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Sir Basil Smallpeice, (18 September 1906 – 12 July 1992) was an English accountant and businessman, who served as a director of several companies, including the state-owned airline
British Overseas Airways Corporation British Overseas Airways Corporation (BOAC) was the United Kingdom, British state-owned national airline created in 1939 by the merger of Imperial Airways and British Airways Ltd. It continued operating overseas services throughout World War II ...
(BOAC), the shipping company
Cunard The Cunard Line ( ) is a British shipping and an international cruise line based at Carnival House at Southampton, England, operated by Carnival UK and owned by Carnival Corporation & plc. Since 2011, Cunard and its four ships have been r ...
and the mining-based conglomerate
Lonrho Lonrho is a London-based conglomerate that was established in 1998 as Lonrho Africa plc. It is engaged in multiple business sectors in Africa, mainly agribusiness, infrastructure, transport, hospitality and support services. History Lonrho ...
. Smallpeice, as financial comptroller and later, managing director, was one of the board of BOAC who was instrumental in purchasing and introducing jet powered aircraft into passenger service. He was responsible for the purchase of the
de Havilland Comet The de Havilland DH.106 Comet is the world's first commercial jet airliner. Developed and manufactured by de Havilland in the United Kingdom, the Comet 1 prototype first flew in 1949. It features an aerodynamically clean design with four ...
, the
Boeing 707 The Boeing 707 is an early American long-range Narrow-body aircraft, narrow-body airliner, the first jetliner developed and produced by Boeing Commercial Airplanes. Developed from the Boeing 367-80 prototype, the initial first flew on Decembe ...
and the
Vickers VC10 The Vickers VC10 is a retired mid-sized, narrow-body long-range British jet airliner designed and built by Vickers-Armstrongs (Aircraft) Ltd and first flown at Brooklands, Surrey, in 1962. The VC10 is often compared to the larger Soviet Ily ...
. His time at BOAC included the introduction of the Comet 1, the subsequent Comet disasters where metal fatigue caused the in-flight destruction of three aircraft, with a loss of 99 passengers and crew, the re-introduction of the Comet 4 and the inauguration of the first jet-powered transatlantic services in October 1958. He would later be instrumental in the purchase of the Boeing 707, which introduced the first by-pass turbofan engine, the
Rolls-Royce Conway The Rolls-Royce RB.80 Conway was the first turbofan jet engine to enter service. Development started at Rolls-Royce Limited, Rolls-Royce in the 1940s, but the design was used only briefly, in the late 1950s and early 1960s, before other turbof ...
into passenger service. He left BOAC along with his chairman Matthew Slattery, over disagreements with the Government concerning financial support in return for purchasing the Vickers VC10. He moved to Cunard as a director and then chairman, where he was responsible for radically altering the passenger and freight operations of the business; on the passenger side of the business, he cut massive losses by selling the '' Queen Mary'' and ''
Queen Elizabeth Queen Elizabeth, Queen Elisabeth or Elizabeth the Queen may refer to: Queens regnant * Elizabeth I (1533–1603; ), Queen of England and Ireland * Elizabeth II (1926–2022; ), Queen of the United Kingdom and other Commonwealth realms * Queen B ...
'' liners, then oversaw the radical re-design of the replacement liner the ''
Queen Elizabeth 2 ''Queen Elizabeth 2'' (''QE2'') is a retired British ocean liner. Built for the Cunard Line, the ship was operated as a transatlantic liner and cruise ship from 1969 to 2008. She was laid up until converted into a floating hotel, operating sin ...
'', which was under construction when he took up his position with Cunard. The changes he oversaw allowed the ''Queen Elizabeth 2'' to become a profitable luxury liner for the company. His work on the freight size of the business included the containerisation of the business together with the amalgamation of smaller lines and the formation of joint ventures which would be needed to operate larger container ships. He was chairman of Cunard when the '' Atlantic Conveyor'' was ordered and launched as part of Cunard's contribution to the Atlantic Container Line joint-venture. His final major business appointment was as a non-executive director of Lonhro, where soon after he took office, he uncovered illicit payments to
Duncan Sandys Duncan Edwin Duncan-Sandys, Baron Duncan-Sandys (; 24 January 1908 – 26 November 1987), was a British politician and minister in successive Conservative governments in the 1950s and 1960s. He was a son-in-law of Winston Churchill and played a ...
and further impropriety undertaken by chief executive
Tiny Rowland Roland Walter "Tiny" Rowland (; 27 November 1917 – 25 July 1998) was a British businessman, corporate raider and the chief executive of the Lonrho conglomerate from 1962 to 1993. He gained fame from a number of high-profile takeover bids, in p ...
, who had committed company funds to projects without the agreement of the board and granted share options to other sympathetic board members. Smallpeice and seven fellow directors attempted to remove Rowlands from office on the grounds of his behaviour, but he managed to out-manoeuvre them by obtaining a temporary injunction preventing his removal. The Prime Minister Edward Heath considered Rowland's behaviour to be "the unacceptable face of capitalism" and despite support for Smallpeice and his fellow directors in the press and in the city, where they were dubbed "the straight eight", they all resigned at a subsequent extraordinary general meeting later in 1973. Smallpeice also held a post as an administrative advisor to the household of
Queen Elizabeth II Elizabeth II (Elizabeth Alexandra Mary; 21 April 19268 September 2022) was Queen of the United Kingdom and other Commonwealth realms from 6 February 1952 until Death and state funeral of Elizabeth II, her death in 2022. ...
. He became well known and trusted by the Queen as a result of his work with BOAC organising flights and aircraft for the royal family, including the flight which took Princess Elizabeth to Kenya at the end of January 1952 and returned her as Queen several days later.


