AIR SERVICES

Evening Post, Volume CXVIII, Issue 28, 2 August 1934, Page 15

AIR SERVICES

COMMERCIAL FLYING

TO BE CONTROLLED

BILL INTRODUCED

The Transport Licensing (Commercial Aircraft Services) Bill, introduced into tho House of Eepresentativos last evening by Governor-General's Message and read a first time, places commercial aviation in New Zealand under the control of tho Transport Board, so that route licences and questions of fares and competition may bo dealt with.

Tho Bill makes it unlawful for any person to carry, on in any part of New Zealand any aircraft service without an aircraft service licence.

Commercial aircraft service operating at the passing of the Act may continue to operate for twonty-eighfc days without obtaining a, licence, provided an application lias been niado for one. Failure to sccuro a licence renders tho offender liable to a fine of £100 and to a further fine of £10 for every day on which the offence is committed. Directors and other persons acting in tho management of the service will be liable to : a fine of £10 for every day on which the service is carried on without a licence. /It will also be an offence for any person to act as an agent for any unlicensed aircraft service, the line in 1 this case boing fixed at £50. CONDITIONS OF LICENCES. Licencos are to be granted by tho Transport Co-ordination Board, but the chairman or any other member of the board or any authorised person may grant a temporary lieeneo in a case of emergency. Provision is made for tho advertising of applications, which aro to bo dealt with by the board at a public sitting. In considering any application for a licence, the board is to have regard to (a) the extent to which the proposed service is necessary or desirable in tho public interest; (b) the needs of New Zealand or the district or districts proposed to be served in relation to transport, whether by air, land, or water; and (c) the value of the proposed service and its aircraft and ground organisation. Other matters to be taken into consideration are the financial ability of the applicant to carry on tho service, the tjmo-tables or frequency of tho proposed service, the proposed faros and charges for tho carriage of passengers ana goods, the transport services already provided in the localities affected, the transport requirements of such localities, tho aircraft proposed to be used, and the type and suitability of the aerodromes proposed to be used. In cases where adverse representations aro made, other than at a public meeting, the board is to givo tho applicant and all othor persons affected a reasonable opportunity to reply to such - representations. Temporary licences may bo issued for not longer than seven days. Tho board will have power to prescribe tho class and number of aircraft to be used, tho seating or other accorn-v modation, tho class and quantity of goods that may be carried, the date not later than which the services are to commence, tho localities _to bo served, the frequency of service to be observed, the fares to bo charged for passengers and the charges to be made for the carriage of goods. The board will also have power to grant a lieeneo covering tho whole of New Zealand, although this licence may b"e restricted at any time tho board thinks fit. ACCIDENT RISKS. Before granting a licence, the board may call upon tho.applicant to furnish to its satisfaction proof that his liability in respect of death or of accident to passengers and in respect to loss or damage of goods.is covered by insurance or otherwise. It is to be a condition of every licence that the licensee will not abandon or curtail the authorised service without, the consent of the board, in the event of the licensee abandoning or curtailing a service, tho board will have power to revoke the licence- and to disqualify tho licensee from obtaining another licence. In. addition, the board may imposo a penalty not exceeding £.25. Licences are to be for a period of fivo years. The board may during the currency of a licence amend or revoke any of the terms or conditions when it holds the opinion that it is necessary to do so in the public interest, provided seven days' notice is given to the licensee. Provision is mado for the transfer of licences to other persons Licensees may be required to keep accounts and to make returns to the board. ' Offenders under the Act arc to ■Do tried summarily and the onus of proving that no offence has been committed is on the licensee. The provisions of the Act are not to be derogatory to the provisions of the Air Navigation Act, 1931, unless it is specifically stated. Sunday flying is to be permitted under the terms of licences granted under tho Act aud tho Act is to be binding on the Crown. MINISTER'S EXPLANATION. "The Bill contains provisions for the licensing and regulation of air transport," said the Minister of Transport (tho Bt. Hon. J. G. Coates). "It does not in any way contravene tho Air Navigation Act of 1931, but proposes definitely to hand over to tho Transport Board the licensing of all machines that may be plying for hire and othc commercial aviation, air routes, and so forth. It purports to regulate and arrange air commerce. It does not interfere with machines landing here from other countries, provided they_ do not ply for transport in the Dominion. If mails and passengers were landed in New Zealand from overseas and then carried to different towns here, tho company concerned would require to be registered and licensed by tho Transport Board. It will affect joy-riding if an aeroplane lands at an aerodrome ,other than'the one from which it take's off. These provisions would not apply in tho case of a forced landing in an emergency. If a pilot is joy-riding from one* airport-to another it will bo necessary for him to register aud be licensed." Mr. B. McKeen (Labour, Wellington South): It won't conflict with the fees and charges made by local bodies as far as aerodromes are concerned? Mr. Coates: No. He added that -the licence fees would bo quite nominal. If commercial aviation were to-bo-successfully established in Now Zealand it was essential, in the opinion' of thoso qualified to discuss tho subject,- that stops should be taken to overcome tho difficulty created by "pirating." Accordingly, under the Bill, it .might be necessary to givo a twelve months'or two years'right to an aviation concern to establish a commercial air service between two given airports and see how it could bo developed. If, however, a service wero to be subject to temporary price-cut-ting attacks, it would bo impossible for any company to establish a suitable commercial air service in tho Dominion. Mr. W. J. Poison (Government, Stratford): You aro applying laud transport conditions to the air1? Mr. Coates: Yes. The Bill gives Iho Transport Board power to license commercial avintjon in any form and regulate it as it thinks fit.

