AIRWAYS CORPORATION

Gisborne Herald, Volume LXVI, Issue 19987, 12 July 1939, Page 7

AIRWAYS CORPORATION

AMALGAMATION SCHEME DILL BEFOUL COMMONS LABOUR ATTACK FAILS (Reed. July 11, 2.20 p.m.) LONDON. July 10. The reading of the bill to give effect to the Government’s decision to merge Imperial Airways and British Airways into one big public corporation to make further and better provision for the operation of the air transport services was moved in the House of Commons to-day by the Secretary for Air, Sir Kingsley Wood, who stated that the new corporation would continue the overseas services now run by the constitutent companies.

Arrangements were also already in contemplation for the inception of new services to various parts of the world. Chief among these were extended services in Europe, the trans-Tasman service, the service across the North Atlantic and the service to West Africa and across the South Atlantic.

A trans-Pacific- service was also in contemplation.

The bill was criticised by the Labour Opposition, principally in respect to its financial provisions, which it has contended, would start the corporation with an excessive capital burden. , Mr. IT. B. Lees-Smith (Lab., Keighley), moved an amendment hostile to the bill as failing to establish a unified system operable solely in the public interest, while permitting speculative private profits resulting in an excessive capital burC ''.Mr. g. It id ley (Lab., Clay Cross), supported the amendment. He, declared that the K.L.M. had outstripped Imperial Airways on tnc Empire routes and had made Imperial Airways the laughing stock of Europe until the Empire flyingboats were started. LieutenantColonel Sir Edward Grigg (Con., Altrencham), endorsed the suggestion that the Dominions and colonies should be represented on the board. Tile Labour amendment was defeated bv 209 to 130 votes and the bill passed the second reading.