Early life

Smallpeice was born in
Rio de Janeiro Rio de Janeiro, or simply Rio, is the capital of the Rio de Janeiro (state), state of Rio de Janeiro. It is the List of cities in Brazil by population, second-most-populous city in Brazil (after São Paulo) and the Largest cities in the America ...
, Brazil, on 18 September 1906. His father was Herbert Charles Smallpeice and his mother was Georgina Ruth Smallpeice (née Rust). Herbert Smallpeice was a senior clerk with the London and River Plate Bank, a British bank which conducted business in South America. Basil contracted
malaria Malaria is a Mosquito-borne disease, mosquito-borne infectious disease that affects vertebrates and ''Anopheles'' mosquitoes. Human malaria causes Signs and symptoms, symptoms that typically include fever, Fatigue (medical), fatigue, vomitin ...
whilst in South America and was returned to Britain. He was privately schooled whilst in Britain, initially at Hurstpierpoint College, then at
Shrewsbury School Shrewsbury School is a Public school (United Kingdom), public school in Shrewsbury. Founded in 1552 by Edward VI by royal charter, to replace the town's Saxon collegiate foundations which were disestablished in the sixteenth century, Shrewsb ...
, before joining Bullimore and Co., an
accountancy Accounting, also known as accountancy, is the process of recording and processing information about economic entities, such as businesses and corporations. Accounting measures the results of an organization's economic activities and conveys ...
firm based in
London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
and
Norwich Norwich () is a cathedral city and district of the county of Norfolk, England, of which it is the county town. It lies by the River Wensum, about north-east of London, north of Ipswich and east of Peterborough. The population of the Norwich ...
, as an
articled clerk Articled clerk is a title used in Commonwealth countries for one who is studying to be an accountant or a lawyer. In doing so, they are put under the supervision of someone already in the profession, now usually for two years, but previously three ...
. Smallpeice qualified as an accountant in 1930, and undertook the
University of London The University of London (UoL; abbreviated as Lond or more rarely Londin in Post-nominal letters, post-nominals) is a collegiate university, federal Public university, public research university located in London, England, United Kingdom. The ...
Bachelor of Commerce A Bachelor of Commerce (BCom or B Com) is an undergraduate degree in commerce, accounting, mathematics, economics, and management-related subjects. The degree is mainly offered in Commonwealth nations. Structure Bachelor of Commerce The Bac ...
degree whilst training.


Business career

Smallpeice was initially employed by
The Hoover Company The Hoover Company is a home appliance company founded in Ohio, United States, in 1908. It also established a major base in the United Kingdom, where it dominated the electric vacuum cleaner industry during most of the 20th century, to the point ...
from 1931 to 1937 as an accountant and assistant secretary, before moving to
Royal Doulton Royal Doulton is an English ceramic and home accessories manufacturer that was founded in 1815. Operating originally in Vauxhall, London, and later moving to Lambeth, in 1882 it opened a factory in Burslem, Stoke-on-Trent, in the centre of Engl ...
as their chief accountant and secretary, where he stayed until 1948. He served as acting managing director during
World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
when Royal Doulton's managing director, retired
Royal Navy The Royal Navy (RN) is the naval warfare force of the United Kingdom. It is a component of His Majesty's Naval Service, and its officers hold their commissions from the King of the United Kingdom, King. Although warships were used by Kingdom ...
officer Basil Green, returned to active service. Royal Doulton was covered by an essential work order and Smallpeice's role considered a
reserved occupation A reserved occupation (also known as essential services) is an occupation considered important enough to a country that those serving in such occupations are exempt or forbidden from military service. In a total war, such as the Second World War, ...
, restricting him from active military service, though he was permitted to serve with the
Home Guard Home guard is a title given to various military organizations at various times, with the implication of an emergency or reserve force raised for local defense. The term "home guard" was first officially used in the American Civil War, starting ...
. Basil Green's short return during the
Phoney War The Phoney War (; ; ) was an eight-month period at the outset of World War II during which there were virtually no Allied military land operations on the Western Front from roughly September 1939 to May 1940. World War II began on 3 Septembe ...
of 1939 allowed Smallpeice to take up a position with
HM Treasury His Majesty's Treasury (HM Treasury or HMT), and informally referred to as the Treasury, is the Government of the United Kingdom’s economic and finance ministry. The Treasury is responsible for public spending, financial services policy, Tax ...
, working with the Organisation and Methods Division, but Green was again recalled to active service when Germany invaded the
Low Countries The Low Countries (; ), historically also known as the Netherlands (), is a coastal lowland region in Northwestern Europe forming the lower Drainage basin, basin of the Rhine–Meuse–Scheldt delta and consisting today of the three modern "Bene ...
, with Smallpeice returning to Doulton's. He and like-minded accountants in the same position would spend much of their spare time during the war writing papers on accountancy, taxation and management, with one paper, entitled ''"The Future of Auditing"'' provoking a strong response amongst
Institute of Chartered Accountants in England and Wales The Institute of Chartered Accountants in England and Wales (ICAEW) is a professional membership organisation that promotes, develops and supports chartered accountants and students around the world. As of December 2024, it has over 210,000 memb ...
(ICAEW) members when it was published in their journal, '' The Accountant'' in 1941. This would lead to the formation of the Taxation and Financial Relations Committee at the ICAEW in 1942, and Smallpeice would be one of the first members to join that committee. He would join the board of the Office Management Association prior to that. Smallpeice, with support from E. H. Carr who was then assistant editor of ''
The Times ''The Times'' is a British Newspaper#Daily, daily Newspaper#National, national newspaper based in London. It began in 1785 under the title ''The Daily Universal Register'', adopting its modern name on 1 January 1788. ''The Times'' and its si ...
,'' promoted the idea of employers deducting
income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...
from wages and passing it to Government directly rather than waiting for employees to do so at the end of the financial year. He introduced this idea to
Paul Chambers Paul Laurence Dunbar Chambers Jr. (April 22, 1935 – January 4, 1969) was an American jazz double bassist. A fixture of rhythm sections during the 1950s and 1960s, he has become one of the most widely-known jazz bassists of the hard bop er ...
, then on the board of the
Inland Revenue The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation ta ...
. The idea, which became the
PAYE A pay-as-you-earn tax (PAYE), or pay-as-you-go (PAYG) is a withholding of taxes on income payments to employees. Amounts withheld are treated as advance payments of income tax due. They are refundable to the extent they exceed tax as determined ...
system, would be tested in 1940–1941 and introduced permanently in 1944. The system vastly simplified and increased tax collection during the latter stages of World War II, when Britain was in desperate need of funds. Smallpeice would, whilst working at Doulton's, involve himself further in the ICAEW, promoting rule changes which would allow chartered accountants working in industry to sit on the ICAEW council, and being eligible to be Fellows of the institute. This would lead to him serving on the ICAEW council from 1948 to 1957.


