NATIONAL AIR SERVICES

Ashburton Guardian, Volume 66, Issue 59, 19 December 1945, Page 3

NATIONAL AIR SERVICES

GOVERNMENT CONSIDERS POLICY HIGH COURT DECISION (N.Z. Press Association— Copyright.) SYDNEY, Dec. 18. The Federal Cabinet this week will consider what it is going to do about legislation to nationalise the air services. Last week the High Court decided that the Commonwealth has no power to prevent private companies from operating.

Broadly, the judgement is under stood in Canberra to mean:—

(1) There is nothing in the Constitution which will prevent the Commonwealth Government from operating a system of Commonwealth airlines, if it wishes to do so. (2) There is nothing in the constitution which empowers the Commonwealth Government to tor hid private operators from conducting ai lines, if they desire to do so and are prepared to make the necessary arrangements.

These findings agree with forecasts made in Federal legal quarters even before the hearing began and the judgment is being accepted ill Federal official circles with less concern than the recent decision casting doubts on the validity of the Commonwealth social services. . ■ . Mr J. B. Cliifley (Prime Minister) declined to comment on the airlines judgment. The Canberra correspondent of the “Melbourne Herald” says there is reason to suppose that the judgment is something of a relief to the Government. The decision embodied m the National Airways Act was taken hastily by an incomplete assembly of the Federal Cabinet against strong recommendation of departmental advisers.’ Many sponsor,si of the proposal have since become lukewarm, and it has been an open secret they would welcome some signified avenue of retreat, should it be necessary in the final analysis.

Wide Powers Remain

At the same time the Commonwealth Government, in spite of the judgment, probably still has extremely wide powers l to proceed with its plans, should it wish to do so. Government circles have pointed out consistently that although the Act may be invalid, the operation of an airways system depends vitally on ancillary services, such as aerodromes, meteorological services and radio and other, navigational aids. These are aids, the use of which could be withheld from the private operator. Morever, under prevailing conditions the economic success of airways operation is in. the main contingent on either subsidies or mail contracts within tlie power ot the Commonwealth Government to grant or withdraw. It is suggested that, although Lie Commonwealth has been shown by the High Court ruling to lack power to exclude the private operator from any route by direct bam it still possesses all the power that is necessaiy to do so' by the imposition of economic sanctions. It does not follow that Cabinet will do this, and the recent lukewarm attitude of some Ministei s suggests that • an abandonment oi drastic modification of the airways plan will be considered.

Plans For Country Residents Plans by Australian National AirWays and other operators to bring half the country residents of Australia within two hours’ flying distance of their nearest capital were announced in Melbourne to-day by the managing director of Australian National Airways (Captain Ivan Holyman). In the meantime it is expected in Canberra that the Government will go ahead with the establishment of its own air services. Cabinet is considering legal opinion on the High Court decision on Friday, declaring illegal the monopolies provisions of the Airlines Act. A view shared by several Ministers is that the Government, while bowing to the High Court verdict that privately owned airlines could not he excluded, should launch Government-owned services. Captain Holyman said that withdrawal of air-mail subsidies, would make no difference to the plans, of Australian National Airways for expansion in the post-war period. In addition to bringiang 50 per cent, of the people within two hours of their capitals, 30 per cent, of the remainder will be brought within four hours and the balance within eight hours.