TASMAN AIR SERVICE

Otago Daily Times, Issue 22632, 25 July 1935, Page 10

TASMAN AIR SERVICE

KINGSFORD SMITH'S PLAN SUBSIDY OF £40,000 INVOLVED (Special to Daily Times) WELLINGTON, July 24. Sir Charles Kingsford Smith met Cabinet Ministers at Parliament House to-day and submitted to the Government of New Zealand his proposals inauguration of a regular trans-Tasman air service.

Although full details of the scheme were not disclosed officially after the conference, it is understood that Sir Charles suggested that a bi-weekly service should be established at a total subsidy cost of £BO,OOO a year to the Australian and New Zealand Governments on a 50-50 basis—that is to say, the New Zealand Government would pay £40,000.

It was contended that there was little difference between the amounts of mail at present transported across the Tasman. The service proposed, however, would he confined at first to the air transport of first-class mail, the postal charges to be determined by the Government. As regards the quantity of mail likely to joe carried in the initial stages of the service, it was explained that the proposal was to carry four tons of mail a week-

It 19 understood that an alternative service on a somewhat modified scale would involve the payment of a subsidy of £30,000 a year by the New Zealand Government. As far as can be ascertained, Sir Charles Kingsford Smith also suggested that the company which he represented, if its proposals were accepted, should be given protection for a period of five years. Questioned after the conference, the Acting Prime Minister, Sir Alfred Ransom, said the Cabinet, after hearing Sir Charles Kingsford Smith's full proposals in detail, had assured him that the scheme would be given consideration without undue delay. It would be necessary, however, to communicate with both the Australian and British Governments as all were concerned in the future development of Imperial air services. When that had been done the, Cabinet's decision would be forwarded to Sir Charles before his arrival in England.