SUBSIDY OR PAY.

Star (Christchurch), Issue 20058, 22 September 1920, Page 2

SUBSIDY OR PAY.

SOCKBURN aviation SCHOOL, (From Our Correspondent.] WELLINGTON, September 21. 'ls it o> fact,” asked Mr Howard in the Hout© to-day, "that tb© Aviation >sdi6ol at Sockburn is subsidised by the otato?” He added that tins Statement had been made and had been disputed, the suggestion being that tho money was paid for services rendered. Sir Heaton Rhodes replied that he had read an article to the effect that the Government payment -was not ft subsidy but a payment for services rendered, The . company had certain aeroplanes in store, also spare parts. Tho objection they took was that it was looked upon in the light of a subsidy. “ If .they are squeamish about it,” he stated, “ we may say it is partly for services, rendered, but it does not cost £l5O a month to store aeroplanes and spare parts.” The Minister was not clearly audible, but he was -understood to add that the Sockburn ( Company provided the services of mechanics, but very little use was, made of them. He had asked the company to submit information, then he would bo able to judge whether it was a payment or rent. It seemed a very good bargain for the company. Mr M’Combs: What is the difference between the money paid-to tho Auckland Aviation Company and that paid to Canterbury ? 1 • Sir Heaton Rhodes: Tho Auckland grant is in the nature of a susidy. I dob’t think they'have'machines at present. [Per Press Association.] ! Replying to Mr Howard in the Souse of_ Representatives this afternoon, the Minister of Defence said that the payment made to the Sockburn Aviation Company was, he thought, more in the nature of a subsidy than anything else, ihoiigh tho company seemed to think' it was in the nature, of payment'for. services rendered. The payment made to the Auckland Fljing Company was paid purely as a subsidy.