Nat. M.P. sees S.O.E. lesson in Qantas excluding N.Z. cargo

Press, 1 December 1988, Page 6

Nat. M.P. sees S.O.E. lesson in Qantas excluding N.Z. cargo

National’s spokesman on State-owned enterprises, Mr lan McLean, says reports that Qantas is turning away New Zealand cargo to make space for Australian goods proves the need to limit foreign ownership in Air New Zealand. Mr McLean made the remarks yesterday after Wellington reports that Qantas in Australia was excluding New Zealand goods bound for Japan. Qantas is said to be declining to carry New Zealand goods from Sydney to Tokyo on Mondays, Thursdays and Saturdays, reserving the cargo space instead for Australian exports. Mr McLean said the “Aussies first” rule showed the dangers of foreign control of Air New Zealand. “It shows what everybody

knows, that Qantas serves the Australian national interest first and everybody else second. “In the same way Air New Zealand puts New Zealand ahead of the Interest of any foreign Government.” Mr McLean said for this reason National had designated Air New Zealand a strategic asset and would require any foreign shareholding above 24.9 per cent to be divested and sold back to New Zealanders. “This will keep Air New Zealand firmly under New Zealand control and serving the national interest.” Replying from Vancouver, the Minister of Finance, Mr Douglas, said the choice of a 24.9 per cent threshold was arbitrary and took no account of the potential benefits of selling differing sizes of share-

holdings. The National Party was reacting to opinion polls to form its policy, he said. Some foreign ownerships could produce benefits for New Zealand. For example, foreign ownership of a hotel would produce an incentive for the inventor to keep the hotel full with foreign tourists, Mr Douglas said. Mr McLean’s concern stemmed from reported comments by Mr David Bell, the managing director of Polar Products, Ltd, whose chilled fish exports to Japan have been disrupted by the Qantas decision. Cargo space demand by Australian exporters coupled with Qantas’ commitment to preserve the requirements of Australian exporters had led to a reduction in cargo space for

New Zealand goods being trans-shipped through Australia. Canterbury exporters do not seem to be striking the same problem. Mr lan Howell, the executive director of the Canterbury Manufacturers’ Association, said the C.M.A. had not heard any complaints from members. District manufacturers and exporters benefited from the direct international air links through Christchurch. “Air New Zealand, Qantas and Singapore Airlines are all carrying local goods and these direct flights have overcome past problems of Canterbury exporters, when South Island goods were being held up during trans-shipping in Auckland.”

Complaint, page 27