuance of section 14(2) of the Act of 1967 which falls to be made by either of the corporations for any period preceding that day in respect of the capital amounts mentioned in the preceding subsection, and an amount may be fixed in pursuance of the said section 14(2) on or after that day in respect of so much of any accounting year as precedes that day.

• (3) There shall be deemed to be made on the appointed day—

• (a) a payment to BOAC under the preceding section equal to the aggregate of the loan and the payment deemed to be made to the Board by virtue of paragraphs (a) and (b) of subsection (1) of this section ; and

• (b) a payment to BEA under the preceding section equal to the loan deemed to be made to the Board by virtue of paragraph (c) of the said subsection (1);

and those payments shall be deemed to be so made on the same terms (but with the substitution of references to the Board for references to the Secretary of State and with any other necessary modifications) as the terms which immediately before the appointed day related to the corresponding outstanding amounts mentioned in subsection (1) of this section, without prejudice to the Board's power to give directions altering those terms at any time.

Limit on borrowing and other investment

46

• (1) Subject to subsections (2) and (3) of this section, the aggregate of—

• (a) the amount outstanding in respect of the principal of moneys borrowed by the Board (including the loans mentioned in subsection (1)(a) and (c) of the preceding section);

• (b) the payments made to the Board under section 43(1) of this Act (including the payment mentioned in subsection (1)(b) of the preceding section); and

• (c) the amount outstanding in respect of the principal of moneys borrowed by either of the corporations,

shall not at any time exceed £560 million or such greater sum not exceeding £700 million as the Secretary of State may from time to time by order specify.

• (2) The following sums shall be disregarded for the purposes of the preceding subsection, that is to say—

• (a) any sums borrowed by the Board from either of the corporations or by either of the corporations from the other of them or from the Board ;

• (b) such part of the payment mentioned in subsection (1)(b) of the preceding section or of the sums deemed to have been lent by virtue of section 51(2) (a) of this Act as represents the sums in respect of which directions were given under section 14(3)(b) of the Act of 1967 (which provided for certain sums in BOAC's reserve fund to be treated as paid by the Secretary of State under that section);

• (c) any sum which is the subject of directions under section 52(1)(b) of this Act.

• (3) Nothing in subsection (1) of this section shall prevent the Board or either of the corporations from borrowing in excess of the limit imposed by that subsection for the purpose of paying off a loan or redeeming stock which the Board is or the corporation in question are required or entitled to redeem.

• (4) Sections 41 to 43 of this Act shall have effect subject to the preceding provisions of this section.

Stock

47

• (1) The Board may create and issue any stock required for the purpose of exercising its powers under section 41(2) of this Act and may with the consent of the Secretary of State create and issue stock which is to be allotted as consideration for the acquisition of undertakings or of shares or stock in undertakings.

• (2) Stock issued by the Board and the interest on the stock shall be charged on the undertaking and all property and revenues of the Board.

• (3) The stock of the Board shall be issued, transferred, dealt with and redeemed on such terms as the Secretary of State may determine in accordance with regulations.

• (4) The Secretary of State shall not give consent or make regulations in pursuance of the preceding provisions of this section except with the approval of the Treasury.

Guarantees

48

• (1) The Board may guarantee, in such manner and subject to such conditions as it thinks fit, the fulfilment of any guarantee entered into by either of the corporations in pursuance of section 3(4)(c) of the Act of 1967.

• (2) Section 10 of the Act of 1967 (which relates to Treasury guarantees) shall have effect as if any reference to a corporation and section 7(3) of that Act included respectively a reference to the Board and section 41(3) of this Act.

• (3) Where the payment of the principal of and interest on any stock issued by the Board is guaranteed by the Treasury, transfers of the stock shall be exempt from all stamp duty (including stamp duty payable in Northern Ireland).

Further financial provisions

Control of capital expenditure and of hiring of equipment

49

It shall be the duty of the Board to secure that any member of the group—

• (a) in framing and carrying out proposals involving substantial outlay on capital account; and

• (b) in framing and carrying out proposals involving the taking on hire, from a person who is not such a member, of any equipment of which the purchase by the member at the time of the taking on hire would involve such an outlay,

acts on lines settled from time to time by the Board with the approval of the Secretary of State.

Control of return on net assets etc.

50

• (1) It shall be the duty of the Secretary of State to determine the rate of return on net assets (as for the time being defined for the purposes of this section by the Secretary of State) which, having regard to the provisions of section 43(2) of this Act, the Secretary of State considers it is reasonable for the group to achieve as respects a period specified in the determination.

• (2) A determination under this section may—

• (a) specify a period beginning before the date on which the determination is made; and

• (b) be varied by a subsequent determination under this section;

but nothing in paragraph (b) of this subsection shall be construed as implying that a determination under any other provision of this Act may not be varied.

• (3) The Secretary of State shall not make a determination under this section except with the approval of the Treasury and after consultation with the Board ; and it shall be the duty of the Secretary of State to give the Board notice of each determination made under this section.

• (4) It shall be the duty of the Board during any period specified in a determination under this section to exercise its powers with a view to securing that the group achieves a rate of return on net assets in respect of that period which is not less than the rate specified in the determination as for the time being in force.

• (5) The Secretary of State may by order—

• (a) substitute for the duty imposed on the Board by virtue of the preceding subsection a financial duty expressed otherwise than by reference to a rate of return on net assets;

• (b) provide that subsections (1) to (4) of this section shall have effect with such modifications as the Secretary of State considers appropriate in consequence of the substitution; and

• (c) without prejudice to section 63(4)(b) of this Act, make such other incidental or transitional provision as the Secretary of State considers appropriate in consequence of the substitution.

Expiration of ss.43 and 50 and consequential provision as respects investments and revenue

51

• (1) Sections 43 and 50 of this Act, and in so far as any other provision of this Act except this section relates to either of those sections that other provision, shall continue in force until the end of March 1977 and shall then expire unless before they expire the Secretary of State provides by order that they shall continue in force until and expire on a later date specified in the order or shall continue in force permanently.