British Transport Commission

Smallpeice left Doulton's in 1948 when it became clear he wouldn't be offered a board position with the company, and moved to join fellow accountant Reginald Wilson at the state owned
British Transport Commission The British Transport Commission (BTC) was created by Clement Attlee's post-war Labour government as a part of its nationalisation programme, to oversee railways, canals and road freight transport in Great Britain (Northern Ireland had the s ...
(BTC). Wilson, as
comptroller A comptroller (pronounced either the same as ''controller'' or as ) is a management-level position responsible for supervising the quality of accountancy, accounting and financial reporting of an organization. A financial comptroller is a senior- ...
, offered Smallpeice the role of Director of Costs and Statistics, but within two years, Smallpeice grew to realise that the business, with 600,000 staff, was effectively unmanageable without support from government and he began to assess his options elsewhere. He spoke to
Harold Howitt Sir Harold Gibson Howitt (5 October 1886 – 30 November 1969) was an English accountant who had a distinguished military career during the First World War and who undertook a long series of important public service commissions. Notable among th ...
when he was thinking of leaving the BTC and was informed that Miles Thomas needed an experienced accountant to institute strict financial controls at BOAC. Smallpeice would turn down the role initially, fearing BOAC (also state owned) would be similar to the BTC in terms of culture and manageability. Howitt pressed Smallpeice to reconsider and following a meeting a few days with Miles Thomas and he accepted the position at BOAC, which was tailored to the role he and Miles Thomas desired he have within the company.