In rcplj; to questions, tlio JMinister

said that aeroplanes would have to run to proper time schedules. Thcro wore several companies "in tho ofling," but none seemed very auxious to start operations as long as thcro were no regulations. The board would not have the power to fix the liconce foes, which would bo prescribed by Order in ■Council. A schedule prepared by the board would be submitted to tho Government, which would consider it and amend it it' necessary. Mr S.G. Smith (Government, New Plymouth) said that if aviation was to'bo encouraged he was not suro that tho Bill was going to achieve that object. There was no doubt that transport administration in Now Zealand was not popular, and if they wero going to place commercial aviation under ttio Transport Board thcro was a danger that its progress would bo retarded rather than encouraged. He suggested that tho Minister might agree to send tho Bill to a committee. Ho had been clbsolv identified with aviation in New Zealand, and ho had to confess that he had heard no demand that it should be placed under the control of the Transport Board. . Mr. F. Langstone (Labour, Waimarino): Would you suggest anotner b°Mr." Smith: lam not talking about another board. . . ..,.,.'. Mr. Langstone: Then who is going to control it? ' . Mr. Smith said that commercial aviation was under tho control of the Defence Department, and the Director ot Air . Sendees was Controller or Civil Aviation as well. Ho realised that tho time must eomo when there must be control ovor services that might do established in New Zealand.

A LITTLEIPBEMATUKE. Mr D W. Coiemaii- (Labour, Gisborne) said that ho, thought the Minister was a little premature in bringing down the Bill. It was quite within the bounds of possibility that there would bo an. air service from Gisbornc in tho near future, and the people of Gisborne did not want anything to interfere -with its success. Tho Minister of Transport said that he felt it would not be possible for any strong commercial aviation company to commence operations under the present conditions. The Bill made it possible to give encouragement to a company with sufficient capital. ; ' Mr. E. Bomplo (Labour, Wellington East): Why not a purely .Government SCMr? o Coatcs: We arc still at the pioneering stage and I would prefer to see tho pioneering done by pnvatt Minister said- that-he did not think there was much reason to complain about the manner in which tut Transport Board had done its woiX. There were several commercial aviation enterprises in prospect. ~,-<,,■ Tho BUI was introduced and re* -..-a first time.