Government to Take Over Air Services

Manawatu Times, Volume 70, Issue 277, 23 November 1945, Page 5

Government to Take Over Air Services

Million Pound Corporation To Be Set Up (Per Press Association.) WELLINGTON, Nov. 22. The establisment of a New Zealand National Airways Corporation to establish, operate and maintain air services within and beyond the Dominion, is pro vided for by the New Zealand National Airways Bill, which was introduced in the House of Representatives tonight. The Bill gives the corporation power to take over the assets of existing companies. Although the Leader of the Opposition (Mr. S. G. Holland) accused the Government of furthering its programme of ultimate Socialism, exchanges over the preliminary stages of the Bill were brief and the first reading was completed within ten minutes.

“I take it that this is Just one more step by the Government towards ultimate Socialism,” said Mr. Holland when the Bill was introduced by Gov-ernor-General ’ s message. ’ ’ He suggested that the Government would grab somebody else’s property and, if previous legislation was any criterion, give those from whom the 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 had apparently embarked, the Prime Minister should announce whose property would next be taken. Perhaps in view of the reception accorded to the previous measure, the Government would even at this late stage think it worth while to appoint some tribunal which could fix a fair price for the 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.

Hon. F. Jones said the Bill had 34 clauses. It provided for the establishment of 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 the air services of the Dominion and would have power to take over the assets of the existing companies. It would have power, with the Government’s approval, to operate services outside New Zealand. The other clauses were mostly machinery ones. Jtie did not think the Opposition would have complaint to find with the Bill. Mr. Holland: Who fixes the price at which the assets will be taken over? Mr. Jones: They can be taken compulsorily under the Public Works Act if necessary, hut I think we will be< able to come to an agreement with regard to taking over the assets of the existing companies. PROVISIONS OP THE BILL The Bill is described in the short titie as a measure “to make provision for the incorporation of New Zealand National Airways Corporation for the purpose of establishing and operating national air transport services 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 Zealad and other countries, and to make provision for other matters incidental thereto.

The Bill states that, with full regard to safety, efficiency and economy of operation, the corporation may do all that is necesary or convenient in connection with the establishment, maintenance or operation by the corporation of air services for the transport of passengers and goods by air within New Zealand. It shall be the duty of the corporation .to exercise these powers as fully and adequately as may be necessary to satisfy the needs of air services within New Zealand. The corporation may act as the agent for any organisation engaged in the provisions of air transport services. The clauses dealing with tho functions of the corporation in regard to air services beyond New Zealand, state that the corporation, with the approval of the Govemor-General-in-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 air services within New Zealand.

The corporation also with the approval of the Govemor-General-in-Council, may acquire any shares or other interests in any other organisation which is carrying on or 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 approval, enter into any agreement for the purpose of establishing and operating any such air service. MINISTER’S POWER OF DIRECTION.

The corporation may acquire by lease or purchase any land, buildings, shares, aircraft or other property whatsoever, rights or privileges, which it thinks necessary for the purposes of the Bill, but the corporation shall not, without the prior approval of the Minister in charge of the Air Department, purchase any land which costs more than £SOOO or enter into a lease of land for more than ten years. The corporation shall have the same liabilities as a common carrier and in the exercise of their functions the directors of the corporation shall have regard to any representations of the Minister and shall give effect to any decision of the Government conveyed to the directors in writing by the Minister. If the corporation notifies the Minister that an air service cannot be established and operated except at a loss after an allowance has been made for reserves, Parliament may appropriate moneys to meet such loss. The corporation is to be subject to the general legislation relating to air services. The Licensing Authority may issue an aircraft service license subject to such conditions as it thinks fit to impose, notwithstanding that other transport services may already he provided for the localities to he served. The Licensing Authority, however, may revoke any aircraft service license which authorises any other licensee to carry on a scheduled aircraft service which serves the same localities. The clause dealing with the 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 for the purposes of the corporation and which is owned by any company or other body that, on th 3 passing of the Bill, was the holder of an aircraft service license. The owner of any aircraft or property acquired shall he entitled to receive payment of the value of the property acquired, but failing an agreement its value 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 £1,000,000, 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 £500,000 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.