AUSTRALIAN AIRWAYS

Wanganui Chronicle, Volume 89, Issue 299, 19 December 1945, Page 5

AUSTRALIAN AIRWAYS

RECENT JUDGMENT MAY BE A LET-OUT MINISTERS BECOMING LUKEWARM ON STATE CONTROL Recd. 5.5 p.m. Sydney, Dec. 18. The Federal Cabinet this week will consider what it is going to do about legislation to nationalise the air services. Last week the High Court decided the Commonwealth has no power to prevent private companies operating. Broadly, the judgment is understood m Canberra to mean, firstly, that there is nothing in the Constitution which will present the Commonwealth Government from operating a system •of Commonwealth air lines if it wishes Io do so, secondly, there is nothing in the Constitution which empowers the Commonwealth Government to forbid private operators from conducting air lines if they desire to do so, and are prepared to make the necessary arrangements.

These findings agree with forecasts made in Federal legal quarters even before the hearing began, and the judgment is being accepted in Federal official circles with less concern than the recent decision casting doubts on the validity ot the Commonwealth social services.

The Prime Minister, Mr. Chifley, declined to comment on the airlines judgment. The Canberra correspondent of the “Melbourne Herald" says there is reason to suppose that the judgment is something of a relief to the Government. The decision embodied in the National Airways Act was taken hastily by an incomplete assembly of Federal Cabinet against a strong recommendation of departmental advisers. Many sponsors of the proposal have since become lukewarm, and it has been an open secret that they would welcome some signified avenue of retreat, should it be necessary, in a final analysis.

At the same time the Commonwealth Government, despite the judgment, probably still has extremely wide nowers to proceed with its plans, should it wish to do so. Government circles have pointed out consistently that although the Act may be invalid, operation of the airways system depends vitally on ancillary services, such as aerodromes, meteorological ser vices and radio, and other navigational aids. These aids, the use of which could be withheld from a private company, are provided by the Commonwealth, and their cost would he outside the economic reach of any private operator. Moreover, under the prevailing conditions the economic success of airways operation is, in the main, contingent on either subsidies or mail contracts within the power of the Commonwealth Government to grant, or withdraw. It is suggested that although the Commonwealth has been shown by the High Court ruling to lack the power to exclude a private operator from any route by a direct ban, it still possesses all the power necessary to do so by the Imposition of economic sanctions. It does not follow wthat Cabinet will do this, and the recent lukewarm attitude of some Ministers suggests that abandonment of the drastic modification of the airways plan will be considered.