TRANS-TASMAN AIR MAIL

Dominion, Volume 30, Issue 261, 31 July 1937, Page 11

TRANS-TASMAN AIR MAIL

Method of Control Announced TRIENNIAL REVIEW Contributions From Three Governments

By Telegraph.—Press Assn.—Copyright. Sydney, July 30. The, Minister o£ Defence, Sir Archdale Parkhill, announced that it has been agreed by the Governments of Australia, New Zealand and the United Kingdom that the transTasman airmail service should be controlled by a new joint company on the board of which each Government, is to be_ represented b y three directors. Australia is to bear 23 per cent, of payments to the company, the United Kingdom 38 per cent., and New Zealand 39 per cent., this arrangement to be subject to review every three years. The new company is to be granted mail contracts.

CARRIAGE OF MAILS Terms of Agreement Made at Wellington NEW OPERATING COMPANY The statement by Sir Archdale Parkhill concerning the trans-Tasman air service'was amplified by the Prime Minister, Rt. Hon. M. J. Savage, in a statement issued yesterday. lie said the statement from Sydney by the Australian Defence Minister was in conformity with the terms of the agreement arrived afa by the Civil Aviation Conference between representatives of the United Kingdom, Australia and New Zealand, at Wellington, in September and October <\f last year. The terms were also further discussed in London during the period of the Imperial Conference. “The agreement provides for the creation of a new operating company registered in New Zealand to conduct the trans-Tasman air service,” said Mr. Savage. “The .Governments concerned shall each appoint either a Government Air Commission or an existing company, or shall constitute a new company to represent their interests, and each commission or company so appointed shall nominate three directors of the operating company. In effect, this arrangement will result in each Government being represented on the joint board of the operating company, and the performance of the terms of the agreement shall be supervised by three Government representatives, one to be appointed by each of the three Governments. “It is provided that the operating company shall be licensed to .operate the trans-Tasman air service, and shall be granted contracts for the carriage of mail by New Zealand, the Commonwealth of Australia, and the United Kingdom. To enable the service to be carried on the three Governments shall make annual payments to the operating company, these payments to be subject to revision at the end of three years from the commencement of the service, and thereafter at three-yearly intervals during the continuance of the agreement. “During the first three years of operation,” the Prime Minister explained, “the three Governments concerned shall make contributions in these proportions: Australia, 23 per cent.; United Kingdom, 38 per cent.: and New Zealand. 39 per cent. “The revenue from the postal rates to be charged to other countries using the service shall be apportioned to the three Governments on the basis I have mentioned regarding contributions to the operating company. “Although somewhat delayed because of the necessity for three-cor-norerl negotiations, it is thoroughly satisfactory to New Zealand. The operating company is to be under our eyes, and an important, part of its services to be in close touch with the interests of the people. It is true that our part in the contributions is the largest, but then so is our share in the distribution of revenue.” It is understood that the percentages were arrived at after an estimation of the probable quantity of mails that will be carried, and the benefit of the service to the respective countries.