Civil Aviation Act 1978

5 Amendment of borrowing powers of Civil Aviation Authority and British Airways Board

(1) In section 8(5) of the 1971 Act (aggregate amount outstanding in respect of the initial debt of, and the principal of borrowings by, the Civil Aviation Authority not to exceed £75 million), for the words " £75 million " there shall be substituted the words " £125 million; but nothing in this subsection shall prevent the Authority from borrowing in excess of that amount for the purpose of paying oft the whole or part of the initial debt or any loan. ".

(2) Section 8 of the 1971 Act (borrowing powers of Civil Aviation Authority) shall be further amended as follows:—

(a) in subsection (1) (power to borrow temporarily with the consent of, or in accordance with a general authorisation given by, the Secretary of State), for the words from " with the consent" onwards there shall be substituted the words “borrow temporarily, by overdraft or otherwise, such sums in sterling as it may require for performing its functions—

(a) from the Secretary of State; or

(b) with the consent of, or in accordance with a general authorisation given by, the Secretary of State from another person ”; and

(b) in subsection (3) (power to borrow other than in sterling), for the words from " in sterling" onwards there shall be substituted the words “in sterling—

(a) by virtue of subsection (1)(b) above, or

(b) by virtue of subsection (2) above from the Commission of the European Communities or the European Investment Bank.”.

(3) The [1977 c. 13.] British Airways Board Act 1977 shall be amended as follows:—

(a) in section 9(1) (1imit of £700 million on aggregate of loans to and government investment in the Board), after the words "£700 million" there shall be added the words " or such greater sum, not exceeding £850 million, as the Secretary of State may from time to time by order specify ";

(b) in section 21(2) (orders of which a draft must be approved by resolution of each House of Parliament), at the end there shall be added the words " ; and no order shall be made under section 9(1) of this Act unless a draft of the order has been approved by a resolution of the House of Commons. ".