BOAC

Smallpeice formally joined BOAC on 1 January 1950, taking the title and role of financial comptroller. The title reflected his intention to provide useful financial information to managers within the company, allowing them to take informed decisions, rather than dictating what the company would be doing from head office. The financial comptroller position became a board position in 1953, and accordingly Smallpeice was appointed to the board. He would then be promoted to the additional position of deputy chief executive in June 1954. He was instrumental in the decision to purchase the
de Havilland Comet The de Havilland DH.106 Comet is the world's first commercial jet airliner. Developed and manufactured by de Havilland in the United Kingdom, the Comet 1 prototype first flew in 1949. It features an aerodynamically clean design with four ...
, believing the efficiencies and benefits of jet powered military aircraft would be useful if replicated in a civilian environment, and recognising the outdated aircraft the airline would otherwise be left with. The early operation of the de Havilland Comet was characterised by the series of fatal crashes which would result in the resignation of Miles Thomas as chairman in 1955. The root cause was eventually attributed to
metal fatigue In materials science, fatigue is the initiation and propagation of cracks in a material due to cyclic loading. Once a fatigue crack has initiated, it grows a small amount with each loading cycle, typically producing striation (fatigue), striati ...
and no blame was attached to either Smallpeice or indeed to Thomas. Smallpeice would initially retain his position as financial comptroller under the incoming chairman, Gerard d'Erlanger, this would be a temporary arrangement and in 1956 Smallpeice was promoted to the role of chief executive, albeit with the title managing director. d'Erlanger and Smallpeice, who developed a particularly strong working relationship, were supporters of the British aviation industry, pursuing British built aircraft for BOAC. Smallpeice in particular had been a strong supporter of
de Havilland The de Havilland Aircraft Company Limited (pronounced , ) was a British aviation manufacturer established in late 1920 by Geoffrey de Havilland at Stag Lane Aerodrome Edgware on the outskirts of North London. Operations were later moved to ...
throughout the period of the Comet crashes and re-introduction to service, but concerns about the reintroduction of the Comet, delays with the Bristol Britannia and a lack of any other suitable British aircraft nearing production would force BOAC into purchasing the
Boeing 707 The Boeing 707 is an early American long-range Narrow-body aircraft, narrow-body airliner, the first jetliner developed and produced by Boeing Commercial Airplanes. Developed from the Boeing 367-80 prototype, the initial first flew on Decembe ...
aircraft. Smallpeice was instrumental in their purchase, discreetly arranging for BOAC staff to visit America and examine the
Boeing 367-80 The Boeing 367-80, also known as the Dash 80, is a retired American four-engined prototype jet aircraft by Boeing to demonstrate the advantages of jet propulsion for commercial aviation. It served as basis for the design of the KC-135 tanker a ...
prototype before persuading the government to authorise the purchase, as was necessary at the time. The purchase of the Boeing 707 aircraft would be followed by several orders for
Vickers Vickers was a British engineering company that existed from 1828 until 1999. It was formed in Sheffield as a steel foundry by Edward Vickers and his father-in-law, and soon became famous for casting church bells. The company went public in 18 ...
competing design, the
VC10 The Vickers VC10 is a retired mid-sized, narrow-body long-range British jet airliner designed and built by Vickers-Armstrongs, Vickers-Armstrongs (Aircraft) Ltd and first flown at Brooklands, Surrey, in 1962. The VC10 is often compared to th ...
, with BOAC having ordered 35 VC10 aircraft by 1959 and an additional ten (bringing the total on order to 45) by 1961. Payments for these aircraft together with a downturn in transatlantic traffic, increased competition on the transatlantic route by additional carriers equipped with jet aircraft, and a whole host of additional costs associated with the Vickers VC10 and Bristol Britannia purchase would result in BOAC becoming extremely unprofitable from late 1961 onwards. It was during this period that Smallpeice began to work with Sir Edward Fielden, Captain of the Queen's Flight on arrangements to fly
Queen Elizabeth II Elizabeth II (Elizabeth Alexandra Mary; 21 April 19268 September 2022) was Queen of the United Kingdom and other Commonwealth realms from 6 February 1952 until Death and state funeral of Elizabeth II, her death in 2022. ...
,
Prince Philip, Duke of Edinburgh Prince Philip, Duke of Edinburgh (born Prince Philip of Greece and Denmark, later Philip Mountbatten; 10 June 19219 April 2021), was the husband of Queen Elizabeth II. As such, he was the consort of the British monarch from h ...
and other members of the royal family overseas on BOAC aircraft. Smallpeice, who generally took personal responsibility for the organisation of these flights, was recognised for this work in 1961 when he was appointed a
Knight Commander of the Royal Victorian Order The Royal Victorian Order () is a dynastic order of knighthood established in 1896 by Queen Victoria. It recognises distinguished personal service to the monarch, members of the royal family, or to any viceroy or senior representative of the m ...
. d'Erlanger retired as chairman in 1960, and was succeeded by Matthew Slattery. Smallpeice remained as managing director, and together Slattery and Smallpeice set about cutting costs at the airline as the financial performance continued to deteriorate. BOAC would incur significant losses in 1961 and 1962 amidst decreasing passenger loadings, comparatively high maintenance costs and ongoing payments to Vickers for the VC10 orders. The financial situation was further endangered by competition from independent British operation Cunard Eagle Airways, a joint venture between British Eagle and
Cunard The Cunard Line ( ) is a British shipping and an international cruise line based at Carnival House at Southampton, England, operated by Carnival UK and owned by Carnival Corporation & plc. Since 2011, Cunard and its four ships have been r ...
. The venture had ordered two Boeing 707 aircraft in March 1961, intending to recapture Cunard's transatlantic market which was traditionally the preserve of their ocean liners, the and . They received permission to operate services between London and New York in June 1961, though this was swiftly withdrawn by the
Minister of Aviation The Ministry of Aviation was a department of the United Kingdom government established in 1959. Its responsibilities included the regulation of civil aviation and the supply of military aircraft, which it took on from the Ministry of Supply. ...
when BOAC appealed the decision. Smallpeice, concerned about the additional competition and unable to obtain additional Boeing 707 aircraft any other way, began talks in April 1962 to merge BOAC's North Atlantic operations with those of Cunard Eagle. Agreement was reached in early June 1962 on ownership percentages, and the newly formed company, BOAC-Cunard, began operations later that month. The new airline would operate all the transatlantic services of BOAC and Cunard Eagle from 1962 to 1966. Smallpeice served as managing director of the joint venture, in addition to his role as managing director of BOAC itself. The downturn in the aviation sector and ongoing disagreements between
Julian Amery Harold Julian Amery, Baron Amery of Lustleigh, (27 March 1919 – 3 September 1996) was a British Conservative Party politician, who served as a Member of Parliament (MP) for 39 of the 42 years between 1950 and 1992. He was appointed to the ...
, the new Minister of Aviation and BOAC concerning writing off debt incurred buying and troubleshooting new British aircraft resulted in a further deterioration in relations between the airline and government. Amery commissioned an independent report into the financial performance of BOAC, undertaken by John Corbett. The ongoing disagreement about the funding arrangements for BOAC and the need for new Vickers VC10 aircraft would eventually be resolved in late 1963, when Slattery formally retired as chairman, though this was widely seen as a resignation; Slattery commented in 1964 that he had effectively been sacked.
Giles Guthrie Sir Giles Connop McEachern Guthrie, 2nd Baronet, (21 March 1916 – 31 December 1979) was an English aviator, merchant banker and later, an airline industry executive, serving as the chairman and chief executive of the state owned airline Brit ...
, a respected aviator, merchant banker and director of
British European Airways British European Airways (BEA), formally British European Airways Corporation, was a British airline which existed from 1946 until 1974. BEA operated to Europe, North Africa and the Middle East from airports around the United Kingdom. The ...
who would take over from Slattery as chairman and chief executive, also intended to perform some of the managing director's roles, making Smallpeice's position essentially redundant; Smallpeice was asked to resign by Amery, leaving the company late in 1963 to facilitate Guthrie's new management structure. Smallpeice, like Slattery, considered that had effectively been sacked. The concerns Slattery and Smallpeice expressed about the financial arrangements of the company and Vickers VC10 purchases would be vindicated when Guthrie was able to have the government write off the outstanding debt, inject additional cash into the company, and permit the purchase of a smaller number of Vickers VC10 aircraft. The Corbett report was never made public; neither Slattery, Smallpeice nor Guthrie are believed to have been given access to the full report. Smallpeice and Slattery were praised by Guthrie in 1964, when the airline reported a profit for the 1963–1964 financial year, commenting that he was unable to take credit for the performance and this his predecessors were largely responsible for the improved financial performance of the airline.


