AIR MAIL.

Auckland Star, Volume LXX, Issue 210, 6 September 1939, Page 5

AIR MAIL.

TASMAN SERVICE.

CONDITIONS OF CONTRACT. CAPITAL APPORTIONMENT. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Questions concerning the transTasman air mail service were put to the Postmaster-General, Mr. Jones, when the vote for the Post and Telegraph Department was under consideration in the House of Representatives yesterday.

The Leader of the Opposition, Mr. Hamilton, inquired who was the controlling authority in New Zealand for the trans-Tasman service and what were the conditions of the contract as between New Zealand, Australia and the United Kingdom ? He noticed that £20,000 appeared on the estimates for the Vancouver mail service. What wag the reason ?

Mr. Jones replied that tlie all-up air mail scheme had temporarily gone by the board and the Vancouver service would be utilised. Therefore full subsidy would be available. Arrangements for the company to operate the transTasman service had not been finalised, but shares would be held in the proportions: New Zealand £3!>.000, Britain £38.000, Australia £23.000. This was based on the amount of mail matter conveyed to New Zealand.

Of the Xew Zealand capital 20 per cent would be held by the Government and 19 per cent by Union Airways, the Minister said, while in Australia the Qantas Company would .provide some of the capital, and in Britain the reorganised Airways Corporation would provide the capital.

So far as the postal sulisidy was concerned, Mr. Jones added. Xew Zealand's payments for mails would be £26,000 per annum when the service was inaugurated, anil there was also a £13.000 subsidy towards the Empire air mail scheme. One of tlie flying boats was in Xew Zealand and the other two were expected by November.

Mr. fJ. W. Forbes (National, Huru liui): Will the scheme be held tip?

The Minister: \o. The British Government will continue a restricted service to Australia and we will have to pay 1/0 per half-ounce. The existing rate of lid per half-ounce will be continued by steamer.