• (2) On the expiration of the enactments aforesaid—

• (a) any sums paid or deemed to have been paid to the Board in pursuance of the said section 43 shall be deemed to have been lent to the Board in pursuance of section 42 of this Act on the date of the expiration ;

• (b) it shall become the duty of the Board so to conduct its affairs as to secure that the revenue of the group is not less than sufficient for meeting charges properly chargeable to revenue account, taking one year with another ; and

• (c) section 38(2) of the Interpretation Act 1889 (which relates to the effect of repeals) shall apply as if the enactments aforesaid had been repealed on the date of expiration by an Act passed after this Act.

Reserves

52

• (1) The Secretary of State may give to the Board—

• (a) directions with respect to the establishment and maintenance of reserves by the Board or either of the corporations and with respect to the sums to be from time to time transferred to those reserves, the management of those reserves and the application of those reserves (including, in the case of reserves maintained by either of the corporations by virtue of this paragraph or otherwise, directions for the application of a sum standing to the credit of the reserves as if it were a payment made by the Board to the corporation on such terms as may be determined by or in accordance with the directions) ;

• (b) directions providing that a sum standing to the credit of reserves maintained by the Board (whether by virtue of the preceding paragraph or otherwise) shall be deemed to be a loan made to the Board in pursuance of section 42(1) of this Act or a payment made to the Board in pursuance of section 43(1) of this Act.

• (2) Directions given in pursuance of the preceding subsection may be made to have effect from a date earlier than that on which they are given; but no directions shall be given in pursuance of that subsection except after consultation with the Board and with the approval of the Treasury.

Accounts and audit

53

• (1) It shall be the duty of the Board—

• (a) to keep proper accounts and proper records in relation to the accounts ; and

• (b) to prepare in respect of each accounting year, in such form as the Secretary of State with the approval of the Treasury may direct, a statement of those accounts and a statement of the accounts of the group showing the state of affairs and the profit or loss of the Board and of the group respectively ;

and each statement prepared in respect of any accounting year in pursuance of this subsection shall include such particulars as the Secretary of State may direct with respect to any body which was a subsidiary or joint subsidiary at any time during that year and shall, in the case of a statement of the accounts of the group in respect of an accounting year, include a copy of the statements of account in respect of that year which were sent to the Board by the corporations in pursuance of section 25 of the Act of 1967.

• (2) The accounts kept and the statements prepared in pursuance of the preceding subsection shall be audited by auditors appointed annually by the Secretary of State; and a person shall not be qualified to be so appointed unless he is a member of one or more of the following bodies—

• the Institute of Chartered Accountants in England and Wales;

• the Institute of Chartered Accountants of Scotland ;

• the Association of Certified Accountants ;

• the Institute of Chartered Accountants in Ireland ;

• any other body of accountants established in the United Kingdom and for the time being recognised for the purposes of section 161(1)(a) of the Companies Act 1948 by the Secretary of State;

but a Scottish firm may be so appointed if each of the partners therein is qualified to be so appointed.

• (3) As soon as the accounts and statement of accounts of the Board and the statement of accounts of the group for any accounting year have been audited, the Board shall send to the Secretary of State a copy of those statements together with a copy of any report made by the auditors on those statements or on the accounts of the Board or the accounts or statements of accounts of the corporations; and it shall be the duty of the Secretary of State to lay before each House of Parliament a copy of every statement and report of which a copy is received by him in pursuance of this subsection.

Miscellaneous

Annual report

54

• (1) It shall be the duty of the Board to make to the Secretary of State, as soon as possible after the end of each accounting year, a report dealing with the operations of the group during that year and incorporating reports made to the Board by each of the corporations with respect to their operations during that year.

• (2) The report made by the Board for any accounting year in pursuance of the preceding subsection shall set out any direction given to the Board in pursuance of section 39 or section 40(1)(a) of this Act except any direction or part of a direction as to which the Secretary of State has notified the Board that in his opinion it would be against the national interest to set it out.

• (3) It shall be the duty of the Secretary of State to lay before each House of Parliament a copy of each report received by him in pursuance of this section.

Provision by Board of information for Secretary of State

55

Without prejudice to its duties apart from this section, it shall be the duty of the Board to provide the Secretary of State with such information as he may from time to time require with respect to the property, financial position, activities or proposed activities of the group or any member of the group; but no such requirement shall impose upon the Board the duty of providing the Secretary of State with information which the Board does not possess and cannot reasonably be expected to obtain.

Participation of employees of Board etc. in pension schemes

56

• (1) The Secretary of State may by regulations make provision, either by confirming provisions contained in a trust deed or in any other manner, for the participation in a relevant scheme, on such terms as he thinks fit (which may include terms as to the payment of contributions by participants and their employers and former employers or any of them), of persons of prescribed classes who either—

• (a) are employees of the Board or a joint subsidiary or an undertaking which is a subsidiary by reference to share capital held by or a power to appoint directors vested in the Board; or

• (b) are appointed to be members of the Board or directors of a joint subsidiary or such an undertaking as aforesaid and before being so appointed were participants in the scheme.

In this subsection " a relevant scheme" means a pension scheme maintained by virtue of section 24 of the Act of 1967.

• (2) Before making any regulations in pursuance of the preceding subsection the Secretary of State shall consult the Board and each of the corporations and any such organisation representing employees to whom the regulations will relate as the Secretary of State considers appropriate.

Dissolution of the corporations

57

• (1) If the report last made in pursuance of section 39 of this Act includes a statement that in the opinion of the Board either of the corporations should be dissolved, the Secretary of State may make an order—

• (a) transferring to the Board all property, rights and liabilities which immediately before the order comes into force are property, rights and liabilities of the corporation ; and

• (b) dissolving the corporation on a day specified in the order; and

• (c) making such modifications of the provisions of any enactment relating to either of the corporations (including this Act) as he considers are appropriate in consequence of the dissolution.

• (2) Where an asset, or the right to receive an asset, is transferred from a corporation to the Board by an order under this section, then for the purposes of Part I of the Industrial Development Act 1966—

• (a) so much of any expenditure incurred by the corporation in providing that asset as is approved capital expenditure (within the meaning of that Part of that Act) in respect of which no payment of investment grant has been made to the corporation shall be treated as having been incurred by the Board and not by the corporation ;

• (b) the asset, if provided for the purposes of the business of the corporation, shall be treated as having been provided for the purposes of the business of the Board; and

• (c) where the asset itself is transferred to the Board, it shall be treated as a new asset if it would have fallen to be so treated if it had remained vested in the corporation.

