Govt urged to take away taxes on Air N.Z.

Press, 8 March 1982, Page 12

Govt urged to take away taxes on Air N.Z.

PA Wellington Air New Zealand’s application for a 7.5 per cent increase in domestic passenger fares could be harmful, if approved; according to Labour’s Shadow Minister of Transport, Mr F. McD. Colman. , Each time there was a fare increase of this magnitude consumers did not buy as mariy tickets.

“How long are the public going to be faced with a rash of domestic airfare increases? Four in the last year added on to the present application would bring about an increase nearly three times the inflation rate for that period,’’ Mr Colman said. “Clearly, the airline will soon be catering only for the executive class who travel

on expense accounts. The average member of the public can no longer afford fares of $2OO from Wellington to Auckland return to visit friends, family, or to attend university.” The estimated $lO million the 7.5 per cent fare increase would provide to Air New Zealand on a net annual recovery basis could be obtained by. another simple i method that would haVe no i consumer resistance, because it would be in their interest.

“The Government collects in total $B5 million a year from Air New Zealand each year in the form of taxes, dues, and other charges. About $l5 million of that is in the form of the domestic travel and aviation fuel tax which it imposed on Air New Zealand,” he said. He urged that those taxes be suspended or removed to enable Air New Zealand to both obtain financial stability again, and to keep airfares down and patronage up.