Cunard

Smallpeice, upon leaving BOAC, spoke with his friend Kim Cobbold, the
Lord Chamberlain The Lord Chamberlain of the Household is the most senior officer of the Royal Households of the United Kingdom, Royal Household of the United Kingdom, supervising the departments which support and provide advice to the Monarchy of the United Ki ...
about future career possibilities. He was advised to take a holiday and put his departure from BOAC behind him, whilst Cobbold would investigate what positions may be available for Smallpeice. Cunard Line, already familiar with Smallpeice as a result of the BOAC-Cunard venture, were quick to approach him. Sir John Brocklebank offered Smallpeice a board position with the shipping line in December 1963, during Smallpeice's last meeting as a BOAC representative on the BOAC-Cunard board. Smallpeice initially refused to commit to the position, instead taking a three-month cruise from
Hong Kong Hong Kong)., Legally Hong Kong, China in international treaties and organizations. is a special administrative region of China. With 7.5 million residents in a territory, Hong Kong is the fourth most densely populated region in the wor ...
to London (with P&O). Smallpeice arrived back in London during March 1964 and returned to meet with Cobbold, informing him of the offer with Cunard, a position which initially would be the management of Cunard's London operation, with a trip to Cunard's headquarters in
Liverpool Liverpool is a port City status in the United Kingdom, city and metropolitan borough in Merseyside, England. It is situated on the eastern side of the River Mersey, Mersey Estuary, near the Irish Sea, north-west of London. With a population ...
once a week for management and board meetings. Cobbold also had a job offer for Smallpeice, an accountancy position within the Queen's Household, a position formally to be titled ''Administrative Adviser''. This position could be combined with the work at Cunard quite comfortably, but would preclude taking further directorships in the short term, as a result, Smallpeice was forced to turn down non-executive director positions with Charterhouse Group and Rugby Portland Cement. Smallpeice joined Cunard and was appointed to the board in April 1964. Bill Donald, the deputy chairman of Cunard, retired in June 1965 and Smallpeice was appointed as his replacement, but this was to be a short term position. John Brocklebank stood down on 8 November 1965 on health grounds, and Smallpeice was promoted to chairman and chief executive by his colleagues on the board. Cunard was in significant financial difficulties when Smallpeice joined, and posted a loss of $7.2 million in 1965, losing money on the passenger ships and making profits on their shipping line. Smallpeice initially attempted to resolve the financial position of the company by embarking on a merger with another shipping line. Ocean Steamship Company had previously asked that they have first refusal on a merger with Cunard. Ocean Steamship brought P&O into the discussions, and a three-way merger at one point looked feasible, but neither party could see any benefit in a deal involving Cunard, and backed out of proposed deal. The National Union of Seamen's Strike of 1966 damaged the already fragile finances of Cunard, and left Smallpeice with few options. The company, by now in need of cash, was forced to sell its stake in BOAC-Cunard. Smallpeice then turned to strengthening the board and bringing in experts from outwith the company, inviting Stormont Mancroft, 2nd Baron Mancroft, Priscilla Buchan, John Wall and
Maxwell Joseph Sir Maxwell Joseph FRPSL (formerly ''Max'' Joseph) (31 May 1910, London – 22 September 1982, Kensington) was the founder of Grand Metropolitan, Grand Metropolitan plc, a large British hotel group. Career Educated at Pitman's Business School,
to join the board. Smallpeice, once the new Cunard board had been constituted, turned his attention to the new cruise ship being built for the company. The ship, codenamed Q4, had been proposed and planned under the auspices of his predecessor, John Brocklebank. However, with the ship now approaching completion and requiring fitting out, it would fall to Smallpeice and his board to appoint interior and exterior designers and approve design schemes for the new ship. Smallpeice, having assessed a report by the
Economist Intelligence Unit The Economist Intelligence Unit (EIU) is the research and analysis division of the Economist Group, providing forecasting and advisory services through research and analysis, such as monthly country reports, five-year country economic forecasts ...
, decided on significant alterations to the interior layout, abolishing the old three class layout and replacing it with a flexible layout which could be split into two classes for North Atlantic crossings and combined into a single class layout for cruising in the Caribbean. This new layout was expected to suit the tastes of American passengers, predicted to be the largest passenger group on the new liner. The existing cruise ships and were intended to remain in service until their replacement entered service, but a deterioration in the passenger market in 1967 resulted in the sale of the RMS Queen Mary, being sold to raise additional funds for the company at the end of the 1967 summer cruising season. The RMS Queen Elizabeth followed out of service in November 1968. The naming of Q4 presented a headache for Smallpeice, realising that he could not seek permission to call the ship the Queen Elizabeth II, as only Royal Navy battleships had been named after a reigning monarch. Smallpeice discussed the issue with the Queen's Private Secretary Sir Michael Adeane and it was agreed that they would recommend to Her Majesty that the ship be named ''Queen Elizabeth''. This was in keeping with normal Cunard practice of reusing previous ships names and didn't present any issues as the old and the new ships would not be in Cunard service at the same time.
Elizabeth II Elizabeth II (Elizabeth Alexandra Mary; 21 April 19268 September 2022) was Queen of the United Kingdom and other Commonwealth realms from 6 February 1952 until Death and state funeral of Elizabeth II, her death in 2022. ...
launched the ship on 20 September 1967 but surprised and delighted Smallpeice and the invited guests when she named the ship ''Queen Elizabeth the Second''. Smallpeice believed using the style Queen Elizabeth II wasn't entirely appropriate, it being the designation of the sovereign, and sought permission to use an Arabic 2 in place of Roman numerals. The shipping line operations of Cunard didn't escape review by Smallpeice. He was already familiar with the containerisation of freight prior to taking up his position with Cunard, but spent time during 1966 to visit the Sea-Land Service container terminal at
