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forecast of congestion timing and was not therefore able to challenge this viaw.) They also see the uncertain political situation as having an unpredictable effect upon demand and thus the need for a replacement airport in the foreseeable future.
Clarification of Section VII of Earlier IMG Advice
7.
They advised that the options in Section VII of their original advice should be read as freeze/reduce charges in nominal (not real) terms. I accepted this simple clarification at the time but upon subsequently reading Section VIII of their advice I see references to increases in real terms and I suspect that they did originally mean "real" terms and were simply ill prepared to answer my question at the meeting. Perhar the written follow-up they have promised will correct this.
Liquor & Tobacco Concession Revenue
8.
I also raised the question on treatment of liquor and tobacco concession revenue by BAA and they confirmed that all such revenue was credited and thus brought into account in BAA Accounts,
Marginal Cost Definition etc.
9.
I left these items to be clarified in writing and to this end left a copy of the discussion paper previously forwarded to SES/DPS under cover of my (41) in this series dated 12th June, 1984.
Further Advice
10.
The foregoing should be taken only as a rough indication of the likely written response of DC Department of Transport. They promised to send an interia reply shortly to be followed by a more considered view once Foreim Office lawyers had advised on the matters raised,
Chief Treasury Accountant Civil Aviation Department 31 August, 1984
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