STATE AIR SERVICES

Otago Daily Times, Issue 26545, 21 August 1947, Page 7

STATE AIR SERVICES

OWN OPERATION DESIRED OPPOSED TO COMMONWEALTH CONTROL Rec. 8 p.m. CANBERRA, Aug. 20. Stating at the Premiers’ conference that New South Wales was considering operating its own airlines within the State, the Premier of New South Wales, Mr James McGirr, refused to allow the Federal Government to establish its own intra-state air services. Mr McGirr said that his Cabinet was considering either, operating all New South Wales air services or taxing air transport companies to help the railway finances. The State Government was concerned over the inroads air transport was making in the railway system in which his State had invested £162.000.000 He said that he would

consider extending to the Commonwealth the same rights as those given private companies and later asked the Federal Premier, Mr J. B. Chifley, if the Commonwealth would consider entering into partnership with the State Government to operate all the air services in New South Wales. The Premiers of Oue°nsland, Western Australia and Tasmania offered to allow the Commonwealth to establish intra-State services in their States on the same terms as private operThe Premier of Victoria, Mr John Cain, criticised the Commonwealth airline losses and said that, as the States supplied the Commonwealth with balance sheets covering the operations of State railways, they wanted to know what profit or loss the Commonwealth was deriving from its air cervices.