Comment: Labour, The Alliance and The Greens - The Government That Has Almost Destroyed Our National Airline

By Ben Dutton, ShareChat Publisher

Monday 17th September 2001

The events over the past week have been tragic beyond words. The terrorist attacks on the World Trade Center and the Pentagon will forever leave its imprint on the consciousness of the world.

But while tragedy plays out in America, in New Zealand our problems amount to little more than farce. Through its blundering and stalling, the Labour/Alliance/Green coalition has come close to destroying Air New Zealand. Indeed, the airline may go into receivership yet.

Trans Tasman relations are at an all time low, with the Australian public, media and government baying for the blood of New Zealanders following the collapse of Ansett.

Thousands of Australians are out of work, and thousands of shareholders have seen the value of their investments all but destroyed.

Air New Zealand's and corporate New Zealand's reputation is in tatters. It will take more than just an advertising or PR campaign to make matters right again.

There are many parties to point the finger at and yes, they share the blame for events. The Board of Air New Zealand has presided over one disastrous decision after another. The whole incestuous and self-serving relationships between the directors of Air New Zealand, Brierley's, Singapore Airlines and the banks has contributed to the situation. The mechanical problems that grounded Ansett in Easter hastened that airline's demise. The unions have had a part to play with their strong arm tactics. Overall the situation is an absolute mess, with every party spinning their version of events, trying to get the public to side with them.

But ultimately the largest share of blame lies with the New Zealand government.

Three months ago, Singapore Airlines was prepared to pay $1.31 per share to increase its shareholding in Air New Zealand. But our government was unwilling to let a "foreign" interest gain further control over our airline and refused to raise the ownership cap.

Now, as events have unfolded, they have had to raise it anyway. And the shares are vastly cheaper, calling into doubt the "rescue" package that was announced last week.

Why wasn't Singapore allowed to raise its shareholding in the first place? Because of this government's deep anti-foreign, anti-business bias.

Jim Anderton and Rod Donald have made their hostility to foreign investment in New Zealand clear in the past. As for Helen Clark, it would appear that her attitude is no different.

So while the government dithered the market reacted and Air New Zealand's shares plunged. The government's aides forgot to tell them that the market hates uncertainty. And uncertainty reigned supreme.

How could the government have been so inept? How could they have slept when Air New Zealand burned? Their attitude has been arrogant and shows a total lack of understanding of the business world.

I'm angry because Air New Zealand shareholders, hard-working individuals like you and me have lost hundreds of millions of dollars. I'm angry because, at a time when Australia and New Zealand should be coming together and joining the rest of the world in grief, we have been torn apart. I'm angry because 16,000 Ansett workers don't have a job. I'm angry because our elected representatives haven't done their jobs.

The government will continue to deny its responsibility in this corporate disaster. Their spin meisters will work overtime pumping out the press releases, apportioning the blame to others while deflecting the hard questions.

Our government screwed up, and now New Zealanders have to pay. With our wallets, and our reputation.

Dark days indeed.

The ShareChat Community Responds:

Hans van Beek
Malcolm Cameron
Ben Dutton
Snoopy
Nick Kearney
Ian MacLachlan
ryanrite
G Stolwyk
noel.parker
Ben Dutton
acp
greg
Gary Wilson
ryanrite
john
geoff_julie
K & A Frankum
Stephen Dench
Colin Ross
Paul Menneer
Nick Kearney
Ruvin Gabriel
Malcolm Cameron
DR

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