Agreement On Earnslaw

Press, Volume CVIII, Issue 31864, 17 December 1968, Page 1

Agreement On Earnslaw

(N.Z. Press Association) WELLINGTON, Dec. 16.

The Lake Wakatipu steamer Earnslaw will be leased to an Auckland group from January 1, pending negotiations for its sale, the Minister of Railways (Mr Gordon) said today. “Subject to minor points yet to be decided, the sale of the Earnslaw to Mr A. L. Type, of Auckland, and his associates, will proceed. “Because of the time required by the formalities of change of ownership, the steamer will be leased to the group from January 1 until

i these formalities are comI pleted,” Mr Gordon said in a statement. I A condition of the sale was that the buyers continue to maintain the services, particularly to the runholders on the south-west side of the lake. Five of the Earnslaw’s crew of 14 would be retained, Mr Gordon said. The others would continue their employment with the Railways Department or some other Government department. As indicated at the recent Frankton meeting, the Government felt that there was greater scope for a more diversified use of the steamer when run under private enterprise, with a consequent improvement of finances, Mr Gordon said.

The steamer has run at a steadily increasing loss for several years, reaching a peak in the 1968 financial year. “With the steamer owned by a party of working partners, many of the problems encountered by State operation will be obviated. “Should the enterprise be threatened with failure, the Government will sympathetically consider any proposal to keep the steamer going, and it has indicated that deferment of mortgage repayments could be one step. “Naturally, the Government could not give any firm commitment at this stage, but if it was economically possible, the service would be kept going,” Mr Gordon said.