Entry of Ansett

Press, 26 August 1986, Page 18

Entry of Ansett

Sir,—Mr Mike Moore does himself no credit by smokescreening Ansett’s entry to New Zealand (August 16). To liken Air New Zealand’s opposition to the T.H.C. demanding that noone else builds hotels here is ridiculous. Individual hotels stand on their own. Air New Zealand is a countrywide system and letting a foreign-owned carrier chew off the profitable bits will badly affect the other parts. Ansett says it will not significantly reduce fares, that it will replace the two Newmans planes on the tourist route with two smaller ones and only fly jets between Christchurch, Wellington and Auckland. Air New Zealand serves all of New Zealand. It paid its owners, the people of New Zealand, a $65 million dividend last year. Why let a privately owned Australian company siphon off profits overseas, further damaging our balance of payments? In his 1981 book, "Beyond Today,” Mike Moore eloquently opposed foreign take-over of our economy. Why now does he encourage it?—Yours, etc., G. B. TULLOCH. August 16, 1986.

[Mr Moore, Minister of Tourism, replies: “The introduction of a second airline flying domestic routes within New Zealand will provide competition, increased services and a better deal for all air travellers. For the first time in the country’s history, air travellers will have a choice of airlines on the main trunk routes. While I agree that Air New Zealand services all New Zealand, the contribution that second and third-level airlines make to both tourism and the business sector should not be overlooked. Neither should the fact that with the decision made by the Government the New-mans-Ansett-Brierley Airline proposal will be a totally New Zealand-based operation, with the establishment of engineering based at Christchurch to undertake all heavy framing and engineering maintenance. The Government’s insistence that the new airline use Christchurch is an important decision for Canterbury. It is my understanding that this base will also be able to undertake contract work for other airlines. I understand that all personnel for the engineering operation will be relocated and will live in Christchurch and that Newmans Air has recently advertised for engineering staff.

Likewise, I believe the consortium will employ New Zealandbased aircrew on the same basis as staff currently employed by Newmans Air. Successive Governments have encouraged foreign investment in New Zealand, provided that this brings real benefits to New Zealand. There are no inherent reasons why aviation should be treated any differently. There are many examples of foreign investments in New Zealand, such as car companies and insurance. Investment brings opportunities for the continued economic and social development of New Zealand through the provision of employment and other goods and services. Of course, I believe in the maximisation of New Zealand ownership and the best return to Christchurch, that is why the “heavy engineering” conditions were put on the new airline.”]