NATIONAL DEFENCE AND AIR SERVICES

Dominion, Volume 29, Issue 198, 19 May 1936, Page 10

NATIONAL DEFENCE AND AIR SERVICES

Related Problems CHAMBER OF COMMERCE DISCUSSION A discussion on public or private ownership of air services at the meeting of the council of the Wellington Chamber of Commerce last night turned into one on national defence. A committee was set up to consider aud report, on the latter subject. Tlie discussion arose when reference was made to tlie chamber s deputation on mail and cable services to the Post-master-General. Hmi. F. Jones. .Mr. M. G. C. MeCaul said that in tlie interview an opinion had been expressed that no public service should be operated at a profit. The Chamber of Commerce policy was in opposition to Government trading at all, but if the Government insisted on having trading departments, the chamber's view was that these should, as far as possible, be operated on the same conditions as private enterprise, so that private enterprise would have a fair chance to compete. Another member of tlie deputation had deplored the fact that private enterprise had been allowed to embark on air services. The Chamber of Commerce policy had always been that all commercial undertakings should be loft to private enterprise, and the statement was therefore in conflict with settled and accepted policy. The companies which had embarked on air services wore to be commended and not criticised. lie hoped there would be more services, as long as competition did not become uneconomic. Captain S. Holm said he did not think a policy of insisting that public services should be run at a profit would find genera] backing among chambers. Tlie Post, and Telegraph Department, for instance, had a monopoly and could make a lug and easy profit simply by doubling postage. The Tost and Telegraph Department, however. was not there to run at a profit, but to run for service.

Mr. C. J. B. Norwood, the president, said it was the opinion of almost every business man that all undertakings should bo self-supporting in a business sense. While there were public services which were monopolies, it was the duty of those in charge to see that these were run economically, to cover costs at least, but where the annual turnover was so huge that a fraction of a farthing one way or another made a big difference in the aggregate at the end of a year there should be careful mathematics to see that the profit was not unduly high. Captain Holm said his point was that public monopolistic services, such as postal and telegraphic services, should not be run for profit, but to give service.

Mr. Norwood said a public service should not burden other services, but should pay its way if possible. Captain Holm explained that he had advocated sending mails by the quickest moans available, the department not. to consider the question of profit, and not Io make a loss, but, above a’l, to provide (lie service. .Mr. W. M. Wright remarked that the discussion seemed to have arisen out of remarks made by him at: tlie deputation. A Government department competing with a private business should do so on competitive terms, but where a department, had a monopoly of its class of business profits really became extra taxation on tlie community and should be used either to reduce charges or to improve services. He had urged, as a member of the deputation, that air mails should be carried at ordinary rates .of postage because that would’be one way the department could return the profits it made to the public. Question of Defence. Government operation of air services had been suggested because of the relation of living services to national defence, Mr. Wright said. After referring at length to the uncertain international situation to show the need for adequate defensive forces, he said that competent authorities agreed that air defence was the best, lor effective ai* defence it was desirable to have commercial machines which could lie converted in time of need for defence purposes and It was also necessary to have au experieuced personnel such as that trained on air services. New Zealand was practically unprotected at present. The Royal New Zealand Air Force was not as strong as it should be. It was time members took a broader view of some problems, and for those not alive to defence problems it was time to wake up. It was up to everyone to urge Che need of a strong defence force, whether by sea. land or air. Labour used to favour general disarmament,, but had made no announcement of its defence policy since taking office. He thought it. was time the public got the view of the Government. Mr. Norwood remarked that tlie discussion had got right away from the point. No question of such importance as that now being debated should be decided at a meeting at which it was brought forward only under the heading of general business. A committee should first of all consider the whole question and then members should have a chance to discuss it formally, so that an opinion could lie readied that would be tlie considered view of the chamber. He declared the discussion closed, pointing out that opinions expressed had been those of members only and not. those of the chamber. Mr. MeCaul: There has been some criticism in the city about a deputation from tlie chamber opposing pri vote enterprise in air services. That was the only reason for my remarks. Mr. Norwood: A matter of policy should not be discussed and decided in this hurried way. Mr. Wright, moved that the question of national defence be referred to a committee for investigation. Mr. MeCaul: It's not. a question rf defence, but a question of private ownership of air services. Mr. Wright : This is general business. I can bring forward any subject now Mr. Norwood : These .ire quite proper subjects for us to discuss, but in :.i proper way and not haphazardly. Mr. If. S. Fairchild, the secretary, pointed out that the remarks made at the deputation referred to the carriage of air mails, and private enterprise was used for the carriage of other mails, such as on steamers.

Mr. Wright proceeded with his advocacy for special consideration of defence. and Captain Holm and Messis. McCaul, Wright, 11. P. Hopkins and D. J. McGowan were appointed a committee to consider the whole question of national defence.