NATIONAL AIRWAYS
STATE CONTROL BILL COMPULSORY ACQUISITION WELLINGTON, November 22. The establishment of a New Zea-' land National Airways Corporation, to establish, operate and maintain air services within and beyond the Dominion, is provided for by the New Zealand National Airways Bill introduced in the House of Representatives to-night. The Bill gives the corporation power to take oyer the assets of the existing companies. The Bill is described in the short title as a measure “to make provision for the incorporation of the New Zealand National Airways Corporation for the purpose of establishing and operating a national air transport service to meet the needs of the people of New Zealand, and for the purpose of fostering and encouraging the use of air transportation within New Zealand, and between New Zealand and other countries and to make provision for other matters incidental thereto.” The clauses dealing with the function of the corporation in regard to air services beyond New Zealand, state that the Corporation, with the approval of the Governor-General-m-Council, shall have, and may exercise, in relation to air services between any place in. New Zealand and any place outside New Zealand, the like powers as ’it has in relation to the air services within New Zealand. The Corporation also, with the approval, of the Governor-Gen-eral-in-Council, may acquire any shares or other interests in any other organisation which is carrying on, or is interested in, the establishment, maintenance and operation of any air service between any place in New Zealand and any place outside New Zealand, or it may, with similar ap-, proval, enter into any agreement for the purpose of establishing and operating any such air service. The clause dealing with compulsory acquisition of aircraft and other property, states that at any time before December 31, 1947, the Corporation may acquire any aircraft or other property which is required lor the purposes of the Corporation, and which is owned by any company, or other body, that, on the passing of lhe Bill, was the holder of an aircraft service license. The owner of any aircraft or property acquired shall be determined within the time and manner prescribed in the Public Works Act, 1928, in respect of claims for compensation. The capital of the Corporation shall be one million pounds, which shall be paid to it by the Minister of Finance when, in the opinion of the Minister, the Corporation requires it. The Corporation is empowered to borrow up to half a uiilion, as, in the opinion of the Minister, is required by the Corporation in addition. to its capital. In addition to this borrowing power, the' Corporation may, with the Minister’s consent, borrow from the Bank of New Zealand. Advances may be made to the Corporation from the National Development Loans Account, as well as the Public Account. The net profits of the Corporation shall be paid into the Public Account. MR. HOLLAND'S COMMENT. Although the Leader of the Opposition accused the Government of 'furthering its programme of ultimate socialism, exchanges over the preliminary stages of the Bill were brief. The first reading was completed within ten. minutes. “I take it this is just one more step by the Government towards ultimate socialism,” said Mr. Holland. He suggested the Government would grab somebody else’s . property, and, if previous legislation were any criterion, would give those from whom property was expropriated no right of appeal against the price which would be fixed. He suggested that, in view of the programme on which the Government apparently had embarked, the Prime Minister should announce whose property would next be taken. Perhaps, in view of the reception accorded a previous measure, the Government would, even at this late stage, think it worth while to anpoint some tribunal which copld fix a fair price for property to be taken over. The session was within a fortnight of its end, and if further measures of this kind were contemplated, the country should be given some indication. Mr. Jones said the Bill had o 4 clauses. It provided for the establishment of a NeW Zealand National Airways Corporation, which would have five Directors, whose term of office would be three years. The Corporation would have power, to establish, maintain and operate air .services of the Dominion, and would have power to take over the assets of existing companies. It would also have power, with the Government’s approval, to operate services outside of New Zealand. The other clauses were mostly machinery ones. > He did not think the Opposition would have a complaint to find with the Bill. Mr. Holland: Who fixes the price at which assets will be taken over? Mr. Jones: They can be taken compulsorily under the Public Works Act, if necessary; but I think we will be able to come to an agreement with regard to taking over the assets of existing companies.
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Greymouth Evening Star, 23 November 1945, Page 2
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808NATIONAL AIRWAYS Greymouth Evening Star, 23 November 1945, Page 2
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