State Airways: No Final Decision Made

Greymouth Evening Star, 30 September 1950, Page 6

State Airways: No Final Decision Made

WELLINGTON, September 29 (P.A.). —No decision has yet been made by the Government about the disposal of the National Airways Corporation. The Prime Minister (Mr Holland) gave this information during the debate on the Imprest Supply Bill No. 4 in the House of Representatives today. Mr Holland said the Government had invited applications of any sort for the purchase of the corporation, and the sale would suit the Government best if it was on a lock, stock, and barrel basis.

When the Leader of the Opposition (Mr Fraser) appealed to the Government to carry out its election promise that 49 per cent, of the capital would be offered for public subscription, Mr Holland asked whether that would make him happy. He asked whether Mr Fraser would be happy if the corporation was organised on the same basis as the British Petroleum Company of New Zealand, Ltd., with a large measure of State capital and private management. The Deputy-Leader of the Opposition (Mr W. Nash) denounced the Government’s proposals as a complete breach of the election understanding. The Government would have a hard job to replace the present officials and heads of the corporation. He hoped that, in view of evidence that by 1952-53 the corporation would be showing a surplus, the Government would not proceed with its plans. Mr M. Moohan (Opposition, Petone) said the Government’s announced intention of selling the airways showed its incompetence and was an indictment of the N.A.C. board of directors. In event of war, the air lines would have to be taken under Government control, involving large sums for compensation for an asset which on the evidence now available would be showing a profit within a yeai' or two. “Attempt To Govern By Threat” The Minister of Health (Mr J. T. Watts) said Opposition threats to resume public control of the airways if they were sold was an attempt to govern by threat of a political minority. The Government had honoured its predecessors’ contracts and would expect its successor to do likewise. Mr T. H. McCombs (Opposition, Lyttelton ) asked whether the airways were to be. sold without the Government meeting any of the losses which the Minister had stated worked out at lOld a mile. Would the Minister say that it was proposed to make an adequate charge for all services associated with the National Air Corporation? Ansett Airways had made a loss last year of £250,000, yet that organisation had been proposed as purchasers of the corporation. The New Zealand mail subsidy and the loss a mile on the airways were the lowest in the world. The Leader of the Opposition (Mr Fraser) said the corporation was emerging from its difficulties and it would be a calamity if the air services were sold now. No purchase price could ever compensate the country for what it would lose. Fie thought the airways should i’emain in State ownership, but if not, the Government should at least follow its manifesto policy of establishing the corporation with a majority ol State capital. 50-50 Arrangement? Mr Holland said the Government had made no decision on the disposal of the airways, but had said it would consider any kind of proposal. It appeared that a 50-50 arrangement would make the Leader of the Opposition happier. Mr Fraser said people in remote areas would feel safer if the State retained some interest in air services. It would be anomalous if the State sold out the more profitable trunk services and then had to subsidise services to outlying areas. Mr Holland: They will be saleguarded. We don’t allow anybody to be isolated.