Supplemental

Duty of Board and corporations to comply with directions

58

It shall be the duty of the Board to comply with any directions given to it by the Secretary of State in pursuance of this Part of this Act (including Schedule 8 to this Act), and it shall be the duty of each of the corporations to comply with any directions given to the corporation by the Board in pursuance of this Part of this Act.

Group income and relief for tax purposes, and relief from transfer stamp duty

59

• (1) For the purposes of section 256 of the Income and Corporation Taxes Act 1970 (which relates to group income), each of the corporations shall be treated as a 51 per cent. subsidiary (within the meaning of that Act) of the Board and " dividends " in that section shall include any payments in the nature of dividends which are made by either of the corporations to the Board; and for the purposes of sections 258 to 264 of that Act (which relate to group relief), each of the corporations shall be treated as a 75 per cent. subsidiary (within the meaning of that Act) of the Board.

• (2) Stamp duty (including stamp duty payable in Northern Ireland) shall not be payable on—

• (a) any instrument as to which the Board certifies to the Commissioners of Inland Revenue or, as the case may be, the Ministry of Finance for Northern Ireland that it was executed solely for the purpose of transferring, in pursuance of a direction given by virtue of section 38(1)(c) of this Act, property from the Board to either of the corporations or from either of the corporations to the Board or from one to the other of the corporations;

• (b) any order made by virtue of section 57(1) of this Act;

but no such instrument as is mentioned in paragraph (a) of this subsection shall be deemed to be duly stamped unless it is stamped with the duty to which it is liable apart from this subsection or it is stamped in accordance with section 12 of the Stamp Act 1891 with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped.

Interpretation of Part III

60

• (1) In this Part of this Act (including Schedule 8 to this Act) the following expressions have the following meanings except where the context otherwise requires—

• " the Act of 1967 " means the Air Corporations Act 1967 ;

• " the corporations ", " BOAC " and " BEA " have the meanings assigned to them respectively by section 38(1)(c) of this Act;

• " the group " means the Board, the corporations and all subsidiaries and joint subsidiaries, and " member of the group " shall be construed accordingly;

• " joint subsidiary " means any undertaking of which two or more of the following bodies, that is to say the Board, the corporations and all subsidiaries, are members and which would, if the interests and powers relating to the undertaking of such of those bodies as are members of it were vested in one of those bodies, be a subsidiary by reference to that one of them ;

• " subsidiary " means any undertaking of which more than one half of the issued share capital is held, directly or through a nominee, by the Board or one of the corporations and any undertaking in relation to which the Board has power or one of the corporations have power directly or indirectly to appoint the majority of the directors.

• (2) In this Part of this Act (including Schedule 8 to this Act), " the appointed day " means such day as the Secretary of State may by order appoint; and different days may be appointed in pursuance of this subsection for different provisions of this Part of this Act (including that Schedule) and for such different purposes of the same provision as may be specified in the order.

PART IV — Miscellaneous and general

Official secrets

61

• (1) For the purposes of section 2 of the Official Secrets Act 1911 (which among other things relates to the wrongful communication of information) a member and an employee of the Authority shall be deemed to hold an office under Her Majesty and a contract with the Authority shall be deemed to be a contract with Her Majesty.

• (2) For the purposes of paragraph (c) of section 3 of the said Act of 1911 (under which the Secretary of State may by order declare any place belonging to Her Majesty to be a prohibited place for the purposes of that Act) a place belonging to or used for the purposes of the Authority shall be deemed to be a place belonging to Her Majesty.

• (3) Subject to the following subsection no person shall, except with the consent of and in accordance with any conditions imposed by the Authority, be entitled to exercise any right of entry (whether arising by virtue of a statutory provision or otherwise) upon a place which by virtue of the preceding subsection is a prohibited place for the purposes of the said Act of 1911.

• (4) The preceding subsection shall not apply to—

• (a) a constable acting in the course of his duty as such ; or

• (b) an officer of customs and excise or inland revenue acting in the execution of his duty as such ; or

• (c) an officer of any government department specially authorised in that behalf by or on behalf of a Minister of the Crown;

and if the Authority refuses consent for or imposes conditions on the exercise by any person of a right of entry upon such a place as is mentioned in the preceding subsection and that person applies to the Secretary of State for an authorisation to exercise the right, the Secretary of State may if he thinks fit authorise that person to exercise it subject to such conditions, if any, as the Secretary of State may determine.

Offences

62

• (1) In section 8(4) of the Civil Aviation Act 1949 (which enables an Air Navigation Order to provide for penalties which may include a fine of £200 or imprisonment for six months) for the words from " of penalties " to " six months " there shall be substituted the words "on summary conviction to a fine not exceeding £400 and on conviction on indictment to a fine or imprisonment for a term not exceeding two years or both".

• (2) The Authority shall be a public body for the purposes of the Prevention of Corruption Acts 1889 to 1916, and accordingly the expressions " public body " and " such public body " in those Acts shall include the Authority.

• (3) When an offence under section 21(5), 24(7) or 35(4) of this Act or regulations made by virtue of section 5(2)(b) or 26 of this Act which has been committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and be liable to be proceeded against and punished accordingly.

• (4) Where the affairs of a body corporate are managed by its members the preceding subsection shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

• (5) Any offence under any provision made by or under this Act shall, for the purpose of conferring jurisdiction, be deemed to have been committed in any place where the offender may for the time being be.

Orders and regulations

63

• (1) Any power to make an order or regulations which is conferred on the Secretary of State by this Act (excluding section 15) shall be exercisable by statutory instrument; and any statutory instrument made by virtue of this subsection (except an instrument containing such orders as are mentioned in the following subsection, orders appointing a day and regulations under section 56 of this Act) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (2) No order shall be made under section 50(5), 51(1) or 57(1) of this Act unless a draft of the order has been approved by a resolution of each House of Parliament, and no order shall be made under section 46(1) of this Act unless a draft of the order has been approved by a resolution of the House of Commons.

• (3) An order made by the Secretary of State in pursuance of any provision of this Act (except section 15) may be revoked or varied by a subsequent order made in pursuance of that provision; but an order appointing a day with respect to any matter shall not be revoked or varied by virtue of this subsection as respects that matter by an order made on or after that day.

