Secret report said to back Air N.Z.

Press, 6 October 1987, Page 32

Secret report said to back Air N.Z.

NZPA Sydney A confidential Australian Cabinet document has criticised plans to continue to exclude Air New Zealand from flying Australian domestic routes, according to a report in Sydney at the week-end. The Cabinet document was prepared by the Business Regulation Review Unit, the “Times on Sunday” said. The unit was set up by the Minister for Industry, Technology and Commerce, Senator John Button, and has played a key role in recommending the removal of Government controls tn the last year. The unit was concerned

about proposed limitations on foreign investment in the Government’s new aviation policy to be announced this week, the newspaper said. It was particularly concerned about New Zealand airlines being excluded from Australian domestic routes, especially in view of the Closer Economic Relations agreement. “At the very least, consistent with our C.E.R. obligations and Ansett’s presence in the New Zealand aviation market, New Zealand firms should be free to operate in Australia,” the unit said. The Minister for Trans-

port and Communications, Senator Gareth Evans, is expected to move a formal resolution of notice in Parliament to terminate the two-airline policy, which at present gives Ansett and the Gov-ernment-owned Australian Airlines a virtual monopoly of domestic routes. Reports last week said the new policy would allow new Australian entrants to fly the domestic routes, but foreign operators would be excluded. Air New Zealand has been applying for access into Australia’s domestic market in response to Ansett New Zealand being allowed to begin operations in New Zealand.