PARLIAMENT S.P.A.N.Z. MONOPOLY CONDEMNED

Press, Volume CI, Issue 29896, 9 August 1962, Page 14

PARLIAMENT S.P.A.N.Z. MONOPOLY CONDEMNED

Labour Promises Nelson Route To N.A.C. (New Zealand Press Association) WELLINGTON, August 8. The next Labour Government would amend legislation to restore to National Airways Corporation the “pre*eminent right” of running main internal air services if South Pacific Airlines New Zealand becomes a threat to it, Parliament was told today. This was stated by the former Labour Minister of Civil Aviation, Mr J. Mathison (Avon) when he was speaking to a motion condemning the present Minister (Mr McAlpine) for instructing NA.C. to seek approval to withdraw from the Christchurch-Nelson air run in favour of S.P.A.N.Z.

The motion put by Mr S A. Whitehead (Opposition. Nelson) read: "That this House deplores any attempt by a Minister of the Crown to use his authority or power as a Minister to direct any corporation associated with his portfolio to take action which is:— ‘‘(a) Likely to interfere with the jurisdiction of any properly constituted authority which is set up to deal with such matters. “(b) Likely to interfere with the efficient and economic running of such corporation. “(c) Likely to reduce the efficiency and safety of the service being given to the public and "(d> Likely to reduce the income of such corporation in favour of its competitor.” Mr Whitehead said that a decision made by the Air Services Licensing Authority about the route in 1961 would have stood had Mr McAlpine not interfered. Mr McAlpine had directed N A C to seek permission to withdraw. N AC. had not wanted to do so.

The chairman of the authority had said that DC3 aircraft were obsolescent, comparatively slow and nonpressurised. "The Minister’s action was designed to take away the income of NA.C.,” said Mr Whitehead. “It will reduce the income of NAC. by about £20.000 in favour of its competitor." ••arty Differences Mr R. D. Muldoon (Government. Tamaki) claimed the issue emphasised the difference between National and Labour. The Labour Party held private enterprise was all right only so long as it pioneered new services Then, the State took over The Government had made a £15.000 loan to S.P A.N Z only after the fullest investigation. The money had not yet been drawn on. Mr Muldoon said S P.A.N.Z faces dues which N.A.C. had not had to meet in its infancy. It did not get the same facilities as NA.C from tourist offices. S.P A N.Z. had begun a service to 112.000 persons, who, previously, had no air service at all.

N A.C. had gone on to the Christchurch-Nelson run only after SPA N Z pioneered it Mr McAlpine had told the Mayor of Nelson that he would not support N.A.C.’s withdrawal unless the Nelson people were in full agreement, Mr Muldoon said. The Nelson City Council had given its unanimous approval to NA C withdrawing Mr Muldoon said he could not think of a worn which was not unparliamentary to describe the suggestions that S.PA.NZ was not safe. Mr Whitehead: Try it outside sometime. Try it outside.

“Improper” Suggestion Mr Muldoon said it was improper to question the safety of the S.PA.NZ service

Mr McAlpine had not influenced the Air Services Licensing Authority. Mr Muldoon said “If anyone tried to influence it, it was the previous Minister of Civil Aviation who went before it represen’ine the Christchurch Labour Representation Committee for political ourposes ” Mr Muldoon moved an amendment 'lll3l this House deplores any attemnt by a member of this House to imply incorrectly that a minister of the Crown has made improper use of his authority, thereby attacking the basic principle of democracy " Ansett’s Holdings Mr W. W Freer (Opposition. Mt. Alberti said the largest shareholders in SPAN Z were people outside New Zealand “who hope to use it as a lever t get into our internal air services exactly the same way as in Aus'ralia

“The activities of Ansett Airways in Australia forced the primary producers of

New South Wales some years ago to form their own airline to compete with Ansett,” Mr Freer said. [The Ansett Transport group in Australia holds 49 per cent, of the shares in S.P.A.N.Z.]

Mr Freer said Mr McAlpine was looking after the investments of the shareholders in S.P A N Z National members had claimed for years that private enterprise was far more efficient, but now they were using their authority to ensure that travellers on this route had an inferior service The Air Services Licensing Authority had said that DC3 aircraft were obsolescent. Mr J. B. Gordon (Government, Clutha) said the Nelson-Christchurch section was a critical stage of a network service for the rural community of New Zealand He admitted modern aircraft were more comfortable, but if the weather was fine enough for tourists to see the magnificent scenery on the route, they would see it just as well from a DC3. If not. the aircraft would have to fly the coastal route, which was also very attractive. “Breach Of System"

Mr R. M. Maefarlane (Opposition, Christchurch Central) said that Mr McAlpine had made representations to a judicial body. “How widespread is this interference with judicial bodies?” he asked. The Public Service Association. he said, had stated that the Government had had the report on State services in its hands before the Gov-ernor-General ano was taking steps to prepare legislation. “That is a breach of the Parliamentary system.” he said. “Are there any secret forms of interference with judicial bodies that have not been brought to the light of day?”

Apparently the Canterbury Progress League, the Christchurch City Council and the South Island Publicity Association had lodged no objection over the Nelson air service. said Mr Macfarlane. but the chairman of the works committee of the council, a orominent officer of the Progress League, and a member of the executive of the Publicity Association had protested “Quite a lot of people find if tbev are going to embarrass the Government then they remain silent.” he said. “The Canterbury Progress League, when the Labour Government was in office, did not hesitate to take steps to embarrass the Government.”

Members of the National Party, had always claimed they stood tor freedom of choice, but. in this matter. pe>>ple had had freedom of -hoice. “at least on certain days of the week,” Mr Macfarlane said.

“Die people of Christchurch have had no opportunity to make any representations in this matter. Mr Mathison spoke for many more thousands of people than either the Progress League or rhe Chamber of Commerce.” said Mr Macfarlane. Mr N V Douglas (Opposi•ion. Auckland Central) said that though Mr McAlpine's chief duty was to safeguard State assets, he had used his authority to seek a decision that undermined the N.A.C service Regular Checks Mr P B. Allen (Government. Bay of Plenty! said the private airline was subject to periodical checks by Civil Aviation Administration staff There was no doubt that its aircraft flew in accordance with the rules laid down by he department. Both the pressurised Friendships and DC3 S were capable of “getting you there" under the regulations.

Mr C. G E. Harker (Government. Hawke’s Bay) said the authority's decision to allow N A.C. to withdraw from the Nelson-Christchurch

run had saved the position for country areas. Mr Mathison said he had never heard so much “balderdash” from Government benches as on this subject. He challenged Mr McAlpine to prove that the only objector in Christchurch to N.A.C.’s withdraw was Mr Mathison. “The Minister misquotes more than anyone else who has ever passed through this House.” he said. “He has misquoted from the licensing authority's decision and he puts words into Hansard which are not there. “He misquotes for political purposes and I don’t think there is anything lower in political life. “He should not .get away with it, but he does. We have to bring forward facts to correct him.” Charges Denied ’Mr McAlpine denied that he had influenced the Air Services Licensing Authority. “I deplore the actions of the Opposition in condemning the decision of the authority They would not criticise a Supreme Court decision,” he said. “The authority clearly stated that he was not influenced in any shape or form by the Government. “He said ‘the Minister was scrupulously correct in what he did.’ ” The motion was talked out at the tea adjournment at 5.30 p.m.