• (4) Any power to make an order or regulations which is conferred on the Secretary of State by this Act (excluding section 15) includes power—

• (a) to make different provision for different circumstances ; and

• (b) to include in the order or regulations such incidental or supplementary provisions as the Secretary of State considers appropriate for the purposes of the order or regulations.

Interpretation

64

• (1) In this Act the following expressions have the following meanings except where the context otherwise requires—

• " accounting year ", in relation to the Authority or the Board or the group within the meaning of Part III of this Act, means the period of twelve months ending with the 31st March in any year except that the first accounting year of the Authority or the Board or the said group shall, if the Secretary of State so directs, be such period shorter or longer than twelve months (but not longer than two years) and ending with a 31st day of March as is specified in the direction;

• " aerodrome ", except in section 14(1) of this Act and Schedule 2 to this Act, means any area of land or water designed, equipped, set apart or commonly used for affording facilities for the landing and departure of aircraft and includes any area or space, whether on the ground, on the roof of a building or elsewhere, which is designed, equipped or set apart for affording facilities for the landing and departure of aircraft capable of descending or climbing vertically ;

• " Air Navigation Order " means an Order in Council under section 8 of the Civil Aviation Act 1949 (which among other things enables provision to be made by Order in Council with respect to the safety and navigation of aircraft);

• " air navigation services " includes information, directions and other facilities furnished, issued or provided in connection with the navigation or movement of aircraft and includes the control of movement of vehicles in any part of an aerodrome used for the movement of aircraft;

• " air transport licence " has the meaning assigned to it by section 21(1)(a) of this Act;

• " air transport service " means a service for the carriage by air of passengers or cargo ;

• " the Authority " has the meaning assigned to it by section 1(1) of this Act;

• " the Board " has the meaning assigned to it by section 37(1) of this Act;

• " cargo " includes mail;

• " flight " means a journey by air beginning when the aircraft in question takes off and ending when it next lands;

• " functions " includes powers and duties ;

• " the initial debt " has the meaning assigned to it by section 7(1) of this Act;

• " land " includes any estate or other interest in land and any easement or servitude ;

• " licence ", in sections 22 to 24 of this Act, means air transport licence;

• " modifications " includes additions, omissions and amendments, and " modify " shall be construed accordingly ;

• " operator ", in relation to an aircraft, means the person for the time being having the management of the aircraft;

• " prescribed " means prescribed by regulations ;

• " regulations " means regulations made by the Secretary of State ;

• " relevant overseas territory " means any of the Channel Islands, the Isle of Man, any colony and any country or place outside Her Majesty's dominions in which for the time being Her Majesty has jurisdiction ;

• " reward ", in relation to a flight, includes any form of consideration received or to be received wholly or partly in connection with the flight irrespective of the person by whom or to whom the consideration has been or is to be given ;

• " subsidiary", except in Part III of this Act, shall be construed in accordance with section 154 of the Companies Act 1948 ; and

• " United Kingdom national " means an individual who is— a citizen of the United Kingdom and Colonies ; or a British subject by virtue of section 2 of the British Nationality Act 1948 (which provides for the continuance as British subjects of certain citizens of the Republic of Ireland); or a British subject without citizenship by virtue of section 13 or section 16 of the said Act of 1948 ; or a British subject by virtue of the British Nationality Act 1965 ; or a British protected person within the meaning of the said Act of 1948.

• (2) For the purposes of this Act a hovercraft within the meaning of the Hovercraft Act 1968 is not an aircraft.

• (3) Any reference in this Act to any enactment is a reference to it as amended by or under any other enactment.

Application of Act to Northern Ireland

65

• (1) In the application of this Act to Northern Ireland—

• (a) any reference to an enactment of the Parliament of Northern Ireland (except a reference to Schedule 5 or 6 to the Roads Act (Northern Ireland) 1948) or to an enactment which that Parliament has power to amend—

• (i) shall be construed as including a reference to any enactment of the Parliament of Northern Ireland passed after this Act and re-enacting the said enactment with or without modifications;

• (ii) shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by any enactment, whether passed before or after this Act, and as including a reference thereto as extended or applied by or under any other enactment, including this Act;

• (b) "Act" and "enactment" (except in subsection (3) of the preceding section) include respectively an Act and an enactment of the Parliament of Northern Ireland.

• (2) For the purposes of section 6 of the Government of Ireland Act 1920, this Act shall, so far as it relates to matters within the powers of the Parliament of Northern Ireland, be deemed to be an Act passed before the appointed day within the meaning of that section.

Application of Act to certain overseas territories

66

• (1) Her Majesty may by Order in Council direct that—

• (a) any of the provisions of this Act shall extend, with such modifications (if any) as may be specified in the Order, to any relevant overseas territory; or

• (b) any provision of this Act shall apply in relation to an aircraft registered in any relevant overseas territory as it applies in relation to an aircraft registered in the United Kingdom but with such modifications (if any) as may be so specified.

• (2) An Order in Council made by virtue of the preceding subsection may be revoked or varied by a subsequent Order in Council so made.

Expenses

67

There shall be paid out of money provided by Parliament—

• (a) any administrative expenses incurred by any government department in consequence of any provision of this Act;

• (b) any increase attributable to this Act in the sums payable under any other Act out of money so provided.

Transitional provisions and saving

68

• (1) The transitional provisions contained in Schedule 9 to this Act shall have effect.

• (2) Nothing in this Act shall be construed as derogating from the powers to make Orders in Council or other instruments conferring a function on the Authority which are exercisable by virtue of section 8 of the Civil Aviation Act 1949 (which among other things relates to the safety and navigation of aircraft) or section 16 of the Civil Aviation Act 1968 (which relates to the mortgaging of aircraft) or by virtue of any other enactment whatsoever.

Minor and consequential amendments of enactments, and repeals

69

• (1) The enactments specified in Schedule 10 to this Act shall have effect subject to the amendments there specified (which are minor amendments and amendments consequential on the provisions of this Act).

• (2) The enactments mentioned in the first and second columns of Schedule 11 to this Act are hereby repealed to the extent specified in the third column of that Schedule.

Citation and commencement

70

• (1) This Act may be cited as the Civil Aviation Act 1971, and this Act and the Civil Aviation Acts 1949 to 1968 may be cited together as the Civil Aviation Acts 1949 to 1971.

