MINISTER DEFENDS GOVT REJECTION OF B.A.C. 1-11

Press, Volume CVIII, Issue 31753, 9 August 1968, Page 20

MINISTER DEFENDS GOVT REJECTION OF B.A.C. 1-11

(New Zealand Press Association) WELLINGTON, August 8. The Minister of Civil Aviation (Mr Gordon) tonight forcefully defended the Government’s decision to buy three Boeing 737 short-haul jet aircraft as replacements for National Airways Corporation’s Viscount fleet—instead of four B.A.C. 1-lls from Britain.

He told Parliament that allegations by Dr A. M. Finlay (Lab., Waitakere) in the House on Wednesday night that the “die was cast against the B. from the outset” had been irresponsible.

The Minister claimed that Dr Finlay’s speech was damaging to New Zealand. Dr Finlay had told Parliament during the Budget debate that it was his opinion that during the negotiations N.A.C. had emphasised the best features of the Boeing 737 and the worst of the B.A.C. 1-11. He also accused the Government of not making a fair comparison between the two aircraft.

The Minister replied in an angry speech during the resumed Budget debate tonight that he had acknowledged that the B.A.C. 1-11 was a fine aeroplane at the time it was being considered. But he had withheld any

further comment on technical aspects because it would lead to criticism that would damage New Zealand’s cordial relationships with Britain. “Calamitous Speech” “1 regret that due to the calamitous speech in the House last evening I am now forced to give some of the technical details which were behind the ultimate decision taken in full knowledge of all the facts,” said Mr Gordon. He told Parliament some figures on both the Boeing 737 and B.A.C. 1-11 had changed since the Government's decision—but this was due to subsequent devaluation and the economic situation.

Four jet aircraft had originally been considered as Viscount replacements—the Boeing 737, the B.A.C. 1-11, the DC9, and the Caravelle. “It is important to recognise the fact that the evaluations made by N.A.C. were carried out in considerable depth and included capital cost, operational performance, maintenance, capacity relative to demand, and economics,” said the Minister. These were matters of prime consideration and the calculations and assessments were checked by the Department of Civil Aviation. In all essentials the figures were confirmed. "Not Correct”

Commenting on the claim by Dr Finlay that traffic forecasts were tailor-made to suit the Boeing but bore little resemblance to reality, Mr Gordon said this was incorrect and unfair to the officers who prepared the forecasts from 1967 to 1972. “The traffic estimates were prepared independently by N.A.C. and the Civil Aviation Department and were confirmed by the economic division of the Treasury,” he said. The forecasts were based on facts and information available at the time, and the Minister stressed that present economic circumstances did not invalidate the original forecasts. Devaluation which oc-

curred since the decision to buy Boeing had been taken—had altered the costs and economics of the Boeing and to a lesser extent the B.A.C. 1-11. But Mr Gordon claimed that the results from devaluation would still give a saving in capital costs of $1.85m and better profitability of $787,000. A British Board of Trade delegation to New Zealand bad examined the calculations of costs and profitability and the delegation leader. Lord Brown, had acknowledged he could find no fault with them. More Freight

“On the figures produced the Boeing was the more profitable," said the Minister As well as this factor, the

Boeing aircraft had a greater freight capacity and its cargo holds were more accessible for loading. Commenting that Dr Finlay had raised issues of a technical nature in his speech, Mr Gordon said: “It is not my purpose to decry the merits of the B.A.C. 1-11 which is an excellent aircraft for particular purposes. “Unfortunately it did not suit New Zealand conditions,” be said.

Gardner Appeal.—The Court of Appeal yesterday began hearing an appeal brought by Robert John Gardner against his conviction in the Supreme Court in Auckland on May 14 on 19 charges of false pretences.