Port Newark A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Hamburg, Manche ...
and further familiarised himself with the use of containers in marine traffic.
Container ship A container ship (also called boxship or spelled containership) is a cargo ship that carries all of its load in truck-size intermodal containers, in a technique called containerization. Container ships are a common means of commercial intermodal ...
s were considered too large for the traditional British shipping lines, including Cunard and their subsidiaries to operate, so it would be necessary to form partnerships. Smallpeice initially held discussions in 1965 with the newly formed Overseas Containers group, which was focused on the UK to Australia and Far East routes, about Cunard's Port Line subsidiary and Ronald Vestey's
Blue Star Line The Blue Star Line was a Merchant Navy (United Kingdom), British passenger and cargo shipping company formed in 1911, being in operation until 1998. Formation Blue Star Line was formed as an initiative by the Vestey Brothers, a Liverpool-ba ...
joining British & Commonwealth Shipping,
Furness Withy Furness Withy was a major United Kingdom, British transport business. It was listed on the London Stock Exchange. History The company was founded by Christopher Furness, 1st Baron Furness, Christopher Furness and Henry Withy (1852–1922) in 18 ...
, P&O and the Ocean Steamship Company in the joint venture. Their approaches were rebuffed, and it was quickly decided that Cunard and Blue Star Line should try to form a rival group, which would be called Associated Container Transportation. The venture was formed in late 1965 and early 1966, with the first board meeting taking place on 12 January 1966. Cunard's Port Line and Vestey's Blue Star Line were joined by Ben Line,
Ellerman Lines Ellerman Lines was a UK cargo and passenger shipping company that operated from the late nineteenth century and into the twentieth century. It was founded in the late 19th century, and continued to expand by acquiring smaller shipping lines u ...
and Harrison Line in the venture. Alexander Hull from Ellerman Lines was the inaugural chairman, but following his death in April 1967, Smallpeice took over as chairman of Associated Container Transportation. The Australian shipping interests of Cunard, Blue Star Line and Ellerman Lines were subsequently formed into a separate operating company, Associated Container Transportation (Australia), and following work by Smallpeice, the Australian government allowed the state owned
Australian National Line Australian National Line (ANL) is a coastal shipping line established by the Government of Australia in 1956. It was sold in 1998 to CMA CGM. History Australian National Line was formed on 1 October 1956 as the Australian Coastal Shipping C ...
to form a partnership with Associated Container Transportation (Australia). The group would go on to form the Pacific America Container Express which operated services between Australia and the east coast of North America via the
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. Smallpeice would serve as chairman of the Associated Container Transportation (Australia)/Australian National Line partnership from its creation in 1969 and as chairman of Associated Container Transportation (Australia) from 1971, retiring from both positions in February 1979. The process was repeated for Cunard's North Atlantic shipping interests. They applied and were accepted into the Atlantic Container Line in December 1966, joining with the founding companies
Wallenius Lines Wallenius Lines is a privately owned Swedish shipping company. The company was founded in 1934 by Olof Wallenius. Wallenius Lines is an investor and active owner within the global shipping industry, specifically the international car and roll-o ...
,
Swedish American Line Swedish American Line (, abbr. SAL) was a Swedish passenger shipping line. It was founded in December 1914 under the name Rederiaktiebolaget Sverige-Nordamerika and began ocean liner service from Gothenburg to New York City, New York in 1915. ...
, Swedish Transatlantic Line and
Holland America Line Holland America Line N.V. (HAL) is an American cruise line operating as a subsidiary of Carnival Corporation & plc. Founded in 1873 in Rotterdam, Netherlands as the Netherlands-America Steamship Company (NASM), the company operated regular trans ...
. Cunard joined at the same time as
Compagnie Générale Transatlantique The Compagnie Générale Transatlantique (CGT, and commonly named "Transat"), typically known overseas as the French Line, was a French shipping company. Established in 1855 by the brothers Émile and Issac Péreire under the name ''Compagnie ...
(French Line). Cunard inherited planning work and ship designs when they joined with Atlantic Container Line group, and as part of their application to join, Cunard would build two ships for the ACL fleet, the and the . The ''Atlantic Conveyor'' would, in 1982, become the first British merchant ship to be lost to enemy action since World War II, after being requisitioned for use in the
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. The agreements to containerise Cunard's freight operations had returned the overall Cunard group to profitability, with the shipping line now profitable and the passenger ships losing money, a reversal of the situation Smallpeice had inherited in 1965. The company returned profits of £2 million in 1968 and £3 million in 1969 and the share price rose accordingly. The downturn in the economy and shipping industry in 1970 resulted in Cunard once again incurring a loss and a drop in the share price, resulting in the company becoming a takeover target. Smallpeice attempted to defend the company against a takeover, commissioning a report from
McKinsey & Company McKinsey & Company (informally McKinsey or McK) is an American multinational strategy and management consulting firm that offers professional services to corporations, governments, and other organizations. Founded in 1926 by James O. McKinse ...
on the future outlook of the company. This course of action would ultimately prove futile and Trafalgar House would launch a successful bid for the company, beginning on 30 June 1971. Smallpeice accepted an increased bid from Trafalgar House at the end of July, and would go on to preside over the last board meeting of Cunard as an independent company on 25 August 1971, 93 years after its incorporation.