• (2) This Act shall come into force on such day as the Secretary of State may by order appoint; and different days may be appointed in pursuance of this subsection for different provisions of this Act and for such different purposes of the same provision as may be specified in the order.

SCHEDULE 1

Appointment and tenure of members

1

It shall be the duty of the Secretary of State—

• (a) to satisfy himself, before he appoints a person to be a member, that that person will have no such financial or other interest as is likely to affect prejudicially the performance of his functions as a member ; and

• (b) to satisfy himself from time to time with respect to each member that the member has no such interest;

and a person who is a member or whom the Secretary of State proposes to appoint as a member shall, whenever requested by the Secretary of State to do so, furnish him with such information as he may specify with a view to carrying out his duty under this paragraph.

2

Subject to the following provisions of this Schedule, a person shall hold and vacate office as a member or the chairman or a deputy chairman in accordance with the terms of the instrument appointing him to that office.

3

A person may at any time resign his office as a member or the chairman or a deputy chairman by giving to the Secretary of State a notice in writing signed by that person and stating that he resigns that office.

4

• (1) If a member becomes or ceases to be the chairman or a deputy chairman the Secretary of State may vary the terms of the instrument appointing him to be a member so as to alter the date on which he is to vacate office as a member.

• (2) If the chairman or a deputy chairman ceases to be a member, he shall cease to be the chairman or a deputy chairman, as the case may be.

5

• (1) If the Secretary of State is satisfied that a member—

• (a) has been absent from meetings of the Authority for a period longer than three consecutive months without the permission of the Authority ; or

• (b) has become bankrupt or made an arrangement with his creditors ; or

• (c) is incapacitated by physical or mental illness ; or

• (d) is otherwise unable or unfit to discharge the functions of a member,

the Secretary of State may declare his office as a member to be vacant and shall notify the declaration in such manner as the Secretary of State thinks fit; and thereupon the office shall become vacant.

• (2) In the application of the preceding sub-paragraph to Scotland for the references in paragraph (b) to a member's having become bankrupt and to a member's having made an arrangement with his creditors there shall be substituted respectively references to sequestration of a member's estate having been awarded and to a member's having made a trust deed for behoof of his creditors or a composition contract.

Remuneration etc. of members

6

The Authority shall pay to each member such remuneration as the Secretary of State may determine with the consent of the Minister for the Civil Service.

7

• (1) The Authority shall make such provision as may be determined by the Secretary of State with the consent of the said Minister for the payment of pensions, allowances or gratuities to or in respect of such members as may be so determined.

• (2) The Secretary of State shall as soon as possible after making a determination in pursuance of the preceding sub-paragraph lay before each House of Parliament a statement containing particulars of the determination.

8

Where a person ceases to be a member otherwise than on the expiry of his term of office and it appears to the Secretary of State that there are special circumstances which make it right for that person to receive compensation, the Secretary of State may with the consent of the said Minister direct the Authority to make to that person a payment of such amount as the Secretary of State may determine with the consent of the said Minister.

Proceedings

9

Subject to section 5 of this Act, the quorum of the Authority and the arrangements relating to meetings of the Authority shall be such as the Authority may determine.

10

• (1) A member who is in any way directly or indirectly interested in a contract made or proposed to be made by the Authority, or in any other matter whatsoever which falls to be considered by the Authority, shall disclose the nature of his interest at a meeting of the Authority and the disclosure shall be recorded in the minutes of the meeting ; and the member shall not—

• (a) in the case of a contract, take part in any deliberation or decision of the Authority with respect to the contract; and

• (b) in the case of any other matter, take part in any deliberation or decision of the Authority with respect to the matter if the Authority decides that the interest in question might affect prejudicially the member's consideration of the matter.

• (2) A notice given by a member at a meeting of the Authority to the effect that he is a member of a specified company or firm and is to be regarded as interested in any contract which is made after the date of the notice with the company or firm shall, for the purposes of the preceding sub-paragraph, be a sufficient disclosure of his interest in relation to any contract so made.

• (3) A member need not attend in person at a meeting of the Authority in order to make a disclosure which he is required to make under this paragraph if he takes reasonable steps to secure that the disclosure is made by a notice which is taken into consideration and read at such a meeting.

11

The validity of any proceedings of the Authority shall not be affected by any vacancy among the members or by any defect in the appointment of a member or by any failure to comply with the requirements of the preceding paragraph.

Staff

12

• (1) The Authority may appoint such officers and servants as it may determine with the consent of the Secretary of State as to numbers and remuneration; and any reference in this Act to an employee of the Authority is a reference to a person appointed in pursuance of this sub-paragraph or employed by the Authority in pursuance of paragraph 14 of this Schedule.

• (2) If before such date as the Secretary of State may determine for the purposes of this sub-paragraph the Authority makes a contract with any person for his employment by the Authority, the contract shall be of no effect unless its terms have been approved by the Secretary of State; and before the Secretary of State approves in pursuance of this sub-paragraph the terms of a contract to be offered to a person employed in employment to which paragraph 1 of Schedule 9 to this Act applies it shall be the duty of the Secretary of State to satisfy himself that those terms, taken as a whole, are not less favourable to that person than the terms on which he is employed as aforesaid on the date when the offer is made.

• (3) Different numbers, remuneration and dates may be determined in pursuance of this paragraph in relation to employees or proposed employees of different categories.

• (4) The Secretary of State shall not give his consent in pursuance of sub-paragraph (1) of this paragraph except with the approval of the Minister for the Civil Service.

13

• (1) The Authority shall, in the case of such of its employees as may be determined by the Secretary of State with the approval of the Minister for the Civil Service, pay such pensions, allowances or gratuities to or in respect of them as may be so determined, make such payments towards the provision of such pensions, allowances or gratuities as may be so determined or provide and maintain such schemes (whether contributory or not) for the payment of such pensions, allowances or gratuities as may be so determined,

• (2) If an employee of the Authority becomes a member and was by reference to his employment by the Authority a participant in a pension scheme maintained by the Authority for the benefit of any of its employees, the Authority may determine that his service as a member shall be treated for the purposes of the scheme as service as an employee of the Authority ; and the benefits payable to or in respect of a person by virtue of the preceding provisions of this sub-paragraph shall be in addition to the benefits, if any, which are payable to or in respect of him by virtue of paragraph 7 of this Schedule.

