H—3s

the main responsible or the ultimate financial results in the operation of the services. This may be inescapable if the country is to keep abreast of progress, but as any form of subsidy—concealed or unconcealed —can lead to the concealment of operational inefficiencies, an added responsibility is placed upon the management to satisfy both itself and the public that every care is being taken to avoid inefficiency and extravagance. The Board and the whole of the personnel of N.A.C. have been fully conscious of this responsibility. A fully qualified aeronautical engineer has been secured from Great Britain to take charge of the Engineering and Maintenance Division, and he has made an exhaustive and successful survey of the whole of this most important Branch. Prior to the employment of this engineer, the Corporation arranged for a visit by Mr. W. A. Baird, Engineering Manager of Qantas Empire Airways, who in March, 1948, reported, inter alia : The standard of general engineering maintenance throughout N.A.C. is as high as any other maintenance organization I have seen recently. The man-hours associated with the " Wright 1820 " engine overhauls are commendable ; so also are the man-hours involved in the " P. and W. Wasp Junior " engine overhauls ; the present inspection system is quite reasonable ; and the stores issue system. The standard of maintenance carried out on the airframes is also quite high when one considers everything associated with to-day's conditions. An independent consulting accountant of high standing was engaged to make a special survey and report on the Corporations' accounting system. Extracts from his report are given hereunder : After a close association with the day-to-day workings of the accounting routine, I am more convinced than ever that the book-keeping system in use at N.A.C. is very good indeed. I have no hesitation in stating that I would have been proud to have installed, or been associated in installing the bookkeeping system in operation . . . This is not a big accounting staff considering the enormous amount of detail work that necessarily flows through this office. In addition to these steps, the General Manager and departmental executives have been despatched to Australia on many occasions to attend air transport conferences and examine related aspects of the Commonwealth's airlines. The Board has from its inception appreciated and accepted its full responsibility for the safety of its operations and has kept closely in touch with world-wide practices and developments. The Board has consistently and whole-heartedly supported the management and executives concerned in their determination to preserve the absolute safety factor of the services. Large sums have .been spent on both equipment and training in order that this aspect of the Corporation's activities should be adequately and effectively safeguarded. Commercial air transport falls into two main categories : (a) its place in the internal transport system of the country, and (b) its place in strategic air defence. Two world wars have resulted in phenomenal advances in aviation. Self-preservation demands that nations must keep abreast of this progress. Modern aircraft and aerodromes with every scientific advance in navigational aids must be maintained. Commercial air transport is now recognized, and expanding rapidly internally and internationally throughout the world. Nowhere is its existence based entirely on commercial considerations. And yet in the field of transport there can be no question but that it is destined for still greater expansion ; in fact, it is impossible at this juncture to visualize its ultimate scope. Within the vision of transport authorities there is apparently no other form of transport that will supersede it as compared with the evolution that has taken place in surface transport from the horse-drawn coach to railways, ships, and motor-vehicles. There is no doubt need for co-ordination of the various forms of transport, but there must be taken into consideration factors other than commercial; the over-all economic life of the country, vastly improved communications, defence, and future potential of the various means of transport must be given weight.

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