MINISTER’S SHARES IN S.P.A.N.Z.

Press, Volume CI, Issue 29848, 14 June 1962, Page 14

MINISTER’S SHARES IN S.P.A.N.Z.

Labour Alleges Motive For Loan To Airline

11-rom Our Parliamentary Reporter I

WELLINGTON, June 13.

The Opposition shook the Government tonight with a charge that members of the Cabinet had used their power for the benefit of their colleagues.

Mr S. A. Whitehead (Opposition, Nelson) said the Government had used its influence and power to make money available to help a private firm—South Pacific Airlines of New Zealand—to run in opposition to the publicly-owned National Airways Corporation.

The share register of S.P.A.N.Z. showed that the Minister of Works (Mr Goosman) had shares in the firm, the House was told.

Mr Goosman, with the leave of the House to make a personal explanation, rose, obviously surprised and disturbed bv the charges that the Opposition had directed against the Cabinet, and said he had bought 2000 5s shares in the company to help it along. He had since sold some

Mr Whitehead accused the Government of "giving in to the political pressure of Its friends,” both in abrogating the Nelson cotton mill pact and its dealings with South Pacific Airlines of New Zealand “Dealings with the airline are just another matter in which they have given in. The Minister of Civil Aviation (Mr McAlpine* in biatant interference with the Air Services Licensing Authority has instructed the National Airways Corporation to apply to that authority to cancel its rights on the Nelson-Christchurch route.” he said.

“This was being done to help a . private firm. S.P.A.N.Z., which was running in opposition to N.A.C. S.P.A.N.Z. was privately owned. Ansett Industries in Australia had a large interest. “This is an instance, perhaps, where Ansett is trying to get into New Zealand ”

S.P.A.N.Z. had been providing a service between Christchurch, Nelson, Palmerston North, and Auckland It had

gone to the authority and applied for a licence in the proper way N.A C. had applied for a licence over the NelsonChristchurch route at the same time. In its wisdom, the authority had granted a licence to both firms. "S.P.A.N.Z. was not prepared to accept this decision.” said Mr Whitehead "It appealed. The appeal authority (Judge Archer) said N.A.C. should cut down its services to three days a week.” Then, said Mr Whitehead, the M nister of Civil Aviation had issued instructions to N A C. and to T E A L, that

each were to help S.P.A.N.Z. at every opportunity they could. “The matter is very important.” said Mr Whitehead. “The Government should be giving a lead in matters of improvement of delinquency and standards. But the Government, which gave in to ‘.he political pressure of its political friends on the Nelson cotton mill, made a loan of £15.000 to this particular airline.

“It is helping not only its political friends, but also its political colleagues (Government murmurs.) “If you want to have a high standard in this Parliament, you should know that there are members of the Cabinet who are substantia! sha’eholders in SPA N Z. “It is correct and I feel very strongly about it. A Government in authority is making Government money available to a company to run in competition with a Government airline And it is prepared to tell NA C to get off a orofitsble route "There has been considerable controversy on this “There are not on’v shareholders in Nelson There are al«o shareholders in this representing it—who ere -te-cted ”S PA N Z was not prepared to accent the appeal authoritv's decision and wenl to the Minister

“The N.A C licence could not have been altered without the help of the Minister —and he gave it SPANZ wanted help to instruct NA C to get off this particular route

"1 was present at a meeting of the Nelson Progress League when the managingdirector said: ‘lf you don'* support us today the comnanv will go broke' “Captain Daniell said they wanted this particular route because it was so orofitsble that it wou’d enable them ’r carry on " Mr Whitehead said the Government had been using its authorffv on a ma’ter involving the Air Services Licensing Authority which had the status of a Supreme Court “Government actions in *“•« mat’°r are questionable When they start talking ’b n ut honesty in government they want to look at themselves.

"This action has not been conducive to better standards in the country"

Ashen-faced. Mr Goosman. who had been conferring with the Prime Min : ster (Mr Holyoake) rose to his feet as Mr Whitehead sat down. He asked leave of the House to make a personal explanation. The Deputy-Leader of the Opposition (Mr Hackett)

sprang to his feet on a point of order. "Some of us have actually seen the share register in which the Minister has 2000 shares in 5.P.A.N.Z.," said Mr Hackett. Government members shouted protests. Mr Goosman, still on his feet, aga.n appealed to the acting-speaker (Mr R. E Jack) for permission to make a statement. Mr Jack demanded order as the hubbub rose. Mr Jack explained that if one voice was raised in objection Mr Goosman would not be permitted to make his explanation. Mr Hackett: Can Mr Goodman not be the next speaker? Mr Jack: Yes, Mr Holyoake said that fact should, not influence the House. The House should not refuse a member the right to make a personal explanation. Mr P. G. Connolly (Opposition, Dunedin Central): 1 was refused one Mr W. A. Fox (Opposition. Miramar): If the honourable member makes an explanation would that preclude further debate? Mr Holyoake: It's prettytough when a personal attack was made. . . . Mr Fox: It's pretty tough when any member of the Government is suspected of using his personal position to advance his financial position Mr Jack, turning to Mr Goosman: Does Mr Goosman feel that anything was said which tends to impugn his integrity?

Mr Goosman: An accusa tion was made against mem. bers of the Cabinet I am involved.

The Leader of the Opposition (Mr Nash) then asked if it was possible for a member to make a personal explanation when he had the right to speak in the debate Mr Jack said it was Mr Jack then put the question and leave was granted to Mr Goosman to make an explanation Mr Goosman thanked the House for giving him the opportunity of answering a “very extravagant statement." “Mr Whitehead said members of the Cabinet were substantial shareholders in S.P.A.N Z and that is why the Government made certain decisions

“When this company was promoted I put £5OO into it to give some encouragement to a private enterprise company to help it along.” Mr N V Douglas (Opposition. Auckland Central): Charity.

Mr Goosman: That was 2000 5s shares. He added that it seemed to him that to suggest that tor £5OO the Government would do anything like that seemed to be “getting down about as far as you can get.” Opposition voices: I: mightn’t be much to you Mr Goosman: I have sold some of the shares but to clear the matter up if any member of the Opposition is prepared to pay the expenses on them. I am prepared to give them to him.