14

• (1) Notwithstanding anything in the last two preceding paragraphs, it shall be the duty of the Authority to make, to each person who at the passing of this Act and on such subsequent date as the Secretary of State may determine is employed by a relevant body, an offer of employment by the Authority on terms which, taken as a whole, are not less favourable to that person than the terms on which he is employed by the relevant body on the date when the offer is made ; and an offer made in pursuance of this paragraph shall not be revocable during the period of three months beginning with the date on which the offer is made.

• (2) In the preceding sub-paragraph " relevant body " means a body which by virtue of section 27(1) of this Act is to cease or has ceased to have functions conferred on it in pursuance of section 7 of the Civil Aviation Act 1949.

15

It shall be the duty of the Authority, except so far as it is satisfied that adequate machinery exists for achieving the purpose of this paragraph, to seek consultation with any organisation appearing to the Authority to be appropriate with a view to the conclusion between the Authority and that organisation of such agreements as appear to the parties to be desirable with respect to the establishment and maintenance of machinery for—

• (a) the settlement by negotiation of terms and conditions of employment of employees of the Authority, with provision for reference to arbitration in default of such a settlement in such cases as may be determined by or under the agreements ; and

• (b) the promotion and encouragement of measures affecting the safety, health and welfare of employees of the Authority and the discussion of other matters of mutual interest to the Authority and its employees, including efficiency in the performance of the Authority's functions.

Performance of functions

16

Subject to section 5(1) of this Act, the Authority may authorise any member or employee of the Authority and, except so far as regulations provide otherwise, any other person to perform on behalf of the Authority such of the Authority's functions (including the function conferred on the Authority by this paragraph) as are specified in the authorisation.

Instruments and contracts

17

The fixing of the common seal of the Authority shall be authenticated by the signature of the secretary of the Authority or some other person authorised by the Authority to act for that purpose.

18

A document purporting to be duly executed under the seal of the Authority shall be received in evidence and shall, unless the contrary is proved, be deemed to be so executed.

Interpretation

19

In this Schedule "the chairman", "a deputy chairman" and " a member " mean respectively the chairman, a deputy chairman and a member of the Authority, and " gratuities " includes a refund of contributions to a pension fund with or without interest on or any other addition to the contributions.

SCHEDULE 2

1

• (1) Subject to the following paragraphs of this Schedule, there shall by virtue of this paragraph be transferred to and vest in the Authority on the vesting date—

• (a) the property, rights and liabilities of the Board of Trade which immediately before that date were comprised in the undertakings represented by the aerodromes at Aberdeen, Benbecula, Inverness, Islay (Port Ellen), Kirkwall, Storno-way, Sumburgh, Tiree and Wick ;

• (b) the property, rights and liabilities of the Board of Trade which immediately before that date were comprised in the following undertakings, namely, the National Air Traffic Services, the Civil Aviation Flying Unit, the Fire Service Training School at Stansted, the Secretary of State's medical unit at Heathrow and the unit of the Directorate of Operational Research and Analysis at Heathrow ;

• (c) the property, rights and liabilities of the Secretary of State for Trade and Industry which immediately before that date were comprised in any of the undertakings mentioned in the preceding paragraph ; and

• (d) all other property, rights and liabilities of the Board of Trade which are specified in a notice in writing given by the Secretary of State to the Authority before that date as being—

• (i) property used and rights enjoyed by the Board of Trade for the purposes of functions of a kind which the Secretary of State considers that the Authority will or may perform by virtue of this Act and he will cease to perform in consequence of this Act, and

• (ii) liabilities to which the Board of Trade are subject in connection with such functions,

and which immediately before that date are property, rights and liabilities of the Board of Trade.

• (2) Any reference in the preceding sub-paragraph to property and rights of the Board of Trade includes a reference to property and rights of the Crown or a government department other than the department of the Board of Trade which immediately before the relevant vesting date were being managed by the Secretary of State (other than property and rights of his which were then included in an undertaking mentioned in paragraph (b) of the preceding sub-paragraph), and any reference in that sub-paragraph to liabilities of the Board of Trade includes a reference to liabilities of the Crown or such a government department which immediately before that date were being discharged on behalf of the Crown or the department by the Secretary of State (other than liabilities which were then included in such an undertaking).

2

• (1) The preceding paragraph shall not apply to such property, rights or liabilities as the Secretary of State may by a determination in writing designate as property or rights required for the purposes of the Crown or any government department or as liabilities to which it is appropriate for the Crown or a government department to be subject.

• (2) A determination under the preceding sub-paragraph may provide for the creation in favour of the Crown or a government department of such rights, whether or not capable of subsisting as legal estates in land, as the Secretary of State considers are appropriate for the purpose of facilitating the use of any property designated by such a determination.

• (3) In the application of the preceding sub-paragraph to Scotland, for the reference to legal estates in land there shall be substituted a reference to estates in land.

3

• (1) The Secretary of State may make a determination in writing applying or excluding paragraph 1 of this Schedule to such extent as he considers is appropriate—

• (a) for the purpose of making minor adjustments of the property, rights and liabilities to which that paragraph applies so as to facilitate the performance by the Authority of its functions ; or

• (b) for the purpose of removing uncertainty as to the application of that paragraph to any property, rights or liabilities or of facilitating the registration under the Land Registration Act 1925 or the Land Registration Act (Northern Ireland) 1970 of the Authority's title to any land in England or Wales or Northern Ireland which is transferred by that paragraph ;

and a determination under this paragraph may in particular provide for dividing or apportioning any property, rights or liabilities between the Crown, government departments and the Authority.

• (2) In the application of the preceding sub-paragraph to Scotland, for the words from " or of facilitating " to " that paragraph " there shall be substituted the words "or of facilitating the completion of the title of the Authority to any land as heritable rights in Scotland transferred by that paragraph".

4

A determination under paragraph 2 or 3 of this Schedule with respect to any property, rights or liabilities shall not be made after the expiration of the period of twelve months beginning with the day which is the vesting date in relation to that property or those rights or liabilities.

5

• (1) The Secretary of State may issue a certificate stating that any property, rights and liabilities of the Crown or a government department were or were not transferred to the Authority by this Schedule; and any such certificate shall be conclusive evidence that the property, rights and liabilities in question were or were not so transferred.

