AIR SERVICES

Wairarapa Times-Age, 19 May 1938, Page 8

AIR SERVICES

INCREASE IN BRITISH SUBSIDIES

QUESTIONED BY LONDON MEMBER

CONFERENCES ON TASMAN DEVELOPMENT

(Recd This Day, Noon)

LONDON, May 18.

The new secretary for Air, Sir Kingsley Wood, was cheered in the House of Commons on rising to move the second reading of the Air Navigation Bill, which increases from £ 1,500,00 to £3,000,00.0 subsidies to air transport. Additional financial assistance is to be given on routes outside Europe to the amount of about a million sterling and s the greater part will be concentrated on Empire Routes. A Labour member, Mr F. Montague, moving the rejection of the Bill argued that Government aid to firms, operat-

'g for profit was illogical and contrary to the public interest. Mr A. M. Lyons asked what amount was allowed on the regular service between Australia and New Zealand and argued in favour of night flying on the Empire services. He said the. aim of Parliament was to link up the Empire and bring the longest distances into the shortest time.

Captain H. H. Balfour (Under-Sec-retary for Air), in reply, said the Government’s policy was to temper monopoly with a reasonable amount of competition. Imperial Airways was really a public utility company and was in a better position to function in the commercial world than a Government Department. Profits were controlled, but any loss fell on those venturing this enterprise.

The Government was reviewing the question of the Australia-New Zealand service and Sir Kingsley Wood was meeting representatives of the Dominions. ' ■