EMPIRE AIR SERVICES.

Taranaki Daily News, 29 December 1921, Page 2

EMPIRE AIR SERVICES.

FLIGHTS TO AUSTRALIA. ALTERNATIVE PROPOSAL. Sydney, Dec. 14. Details of the scheme for the establishment of an experimental airship service between the United Kingdom and Australia are contained in a report by the expert committee appointed by the British Air Ministry. This was tabled in the Federal Parliament by the Prime Minister (Mr. Hughes) last week. The scheme provides for the establishment of an airship service within two years, and proposes that a monthly service to Egypt would begin in March, 1922, and deme strational flights toward South Africa would be carried out during the next two or three months, and two demonstrational flights would be made to Australia. To reach this stage the estimated expenditure would be: Capital, £868,000; running ;expenses, £779,000. The capital expenditure would include provision of masts and bases, two mooring masts being erected in "Australia —one at Perth and one at Melbourne. The total estimated expenditure for the two-year period would amount to £1,647,000. This would provide for the erection in Egypt of a complete base with shed, and the necessary mooring mast stations in Egypt, South Africa, Australia and Ceylon, and would include the cost of the two experimental flights to Australia. If this scheme were adopted the amount of £1,647,000 would have to be found by the Governments of the United Kingdom, India, South Africa, New Zealand, Australia and the Federated Malay States respectively in proportions to be agreed upon. The report shows that, though it is not possible to set out precisely what these figures would be, the basis generally assumed during the discussions at the conference were Great Britain one-half and the Dominions served by the scheme one-half between them. This would mean that Australia’s share for the two-year period would be £200,000, or £lOO,OOO per annum.

An alternative scheme, for the conduct of the service by private enterprise, has been submitted by Mr. H. A. Ashbolt. This proposes the formation of a company with a capital of £1,500,000, and suggests that the Governments of India, Australia, South Africa, New Zealand and the Federated Malay States should subscribe half the first issue of capital, the balance being issued in shares to the general public. It is proposed that first issue payments should be made as follows: Indian Govern-r ment, £100,000; Australian Government, £100,000; South African Government, £100,000; New Zealand Government, £55,000; Federated Malay States, £20,000; general public, £375,000. The British Government contribution to the first issue would, under this scheme, be represented by ships, material, etc.

The scheme proposes a second of shares when required, the Dominion Government contributing the same as in the first issue, and Great Britain subscribing £375,000. The programme of this company would be to take over existing airships and attempt the experimental services to India, Australia and South Africa, establishing the necessary ground organisation for such services. The British Government’s contribution of ships, material, etc., to the first issue, would be considered a gift, and consequently not ranking as capital, but entitling the British Government to nominate two directors. Australia’s contribution, therefore, would amount to £lOO,OOO of the first issue of capital, and a further £lOO,OOO if the second issue were fully, called up. In addition, Mr. Ashbolt’s scheme includes the payment of a subsidy of £500,000 per annum for ten years, to be made up as follows: British Government, £250 for ten years; Dominion Governments, £250,000 for ten years. This subsidy, computed on Australia’s contribution to capital, works out at a liability of approximately £66,000 per annum.