LOSS ON AIRWAYS.

Auckland Star, Volume LXIX, Issue 219, 16 September 1938, Page 5

LOSS ON AIRWAYS.

GOVERNMENT GRANT. PIONEERING SERVICE. OPPOSITION APPROVAL. (By Telegrapfc.— FartlaiMiitary Reporter.) WELLINGTON, this d»yT"~ The inclusion in the unauthorised, expenditure account of the Air Department of the turn of £22,600 as a grant to Union Airway*, Limited, to cover a proportion of it* louses from the inception of the company until March last prompted s member of the Opposition to, comment in the House of Representatives last night that it eeemed an enormous amount to pay, but subsequent dweussion showed unanimity on the point that the payment was quite justified, find the Opposition .unanimously supported it.

The Minister of Finance, Mr. Nash, explained that the loaees sustained by the company were much greater than the sum which was being granted, and payment wa« made for the service it had rendered in the development of the airways of the Dominion. Mr. W. J. Poison (National, Stratford) remarked that it would be a surprise to the country to know that Union Airways had made such losses because the/ general impression wa* that they were doing so well. "The country will be glad to know that the concern behind Union Airway* is entitled to credit for what they have done to develop our airways," he concluded.

"I don't think any service in the world has been run without attietance of that •ort," commented Mr. J. G. Coatee < National, Kaipara). "They run an excellent service." The Minister: Yea. Excellent and well run. Mr. Coatee: A splendid staff, good machine* and good ground organisation. The Minister: And only one accident. Mr. Coatee added that fortunately no passenger had been involved in accident. Almost erery country in the world paid subsidies to companies for inaugurating flying services of that description. They deserved encouragement and appreciation for the extraordinarily fine service they were, providing.

The Minister of Finance explained thut before the Government decided to pay the grant it investigated the procedure followed in moat other countries. It decided to pay Union Airwaye something more than half their losees, poeeibly flO or 70 per cent. He agreed with the member for Kaipara regarding the efficiency of the service. "I. have *een a few air services," concluded the Minister, "and no service with which I have been associated is better worked, hae better personnel or keeps time better than Union Airwaye of New Zealand. It is something to be proud of."