Erebus compensation settlements criticised

Press, 11 October 1982, Page 10

Erebus compensation settlements criticised

PA Wellington Air New Zealand and the Government’s method of settling Mount Erebus air disaster compensation claims compares unfavourably with the Union Company's handling of the Wahine tragedy, says a labour member of Parliament. Mr F. D. O'Flynn, a Queen's Counsel who appeared for a consortium of survivors and dependants of some victims of the 1968 Wahine sinking, said there were parallels between the two cases. He said that like the Mahon Erebus commission, the marine court of inquiry had made findings which were not legally binding. "The Union Company promptly considered the situation and within a very

short time told solicitors for claimants that liability would not be contested and claims could be lodged for assessment as to amount.

"This relieved' everyone concerned of worry." Mr O'Flvnn said.

"In sharp contrast this Government and Air New Zealand have allowed things to drag on for 16 months before making a decision that was a pretty obvious one from the start."

He was referring to the announcement by the Attor-ney-General. Mr McLay. that the Government had decided on the contribution it would make to compensation, and Air New Zealand and its insurers would now be able to settle quickly. Mr McLay. responding to Mr O’Flvtin’s comments.

said: "From the Crown's point of view this was the earliest possible opportunity that the matters could be settled." "It is only recently that it has been possible to make a reasonable assessment of the total value of the claims.

"The advantage of the Crown's settlement with Air New Zealand and its insurers is that, in return for payment of a lump sum by the Crown. Air New Zealand will not dispute its liability to the claimants: nor will it endeavour to limit its liability to less than $42,000 as it might previously have been able to do." Mr McLay said "In the result nearly all the outstanding claims should now be able to be settled by the end of this year."