• (2) The issue of a certificate under the preceding sub-paragraph shall not prevent the making of a subsequent determination under paragraph 2 or 3 of this Schedule relating to the property, rights or liabilities to which the certificate relates.

6

The Secretary of State shall, before making a determination or issuing a certificate under this Schedule, consult the Authority and shall, after making a determination or issuing a certificate under this Schedule, send a copy of it to the Authority.

7

• (1) Any agreement and any provision in a document which is not an agreement shall, so far as may be necessary for or in consequence of the transfers effected by this Schedule, have effect as if references to, or to an officer of, the Crown or a government department were, or as the case may be included, references to or to an employee of the Authority.

• (2) Without prejudice to the preceding sub-paragraph, any agreement to which the Crown or a government department were a party, whether in writing or not and whether or not of such a nature that rights and liabilities under it could be assigned, shall have effect, so far as may be necessary for or in consequence of the transfers effected by this Schedule, as if the Authority had been a party to the agreement.

• (3) Without prejudice to sub-paragraph (1) of this paragraph, where by the operation of this Schedule any right or liability becomes a right or liability of the Authority, the Authority and all other persons shall have the same rights, powers and remedies (and in particular the same rights, powers and remedies as to taking or resisting legal proceedings or the making or resisting of applications to any authority) for ascertaining, perfecting or enforcing the right or liability as they would have had if it had at all times been a right or liability of the Authority ; and any legal proceedings or applications pending at the relevant vesting date by or against the Crown or a government department, in so far as they relate to any property, right or liability transferred to the Authority by this Schedule or to any agreement or document which has effect in accordance with this Schedule, shall be continued by or against the Authority to the exclusion of the Crown or department.

8

• (1) Nothing in section 12 of the Finance Act 1895 (which requires certain Acts to be stamped as conveyances on sale) including that section as it applies in Northern Ireland and nothing in section 52 of the Finance Act 1946 (which exempts from stamp duty certain documents connected with nationalisation schemes) shall apply to this Act or a determination in writing under paragraph 2 or 3 of this Schedule, and stamp duty shall not be payable on such a determination.

• (2) Section 9 of the Finance Act (Northern Ireland) 1936 (which relates to the furnishing to the Ministry of Finance of particulars relating to transfers of land) shall not apply in relation to any vesting of an estate or interest in land in the Authority which is effected by or under this Act.

9

For the purposes of the Capital Allowances Act 1968 (which confers relief from income tax in respect of certain capital expenditure) and Chapter II of Part XI of the Income and Corporation Taxes Act 1970 (which relates to companies' capital gains) the transfer by this Schedule of any assets shall be deemed to be a sale of those assets by the Secretary of State to the Authority in the open market at a price equal to so much of the initial debt as is determined by the Secretary of State to relate to those assets; but no initial allowance shall be made under the said Act of 1968 in respect of any of those assets.

10

• (1) In this Schedule " the vesting date " means such day as the Secretary of State may by order appoint; and it is hereby declared that in this Schedule " property " includes land.

• (2) Different days may be appointed in pursuance of the preceding sub-paragraph in relation to different property, rights or liabilities.

• (3) Where a government department or a person acting on behalf of the Crown retains possession of any document relating to the title to any land transferred to the Authority by this Schedule, the department or person shall be assumed to have given to the Authority an acknowledgment in writing of the right of the Authority to the production of that document and to delivery of copies of it; and as respects land in England or Wales section 64 of the Law of Property Act 1925 and as respects land in Northern Ireland section 9 of the Conveyancing Act 1881 (which relate to the production and safe custody of documents) shall have effect accordingly and as if the acknowledgment did not contain any such expression of a contrary intention as is mentioned in the said section 64 or section 9.

• (4) In the application of the preceding sub-paragraph to Scotland, for the words from " an acknowledgment" onwards there shall be substituted the words "an undertaking to produce those documents to the Authority (on a proper receipt and undertaking to re-deliver) for the purpose of enabling the Authority to maintain and defend its rights in respect of that part of the land which has vested in it".

SCHEDULE 3

PART I — Acquisition of land by the Authority

Entry for purposes of survey

1

• (1) Where the Secretary of State has confirmed an order authorising the Authority to acquire land in Great Britain compulsorily or is considering the confirmation of such an order, any person authorised in writing by the Secretary of State may at all reasonable times, on producing if so required evidence of his authority in that behalf, enter upon any of the land in order to make any survey which the Secretary of State or the Authority requires to be made for the purpose of any steps to be taken in consequence of the order or, as the case may be, for the purpose of determining whether the order should be confirmed; but admission shall not by virtue of this sub-paragraph be demanded as of right to any land which is occupied unless eight days' notice of the intended entry has been served on the occupier.

• (2) Where the Authority proposes to acquire land in Northern Ireland compulsorily, any person authorised in writing by the Secretary of State may at all reasonable times, on producing if so required evidence of his authority in that behalf, enter upon any of the land in order to make any survey which the Secretary of State or the Authority requires to be made for the purpose of ascertaining whether the land would be suitable for the purposes for which it is proposed to acquire it; but admission shall not by virtue of this sub-paragraph be demanded as of right to any land which is occupied unless eight days' notice of the intended entry has been served on the occupier.

• (3) Subsections (2) to (5) of section 29 of the Civil Aviation Act 1949 (which contains supplementary provisions relating to entry for the purposes of survey) shall apply with any necessary modifications in relation to the preceding sub-paragraphs as they apply in relation to subsection (1) of that section, but any proceedings for an offence under subsection (2) of that section as so applied may be instituted in England and Wales or Northern Ireland by the Authority without the consent of the Secretary of State or the Director of Public Prosecutions and any compensation payable under subsection (5) of that section as so applied shall be paid by the Authority instead of the Secretary of State.

Displacements from land

2

• (1) Where the Authority has acquired land for purposes connected with the discharge of its functions and the use of the land by the Authority for those purposes will involve the displacement of persons residing in premises on the land, it shall be the duty of the Authority, in so far as there is no other residential accommodation available on reasonable terms to the persons who require it in consequence of the displacement, being residential accommodation suitable to the reasonable requirements of those persons, to secure the provision of such accommodation.

