Mr Justice Mahon warns Air N.Z. on court action

Press, 1 May 1981, Page 1

Mr Justice Mahon warns Air N.Z. on court action

The Royal Commission into the Erebus disaster, Mr Justice Mahon, said last evening that Air New Zealand would not like what it heard if he had to present more evidence on the disaster to a High Court hearing.

His Honour said that he had anticipated there would be reaction to his report, but all his conclt,'’ions were bpsed iMely on the evidence heard. “When the High Court proceedings are heard the evidence against Air New Zealand officials will be heard and analysed by counsel for the Commission in far greater detail than was possible in drafting my report,” he said. “It is possible that Mr Dalgety (a Wellington lawyer and Air Hew Zealand board member) will nofbe very happy at what he hears. He and the Prime Minister (Mr Muldoon). may have to modify some of their reported comments.” his Honour said.

Of his Honour’s reported remarks, Mr Muldoon said: “As far as his ‘litany of lies’ is concerned, I can find nothing in his report which supports that comment.

“I have made the point’ that I have not read the transcript of evidence. But others, in whom I have some confidence, have, and they advise me that there is nothing in the evidence which supports that statement.

“I cannot back that up, but I have some confidence in those who have advised me.”

“My own reading of the report tells me that these finding are not supported by evidence set out in the report but merely represent an opinion expressed by Mr Justice Mahon,” Mr Muldoon said.

“In those circumstances I believe that the action of the board is a proper one and its duty to its long serving employees requires it to do no less.” Later last evening Mr Justice Mahon said that Mr Muldoon may find his confidence in his advisers “sadly misplaced,” reports the Press Association. “The Prime Minister’s comments are interesting, but unsound,” he said. “The evidence cannot possibly be understood without reference to hundreds of pages of exhibits. “The Prime Minister says he has confidence in his advisers. I can only suggest that he may find, in due course,, that his confidence has been sadly misplaced.”

Early yesterday Mr Muldoon endorsed the decision of Air New Zealand’s board to test the Royal Commission’s findings in the High Court.

The board was composed of . men of high reputation and total integrity. It included two highly respected and well ex-

perienced former airline pilots, he said. "Its chairman was appointed by the Labour Government to . chair N.A.C. Both the board and its legal advisers, after a detailed investigation, believe that certain of the findings of the commission should be tested in the High Court.”

Some of the news media and various Labour Party politicians were trying to stampede Air New Zealand into taking action which would destroy the careers and permanently damage the reputations of several of its most senior and long serving employees, Mr Muldoon said. “I am neither interested in nor impressed by the views of these vultures because Air New Zealand is not yet a corpse.” His statement came after his meeting on Wednesday afternoon with the airline’s chairman, Mr C. W. Mace, and Mr Dalgety, a friend of Mr Muldoon.

Mr Muldoon said that he would put questic-s to the airline’s board and action he would take concerning it would depend on the answers.

Referring to findings of the Royal Commission which were based on evidence set out In the report, he said there could be little quarrel with the opinion that was formed “even though it may conflict with other opinions based on the same facts. “As far as the Government is concerned, there will be no delay in dealing with the matters which arc the Government’s responsibility. “I do not, however, propose to take any steps to intervene in a matter which has now become a matter of simple justice to certain individuals, a fact which the vultures are happy to ignore.” The Leader of the Opposition (Mr Rowling) said last evening that Mr Muldoon had to face the reality of the situation and realise that his duty and responsibility was to the public of New Zealand and to the future of their airline, arid not to a clutch of personal political friends.

Mr Rowling said he was shocked to see Mr Muldoon now lining up the Government with the board of Air New Zealand, and describing those demanding action, including the news media and the Labour Party as “vultures.” “Let the Prime Minister and the public of New

Zealand understand that the one /thing the Labour Party is fighting for js the continuation, and sound future of a great airline and its staff.

“We say that unless prompt action is taken, the facts faced, the management responsible sacked, and the airline given a strong and constructive forward programme, then the future of Air New Zealand is bleak,” he said. “Mr Justice Mahon tonight has made it clear that he is confident of any proceedings in the High Court supporting his findings. . “I suggest, very strongly, that in the interests of the future of this airline, the Government accept that statement, and do what they should have done days ago — demand action from the board to put the airline’s house in order,” Mr Rowling said.

The Shadow Minister of Transport (Mr F. M. Colman) said the Royal Commission had found major cracks in the top level management of Air New Zealand. “That cannot continue.” He said the travelling public had a right to be assured that Air New Zealand was a safe and efficient airline. “The Prime ■ Minister is showing flagrant disregard for the findings of the Royal Commission. He must forget personal friendship and act immediately to restore confidence in the airline.

“If that means removing the entire top management, so be it. But let’s not hang on because of personal friendship or other diversionary tactics. “A High Court action would only have marginal success and nothing will be achieved in so far as the airline and the travelling public are concerned.” Labour’s associated Shadow Minister of Transport (Mr N. J. Kirk) alleged yesterday that Mr Muldoon was exercising political “cronyism” by protecting his friends at the expense of the findings of the Royal Commission.

“Let us be in no doubt — 257 people died in that crash and a Royal Commission, headed by one of the most respected legal men in this country, has found that Air New Zealand top executives covered up mistakes that led to the disaster.”

Further stories, pages 3 and 4