Planes Decision “Fair”

Press, Volume CVII, Issue 31380, 27 May 1967, Page 1

Planes Decision “Fair”

(N.Z. Preu A««ociation) WELLINGTON, May 26. Britain recognised that New Zealand made a “fair decision” when it decided to buy American Boeing 737 s instead of the British B.A.C. 1-lls as replacement aircraft for the. N.A.C. Viscount fleet, said the Minister of Overseas Trade (Mr Marshall).

Mr Marshall told the annual meeting of the Wellington division of the National Party that the British Government had been supplied with all the facts behind New Zealand’s decision to buy Boeings. "I am sure that while they are of course disappointed, they recognise that we have made a fair decision. “They recognise that in the vast extent of our mutual trade, this is a small fraction which does not affect the special position of New Zealand in the British marketer the equally special position of Britain in the New Zealand market,” said Mr Marshall.

Best Customer He emphasised that New Zealand was Britain’s best customer and said: “New Zealand buys more a head of population from. Britain than any other country in the world “New Zealand gives Britain greater preferences in the New Zealand market than any other country—averaging 19 per cent over other countries. “New Zealand pays Britain more every year for imports of goods and services than Britain pays New Zealandlast year it was £44 million more.” Mr Marshall said the BA.C. 1-lls would have cost £9,380,000 over 10 yean, or less than £1 million a year. “When it Is seen in proportion against the great volume of our trade with Britain, tt Is Insignificant,” he said. “Of course, we would have preferred to buy British and we made every effort by investigation and negotiation to do so. "But the Boeings will cost £7,060,000 £2,300,000 less than the British planes,” said Mr Marshall.

One of the problems in choosing a Viscount replacement was that the seating capacity of the British plane was 74, against 90 in the Boeing. “This meant we needed three American planes or four British planes,” said Mr Marshall.

Mr Marshall admitted that the timing of the Government’s decision had coincided with the British decision to apply for membership of the E.E.C.

“Clearly we would have deferred the decision if we could have done so—but the date the decision was made was the deadline for placing the order for delivery of the planes in time to begin flying when required in 1968. "To have delayed the decision would have lost us our place in the queue.” If this had happened, it would have cost'the Government an additional £150,000 and would have delayed the start of the new service by at least a year.