TO BE STATE OWNED

Grey River Argus, 23 November 1944, Page 4

TO BE STATE OWNED

AUSTRALIA’S AIR SERVICE All Inter-State Lines (Rec. 11.42). CANBERRA, Nov. 22, The Australian inter-State airlines are to be taken over by the Commonwealth' Government. The Government will operate all the inter-State services. This announcement was made by the Acting-Frime Minister, Mr F. M. Forde, in the House of Representatives to-day. Mr Forde said that the Government had decided that statutory authority should be formed to ta'ke over, operate, and maintain all inter-State airlines. The authority would be wholly owned by the Government. The Department of Civil Aviation would continue to provide and to maintain all of the services that are auxiliary to the operation of the air routes, such as- the landing fields 1 , the radio, the other navigational aids, and the like.

Mr Forde said that all of the employees in the industry would be fairly and justly treated. The assets of the present airline companies would be taken over on fair and just terms 1 . Mr Forde said: “This early announcement is made, not only'so that the private operators may know the Government’s policy, but also so that the Commonwealth may; tackle the many pressing problems associated with’ civil aviation.”

The announcement of the taking over came as a bombshell to members of the Opposition. The Leader, Mr R. G. Menzies, said that this new Government policy was a first step in a Socialist war and that it represented a major success for the Left Wing of the Caucus. He said; “The dead hand of the Government administration would inevitably make Australia a backward nation in air transport. This would be a tragedy for a large countrv wherein we should have the benefit of the best results of initiative and competition.” Captain Holyman, Managing Director of Australian National Airways, in Melbourne, said: This is the first indication I have had that the Government contemplated such a sweeping -step. I am rather astonished that they should do a thing like this. They have let me proceed with the whole of my p'ost-war plans without giving any indication that a' decision of this kind was in the offing.