• (2) The Authority shall secure the provision of the accommodation in advance of the displacement unless the Secretary of State is satisfied that for reasons of exceptional public importance it is essential that the displacement should be effected before such accommodation as aforesaid can be found.

Adjustment of functions of statutory undertakers

3

Schedule 4 to the said Act of 1949 (which provides for the adjustment of statutory undertakers' functions) shall apply in relation to any order for the compulsory purchase of land by the Authority which the Secretary of State has confirmed or proposes to confirm as it applies to an order made or proposed to be made under Part III of that Act.

PART II — Orders relating to control of land

Creation of rights over land, and control over civil aerodromes

4

• (1) In section 24 of the Civil Aviation Act 1949 (hereafter in this Schedule referred to as " the Act of 1949 ") references to land vested in the Secretary of State or which he proposes to acquire shall include references to land vested in the Authority or which the Authority proposes to acquire, and any rights created by an order made by virtue of this paragraph shall be rights in favour of the Authority.

• (2) Any compensation payable under subsection (4) of that section or Part III of Schedule 1 to that Act in consequence of an order made by virtue of this paragraph shall be payable by the Authority instead of the Secretary of State.

• (3) In subsection (5) of that section the reference to the consent of the Secretary of State shall, in relation to an order made by virtue of this paragraph, be construed as a reference to the consent either of the Secretary of State or of the Authority.

• (4) Notwithstanding anything in subsection (9) of that section, proceedings for an offence under that section in relation to an order made by virtue of this paragraph may be instituted in England and Wales or Northern Ireland by the Authority without the consent of the Secretary of State or the Director of Public Prosecutions.

5

• (1) In section 25 of the Act of 1949 references to any aerodrome vested in the Secretary of State or under his control shall include references to any aerodrome in the United Kingdom which is owned or managed by the Authority.

• (2) Notwithstanding anything in subsection (6) of that section, proceedings for an offence against an order under that section made by virtue of this paragraph may be instituted in England and Wales or Northern Ireland by the Authority without the consent of the Secretary of State or the Director of Public Prosecutions.

• (3) Any compensation payable under Schedule 2 to the Act of 1949 in consequence of any order made by virtue of this paragraph shall be payable by the Authority instead of the Secretary of State.

6

• (1) For paragraph 1 of Schedule 1 to the Act of 1949, as it applies in relation to orders made by virtue of paragraph 4 or 5 of this Schedule on the application of the Authority, there shall be substituted the following paragraph:—

(1) Before making an application for an order the Civil Aviation Authority— (a) shall publish in one or more newspapers circulating in the district in which the land is situated ; and (b) shall serve on every owner, lessee and occupier of any of the land and upon every local authority within whose area any of the land is situated, a notice stating that the Authority proposes to apply for the order and the effect thereof and specifying the time (not being less than forty-two days from service of the notice) within which and the manner in which objections to the making of the order may be made

.

• (2) In the case of an order made by virtue of paragraph 4 or 5 of this Schedule, the notice to be published under paragraph 5 of the said Schedule 1 shall be published by the Authority and not by the Secretary of State.

Control over land in interests of civil aviation

7

• (1) In section 26 of the Act of 1949 references to any land, structures, works or apparatus vested in the Secretary of State or which he proposes to acquire or install shall include references to any land, structures, works or apparatus vested in the Authority or which the Authority proposes to acquire or install.

• (2) In the case of a direction given by virtue of this paragraph, it shall be for the Authority instead of the Secretary of State to give the notices required by paragraph 1 of Schedule 3 to the Act of 1949.

• (3) Any compensation payable under that Schedule in consequence of a direction given by virtue of this paragraph shall be payable by the Authority instead of the Secretary of State.

Stopping up and diversion of highways

8

In section 28 of the Act of 1949 references to land vested in the Secretary of State or which he proposes to acquire shall include references to land vested in the Authority or which the Authority proposes to acquire.

Supplementary

9

• (1) It shall be for the Authority, instead of the Secretary of State, to act under section 33(2) and (5) of the Act of 1949 (local land charges) as regards any order made or direction given by virtue of paragraph 4, 5 or 7 of this Schedule.

• (2) Paragraph 1 of this Schedule shall apply where the Secretary of State has made an order under section 24 or section 26 of the Act of 1949 by virtue of the preceding provisions of this Part of this Schedule, or has under consideration the making of any such order, as it applies where the Secretary of State has confirmed an order authorising the Authority to acquire land in Great Britain com-pulsorily or, as the case may be, where the Authority proposes to acquire land in Northern Ireland compulsorily ; and except as provided by that paragraph section 29 of that Act (powers of entry) shall not apply in relation to any such order under the said section 24 or 26.

• (3) Paragraph 2 of this Schedule shall apply where the Secretary of State gives a direction under section 26 of the Act of 1949 by virtue of the preceding provisions of this Part of this Schedule, being a direction the execution of which will involve the displacement of persons residing in premises on the land to which the direction relates, as it applies where the Authority has acquired land for purposes connected with the discharge of its functions; and section 31 of that Act (displacements from land) shall not apply in relation to any such direction.

SCHEDULE 4

1

For any reference in Schedule 5 to the Roads Act (Northern Ireland) 1948 to an authority or a local authority or to the functions of a local authority as a road authority there shall be substituted a reference to the Civil Aviation Authority or to the functions of the Civil Aviation Authority as the case may require.

2

For any reference in Schedules 5 and 6 to the said Act of 1948 to the Ministry within the meaning of that Act there shall be substituted a reference to the Secretary of State.

3

• (1) Paragraph 2(2) of the said Schedule 5 shall be omitted.

• (2) In paragraph 2(3)(c) of the said Schedule 5, after the word " served", there shall be inserted the words "by post by means of the recorded delivery service".

4

For any reference in the said Schedules 5 and 6 to the said Act of 1948 there shall be substituted a reference to this Act.

5

• (1) For the purposes of a vesting order in respect of an estate in land, being an estate less than a fee simple, the said Schedule 5 shall have effect with such modifications as may be necessary to enable such an estate to be acquired by means of the vesting order and to enable compensation in respect thereof to be duly paid or discharged and (without prejudice to the generality of the preceding provisions of this sub-paragraph) shall have effect as if for the words in paragraph 5 of the said Schedule 5 from " A vesting order " to " under this Schedule " there were substituted the following words—