Lonrho

Smallpeice transferred to the Trafalgar House board, but stayed just five months before leaving in January 1972. Trafalgar House together with Blue Star Line and Ellerman Line asked that Smallpeice remain in his role as chairman of Associated Container Transportation (Australia) and the Australian government asked that he remain in his role as chairman of the Associated Container Transportation (Australia)/Australian Line partnership. Sir John Thomson, chairman of
Barclays Bank Barclays PLC (, occasionally ) is a British multinational universal bank, headquartered in London, England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services ...
approached Smallpeice in March 1972 about him joining the board of
Lonrho Lonrho is a London-based conglomerate that was established in 1998 as Lonrho Africa plc. It is engaged in multiple business sectors in Africa, mainly agribusiness, infrastructure, transport, hospitality and support services. History Lonrho ...
, which was in need of refinancing. The financial markets expected additional experienced company directors to be appointed to the board, resulting initially in Conservative politician and former cabinet minister
Duncan Sandys Duncan Edwin Duncan-Sandys, Baron Duncan-Sandys (; 24 January 1908 – 26 November 1987), was a British politician and minister in successive Conservative governments in the 1950s and 1960s. He was a son-in-law of Winston Churchill and played a ...
taking over as chairman of the company. Smallpeice, when at BOAC, had worked with Sandys when he was aviation minister and the two knew each other well. Sandys sought Smallpeice to join him on the board of Lonrho. Alan Ball the previous chairman became executive deputy chairman, with Smallpeice requesting a non-executive deputy chairman position, which was quickly agreed to. Sandys and Smallpeice were joined by a third new board member, the Conservative politician Edward du Cann and the new board constituted in March 1972. The board quickly become concerned at the behaviour of their chief executive
Tiny Rowland Roland Walter "Tiny" Rowland (; 27 November 1917 – 25 July 1998) was a British businessman, corporate raider and the chief executive of the Lonrho conglomerate from 1962 to 1993. He gained fame from a number of high-profile takeover bids, in p ...
who had agreed in principle to finance a sugar refinery in Sudan at a cost of £80 to £100 million, whilst the company was in the midst of refinancing itself. The board was able to reword the agreement and it became a feasibility study, recovering the situation but respite from a further crisis would prove to be short lived. The situation at Lonrho went from bad to worse during early 1973, when Peats, Lonrho's auditors, discovered payments totalling £44,000 made from a subsidiary company based in the Cayman Islands to Duncan Sandys. Sandys, believing that the payment had been authorised by the board returned in full the money he had received. The situation would deteriorate further, additional legal and financial irregularities were uncovered, leaving Smallpeice and the other directors to consider resignation. Smallpeice was informed, after consulting Nicholas Wilson, a partner with Slaughter and May that he and the other directors could leave themselves liable to legal action for Duty of care in English law, dereliction of duty. Counsel advised Smallpeice and the other directors that they should submit Lonrho to inspection by the Department of Trade and Industry (United Kingdom), Department of Trade and Industry, but in discussions with the Governor of the Bank of England, Sir Leslie O'Brien, Baron O'Brien of Lothbury, Leslie O'Brien, this course of action was recommended against. Smallpeice and seven of his fellow directors felt there was no other course of action left open to them but to ask Rowland to relinquish all executive appointments with Lonrho, but to allow him to remain on the board as a non-executive director. Rowland refused and the eight directors prepared to pass a motion at the first full board meeting, set for 18 April 1973, forcing Rowland to relinquish all of his executive appointments. Rowland, aware of the possibility, had obtained an interlocutory injunction from the High Court of Justice preventing the board from voting on his removal. Rowland then proceeded to take the eight directors to court, to permanently prevent them from being able to vote on his removal from the board, this case was lost by Rowland, but due to delays in the legal process, the final judgement was passed on 14 May, 17 days prior to the general meeting, and it was felt best to leave the composition of the board to a vote of shareholders. Rowland's 20% holding in Lonrho and further proxy votes would allow him to retain his position on the board and at the general meeting, Smallpeice and the seven fellow directors were voted off the board. The behaviour of Lonrho was described by the Prime Minister Edward Heath as ''"the unpleasant and unacceptable face of capitalism"'' in a House of Commons debate on 15 May 1973, and the company was eventually subject to an enquiry by Inspectors from the Department for Trade and Industry, which reported in 1976. Smallpeice and the seven other directors were dubbed ''"the straight eight"'' as a result of their honest and principled stance in contemporary newspaper coverage, but Smallpeice would find further employment impossible whilst the Lonrho investigation was carried out. The resulting investigation showed evidence of illicit payments being made to Duncan Sandys and Angus Ogilvy, bribery of African leaders and of Lonrho avoiding UN sanctions by trading with the white minority regime in Rhodesia, in violation of United Nations Security Council Resolution 216.


