Govt. May Offer Some T.E.A.L. Shares To Public

Press, Volume C, Issue 29501, 1 May 1961, Page 12

Govt. May Offer Some T.E.A.L. Shares To Public

* ~iHe PTW special Asm WELLINGTON, April 30. The Government had not considered the possibility of offering New Zealanders an opportunity to invest in Tasman Empire Airways, the Minister of Civil Aviation (Mr McAlpine) said at the week-end. hi-i. I t■ -n I

“That is a possibility we may look at it if there seems to be some demand,’* he said, “but the Government would have to retain majority control—there would be no question of selling the airline.. “We should also have to consult the Opposition. “When, some years ago, we planned to sell the National Airways Corporation to the public, the Labour Party stalled the plan by immediately promising to renationalise the corporation when it gained power.”

(The Deputy Prime Minister (Mr Marshall) during the election campaign last November said a National Government would offer some stock in N.A.C. and in the Bank of New Zealand to the public.) Mr McAlpine may soon call for reports on a measure of integration for N.A.C. and T.E.A.L. “If economies can be made,’’ he said, “we shall look at It “I still believe It may be possible, for example, to have a joint board of directors Without impinging on the efficient running of either enterprise.” Mr McAlpine said the Ansett offer to buy T.EA.L. and its overtures for Tasman rights had been rejected. Under the recent agreement with the Australian Government, airlines other than T.E.A.L. and Qantas

were forbidden Tasman traffic rights till 1964. After that, the Tasman would probably have to be opened to full international competition and a fresh multilateral deal would have to be negotiated Mr McAlpine said New Zealand could be flying to the west coast of the United States by 1964. A new civil aviation agreement, concluded with France last year, gave T.E.A.L. the opportunity not only to maintain its “Coral Route” service to Tahiti, but to fly to Hawaii and California. Details of the deal have been withheld till negotiations with the United States can be completed. They were opened last year but suspended because of the change in United States federal administration. “Obviously," said Mr McAlpine, “this is not a matter of great urgency.”