Losses And Capital Payments On State Air Lines

Greymouth Evening Star, 17 August 1949, Page 3

Losses And Capital Payments On State Air Lines

WELLINGTON, This Day (0.C.) —The New Zealand Government last year paid £85,000 as its half share 6f the estimated operational loss of Tasman Empire Airways for the year ended March 31, 1949. In the National Airways Corporation account it also paid £21,734 to effset a revenue deficit on Pacific' regional services incurred from November, 1947, to March 1948. As its share in the loss on the operations Of British Commonwealth Pacific Airlines; Ltd., the New Zealand Government paid £58,110, representing 30 per cent, of the loss on operations from June, 1946, to June, 1948. A further sum of £48,387 will come to charge during' the current year. Details of these losses oh air services in which the Government has a financial interest were given in the annual report of the Controlled and Auditor-General (Mr J. P. Rutherford) , presented to the House of Representatives yesterday. New Purchase A new purchase of 257,998 £1 shares in Tasman Empire Airways gives New Zealand a 50 per /cent;? holding increasing its total paid-up interest to £375,000 The capital has been increased to finance the purchase of new aircraft. In the financing of the National Airways Corporation, the Government had paid to March, 1949 £1,225,000'. Under the act the Government has power to pay the corporation from the national development loans account capital amounting to £1,000,000 and make further advances up to £500,000. Last year the amount paid to the corporation was £685,000. In British Commonwealth Pacific Airlines, New Zealand’s shareholding is 30 per cent., with the Australian Government holding 50 percent. and Britain 20 per cent. New Zealand made a capital contribution of £300,000 in 1946-47 and 1947-48 and although no capital contribution was made in 1948-49 a further amount of £240,000 will be required during 1949-50 to meet an authorised increase in the company’s capital. The three Governments concerned in B.C.P.A. in a directive to the company rcQuested. the prepaiation each year of a programme of operations and an estimate of expenditure tp cover the ensuing year. Making Up Deficiencies

“If the company’s operations result in a loss the Governments have undertaken to make good the whole of the deficiency or such part of nt as is deemed necessary,” said the Auditor-General’s report. ’ New Zealand has undertaken the control and operation of the Nandi airport in Fiji. The cost of this undertaking is borne initially by the New Zealand Government and is adjusted under a pooling arrangement among the Governments of the United Kingdom, Australia, and New Zealand, each paying one-third. The total expenditure from the inception of this pool account in December, 1946, to March 1948, was £245,584 and claims have been preferred against the United Kingdom and Australia lor their share, but so far no settlement has been made. Accounts for the last year have not been completed.