Other interests

Smallpeice served as a director of Martins Bank from 1965 to 1969 alongside Sir John Brocklebank, his predecessor as Cunard chairman, remaining with Martins until 1969 when the bank was incorporated into Barclays Bank. He served on the London local board of Martins Bank prior to his appointment on the main board, serving from to 1964 to 1965. Smallpeice would join the London local board of Barclays Bank after their takeover of Martins Bank, a position he held until 1973. He was involved throughout his career in professional bodies, in addition to his time on the council of the Institute of Chartered Accountants in England and Wales earlier in his career, from 1958 to 1961, he served on the council of the Chartered Institute of Logistics and Transport, Institute of Transport. Smallpeice then served on the council of the Chartered Management Institute, British Institute of Management from 1959 to 1964 and again from 1965 to 1975, during this period, he was also a member of the Government's Committee for Exports to the United States of America, serving from 1964 to 1966. He was promoted to chairman of the British Institute of Management, serving from 1970 to 1972, and then as vice president from 1972 onwards. His final industrial council appointment was as President of the British International Freight Association, Institute of Freight Forwarders from 1977 to 1978. Smallpeice joined John Corbett at accountancy firm Peat, Marwick, Mitchell & Co. in 1975, working as an air and sea transportation consultant. Peat, Marwick, Mitchell & Co. would merge with Klynveld Main Goerdeler to form KPMG in 1987. His role with BOAC would see him be appointed a liveryman of The Honourable Company of Air Pilots, The Guild of Air Pilots and Air Navigators in 1960 and joining the Air League. He succeeded Clive Hunting as chairman of the Air League in 1971 for a three-year term. He was a companion of the Royal Aeronautical Society from 1960 to 1975, and became a liveryman of The Worshipful Company of Coachmakers and Coach Harness Makers in 1961, as a livery company, they represent aircraft builders. Smallpeice remained on the boards of Associated Container Transportation (Australia) and the Associated Container Transportation (Australia)/Australian Line partnership until retiring in 1979. His final professional position would be his role as Administrative Adviser to the Queen's Household, from which he retired in 1980.


Personal life

Smallpeice married twice, firstly, he married Kathleen (Kay) Singleton in 1931. Kay was a school friend of Smallpeice's sister who was some four years younger than Basil. He also had a younger brother, who was five years younger. Kay was diagnosed with an illness of the blood in December 1968 and following a second bout of illness, passed away on 2 February 1973, following 41 years of marriage. He married for a second time on 2 November 1973 to Rita Burns, who had been his secretary at Cunard, and they remained married until Basil's death on 12 July 1992. Smallpeice was appointed a
Knight Commander of the Royal Victorian Order The Royal Victorian Order () is a dynastic order of knighthood established in 1896 by Queen Victoria. It recognises distinguished personal service to the monarch, members of the royal family, or to any viceroy or senior representative of the m ...
in 1961 for services to the sovereign, this was for his work in organising flights for the Queen and other members of the royal family whilst with BOAC. Smallpeice was also honoured by various other countries, and was made a member of the National Order of the Cedar by Lebanon in 1955. The United States honoured Smallpeice by giving him the Key to the City of San Francisco in 1959. He was also honoured with a Pioneers Award for his contributions to the development of container shipping by the Containerization Institute in New York during 1981. His interests outside of industry resulted in him serving as chairman of English-Speaking Union, The English Speaking Union of the Commonwealth from 1965 to 1968, succeeding Clive Baillieu, 1st Baron Baillieu, Lord Baillieu. He served his local communities as chairman of the Leatherhead New Theatre (Thorndike) Trust from 1966 to 1974 and after moving to Cobham, was President of the Friends of Cobham cottage hospital from 1987 and President of the Friends of St. George's Church, Esher, also from 1987. He was a member of the London clubs Athenaeum Club, London, Athenaeum and Boodle's, and of the Melbourne Club in Melbourne, Australia, and enjoyed golfing and gardening as recreation activities. Her Majesty The Queen was represented at Smallpeice's funeral by Lieutenant-Commander Sir Russell Wood, an Gentleman Usher, Extra Gentleman Usher in the Royal Household.


References

Notes Citations Bibliography * * * * * * * {{DEFAULTSORT:Smallpeice, Basil 1906 births 1992 deaths Knights Commander of the Royal Victorian Order Members of the British Royal Household Businesspeople awarded knighthoods English businesspeople in shipping English bankers English accountants British aviation pioneers British chairpersons of corporations British corporate directors Alumni of the University of London Barclays people People educated at Hurstpierpoint College People educated at Shrewsbury School People of the British Overseas Airways Corporation Businesspeople from Rio de Janeiro (city) 20th-century English businesspeople