Air N.Z. to challenge findings, says P.M.

Press, 30 April 1981, Page 3

Air N.Z. to challenge findings, says P.M.

PA Wellington Air New Zealand intends to challenge the findings of the Royal Commission into the Mount Erebus air disaster in the High Court on the basis “that the findings do not accurately appear to be in accord with the evidence.” The Prime Minister (Mr Muldoon) disclosed this yesterday. Mr’Muldoon said Air New Zealand had discussed with him its intention to try and overturn some of the findings. The airline’s proposed action would be based on a claim that the evidence did not lead to some of the conclusions arrived at by the Royal Commission, Mr Justice Mahon.

“They are particularly in the area of the strongest criticisms of personnel of the airline ... the rather unusual wording that he had heard a litany of lies ... one or two things of that kind which are most damning criticism. “I think for example it is common ground that the material in the computer was altered. Some of the circumstances relating to it are not common ground. ‘‘So this action will be taken and as far as I am concerned I have the majority shareholding in my name as Minister of Finance. That gives me a direct interest in what should be done by the Government apart from my role as the Prime Minister. “What I propose to do is this. As far as the Ministry of Transport is concerned l am satisfied that speedy action will be taken to scrutinise the report and act the various recommendations if that action is warranted.

‘‘This will be dealt with by Cabinet and it won’t take very long. . “Any criticism of the individual members of the staff of the Ministry will be followed up. Bear in mind that according to news reports the chief inspector of air accidents does not agree with the findings of the inquiry in some respects.” Mr Muldoon said a detailed summary of questions he wished to ask the Air New Zealand board had been prepared in the last two days. “Those questions will be put to the board of the airline almost immediately and depending _on the answers I get, I will take the appropriate action, -or recommend to Cabinet the appropriate action. “The questions are principally directed towards the responsibility of the board and the management of the airline for what occurred, both before and after the crash.

“I accept that the Government has responsibility for the appointment of the directors of the board and it is in that context that I am going to take this action. I would remind you that in the report Mr Justice Mahon specifically said there was no criticism of .the board.”

Answering questions, Mr

Muldoon said there was no case for suspending the airline’s chief executive, Mr M. R. Davis. “But that is not a decision for me. This a question of the chain of command or authority. Any question of the suspension of the manager of the airline is not a question for me but a question for the board. “The board in the ultimate analysis has a certain responsibility to me as shareholder. But any question of suspension of any personnel is either a matter for the board or at the lower level, the management.” Asked if he shared the views of the board about some of the language in the report, Mr Muldoon said: “I’ve got to accept the statement from responsible counsel — I'm speaking about people like Lloyd Brown, Q.C., and Mr Williams, the senior counsel for the airline, who have recommended that the airline proceed in the High Court to have some of these findings overturned. “I have got to accept that their, advice must be given weight. I cannot go beyond that.”

Asked whether he thought he may have given the impression that he supported to a degree Air New Zealand's findings against Mr Justice Mahon's report, he said: “I would hope I have given no such impression. What I have endeavoured to do throughout is support a proper approach to determining this matter.”

He could not say how long it -would take the board to respond to the questions he would be putting to it. He said he had not made a decision on whether to make public the questions he would put to the board. “If it is appropriate ... I have no objections in principle. It may be, for example, that some of the material that comes back is of a nature that makes it inappropriate to make public. “I am sure the board will answer me as far as is possible in a form that is capable of being made public.” Asked whether a person could ask the High Court to reverse the conclusion of Mr Mahon that the board should be exonerated, he said: “I do not know as a matter of law whether the Air New Zealand challenge will be accepted by the High Court so I can’t answer that.” The board of directors of Air New Zealand had a full report on the Erebus air disaster soon after it occurred from its chief executive. Mr Davis, but not one in writing, said senior board members yesterday.

The chairman of the airline, Mr C. W. Mace, and a board member. Mr J. D. Dalgety, said there were a lot of special board meetings in the days after the crash and a full report had been received.

Mr Dalgety said: “We had not a written report but a full report of the accident.”