TEAL’S TASMAN SERVICES

Press, Volume XCVIII, Issue 28896, 16 May 1959, Page 12

TEAL’S TASMAN SERVICES

Government Determined To Retain Monopoly

(From Our Own Reporter)

WELLINGTON, May 15. The Government had no intention of sacrificing Tasman Empire Airways and “no surge of pressure from anywhere” would change that policy, the Minister of Civil Aviation (Mr Mathison) said tonight. He was replying to what he called “Christchurch and Auckland agitation” for more competition in air services into New Zealand. “Having long since lost any say in the running of her overseas shipping services, New Zealand will soon be a minor pawn in international aviation if those with purely parochial interests have their way,” Mr Mathison said. Cr. A. R. Guthrey, chairman of the Christchurch City Council airport committee, has urged that a regular Pan American Airways jet service, operating Christchurch-Sydney stage under charter to T.E.A.L. as part of a trans-Pacific route, would not affect T.E.A.L.’s normal trans-Tasman traffic. A “New Zealand Herald” editorial has accused the Government of “apparently doing everything possible to ensure that New Zealand is excluded from the general line of civil aviation expansion” to shelter the Australian airline Qantas. “The efforts of Cr. Guthrey and the ‘Herald’ ignore the nation’s interests and endanger their own,” said Mr Mathison. “If they are not aware of the economic facts of life about airline operation as it affects New Zealand, they have no right to publish such wild statements. If they are not so naive as they appear, they are misleading the public in a most improper way.”

“Cr. Guthrey must know that New Zealand no longer had any control of her overseas shipping services, and that successive Governments have tried to retain a stake in the country’s international air services through T.E.A.L.—half owned by Australia.” said Mr Mathison. “The Australian Government has no real need for T.E.A.L.. whose continued existence in New Zealand's interests depends on its trans-Tasman monopoly.” he said. “Give away that monopoly and you sound the death knell of T.E.A.L.” Cr Guthrey’s suggestion that the operation of large Pan American jets across the Tasmx'v under charter to T.E.A.L., woif not harm T.E.A.L.’s other tranw Tasman traffic was “just ridicF lons.” he said The Qantas Mq» bourne - Auckland chartc! arrangement with T.E.A.L. w'4 conditional on Qantas charter;?' T.E.A.L.’s new Electras tV equivalent utilisation on oth£ routes, with a specific provisidl that T.E.A.L. should not los£ New Zealand had not allowa Qantas any trans-Tasman sei vices from Sydney, even undjg charter “Let Pan-American AirwaV. into a Christchurch-Sydney seW vice and you let others in toojj said Mr Mathison ‘‘This woufi obviously mean the end of o-' trans-Tasman monopoly.” “Castles hi the Air” For New Zealand, the choiC would be the extinction < T.E.A.L., or buying out Austra lia’s share of the Electras anrunning at heavy losses becaus. of surplus capacity, high heads and excessive competitioS ‘The very people who no clamour for more freedom woul. be the first to demand an end tr subsidies.” said Mr Mathisor “The result would be the sam —the loss of all that T E.A.I means in employment, services and revenue, as well as of t’ ‘ last trace of New Zealand inr encc on her means of oversck transport. q “Luckily, this is all hyf» thetical. and I mention it only f show that Cr Guthrey is builc ( ing castles in the air. “The Government has no in tention whatever of sacrificing T E.A.L.. and no surge of pres sure from anywhere will chansthat policy. “If traffic in and out of Nd Zealand was to be doubled nc week, it would still be ‘peanut

for the major international operators, whose Pacific services already run at a loss. Dependence on T.E.A-L. “No overseas airline has yet shown any desire to operate into Christchurch. If such an airline applied to serve Christchurch to get trans-Tasman rights, it might well later wish to transfer them to Auckland. Christchurch would then be—as it is now—dependent on T.E.A.L., which Cr. Guthrey seems so ready to-let run down.” said Mr Mathison. The Government was not “sheltering Qantas,” although! the Australian Government did, >n seme special con-j r Mcolm ZeaAiWtcLJMi;