PARLIAMENT

Manawatu Standard, Volume LIV, Issue 210, 4 August 1934, Page 9

PARLIAMENT

AIR TRANSPORT. THE LICENSING BILL. GOVERNMENT LOOKS AHEAD. Per Press Association. WELLINGTON, Aug. 3. Til© Transport Licensing (Commercial Aircraft Services) Rill came before the House of Representatives for the second reading this afternoon. The Minister of Transport (lit. Hon. J. G. Coates) said that toe Bill was designed to provide for a licensing system for commercial aviation sei'vices. The point had been raised that it was unnecessary to have any method of control for aviation, and when the Transport Act was before the House aviation was eliminated, although it was originally intended to bring it in. However, the time had arrived when they should seriously consider the situation which was likely to grow tip fairly soon. Travelling by air was becoming increasingly popular. There were regular services m Europe and America, and developments were taking place in Australia, where regular services were being carried on. Mr D. G. Sullivan: Are local bodies which provide grounds affected by the Bill? Mr Coates said that if a reputable company intended to establish regular services the Government would endeavour to get the best possible terms for landing grounds. . Mr W. E. Barnard: This places civil aviation,under civil control? Mr Coates: Yes.

The Minister said that it was essential that they should co-ordinate all forms of transport. Mr Barnard: There will be no vested interests ? Mr Coates: If the license is from year to year I do not see how vested interests can grow. Mr Barnard : We want to be clear about that fnom the start. The Minister said it could not now be claimed that New Zealand was not a suitable country for aviation. What might have been impossible ten or fifteen years ago was possible to-day. Taking it all round, it looked as if commercial aviation could be undertaken. It was wise that the control of the services should be enforced from the beginning. Mr F. Jones: Is there any reason why the State should not carry out these services? Mr Coates said there was no reason for the State to intervene. Capital was required, and it was better to leave the matter with private enterprise. . . The Leader of the Opposition (Mr M. J. Savage) said the Bill contained the framework of the control necessary for the transport service of the future. He made a plea for State enterprise. Aviation was going to play a large part in the transport of the future, and the State should get in “on ground floor.” One could not imagine private enterprise establishing aviation services and then handing them over to the State. He reminded the Government of what had happened in connection with broadcasting, and said that should be a lesson for the future. In the past co-ordina,tion of transport had not been carried far enough. He saw nothing objectionable in the Bill, but was pleased that evidence would be given by interested parties before the measure went through. Sir A. E. Ansell thought it was undesirab'e that the State should take over the development of air services. He asked the Minister if preference would be given overseas or local interests when applications for licenses were made. He suggested that local companies should obtain substantial consideration. Sir Sullivan said that if the Government was to take over services after they were established it would have to pay large sums by way of compensation. OBJECTION TO BOARD. Sir S. G. Smith said his objection to the Bill was that the Transport Board had the right of granting licenses. It would cost 1:50,000 to establish a service to operate between Auckland and Dunedin, and because of the board’s constant consideration for the railways the tiling would be killed at the start. He was in favour of the licensing of machines, but asked for time to give the people affected an opportunity to studv the provisions. Sir R. SlvKeen thought the Bill should be sent to a committee. The Government 1 Had not spent more money on the development of aviation in the aggregate than local bodies, and they should be considered. He was doubtful if the granting of monopolies on . one or two routes to certain companies would be in the interests of aviation or New Zealand. He thought the time would come when there would be nation air services. The time was opportune for the State to establish its own services, but they did not want a repetion of the broadcasting experience, when public opinion forced the Government to take over the service. Mr A. Harris also doubted the wisdom of handing control of aviation to the Transport Board. He could not conceive that the policy followed by that authority would be in the direction of encouraging air services. Mr A. J. Stallworthy said he agreed with the action of the Minister in taking time by the forelock and safeguarding the future. He supported Mr Smith and added that they were putting too much power into the hands of bureaucrats. The over-capitalised railway service should not be supported to the detriment of the rights of people follower fares are cheaper transportation. Mr A. S. Richards said no company could be expected to establish a service unless it had security of tenure. Therefore, he urged the Government to take the ’ responsibility for that service, which must play an important part in the transportation of the Dominion. The Government should not risk a company demanding substantial compensation, as it probably would do if it were granted a continuous license. FORETELLING THE FUTURE. Rev. C. Carr also complimented the Minister on getting in early. He could appreciate the difficulties created by conflicting interests in co-ordinating transport and wondered if it would be possible to co?ordinate road and air services. He was afraid, with the rapid development of air transport, that same of the older services would be displaced. It seemed to him that the railways were doomed. He thought that civil aviation should be internationally controlled and lie hoped that provision would be made for appeal in cases where licenses were refused to a separate, independent body. He suggested that private shipping companies should bo brought into line with other transport organisations. Mr W. E. Barnard said the Bill was necessary and he was pleased to see that civil aviation would be under the control of a civil authority and not the military. . . . ~ , , Mr Coates, m reply, said that private enterprise could do the pioneering work pretty well. Licenses could be granted for a period up to five years, and he thought they would only get an efficient organisation established if

time was given to develop properly. The Transport and Co-ordination Boards had been criticised, but he thought that the majority of people favoured those boards. It had been suggested that they had done nothing, but of some 48 services previously plying between Auckland and Hamilton, there were now only four or six. 'I lie Bill was iriginal and not copied from others, and improvements might be effected. Aero clubs had shown great interest and had sent for copies of the Bill. The Bill was read the second time.