Opponents call for Govt to defer decision on Qantas

By NZPA

Wednesday 11th December 2002

A coalition of interest groups opposed to the proposed alliance of Air New Zealand and Qantas today called on the Government to delay its decision on the deal.

The Government, as Kiwi share holder in Air New Zealand, has said it would make its decision on the deal between December 16 and 18 on whether it believes the deal meets national interest criteria.

The opponents, led by former Wellington mayor Mark Blumsky, stockbroker Andrew McDouall, Consumers Institute chief executive David Russell, economist Brian Easton, merchant banker Lloyd Morrison and Wellington doctor and activist Ian Prior, compiled a report which they presented to Prime Minister Helen Clark today.

The group, called "Debate Air New Zealand", called on Miss Clark to "make space for a democratic process" by deferring any Government decision on the Kiwi share until after the Commerce Commission has investigated the proposal.

A spokeswoman for Finance Minister Michael Cullen agreed that in effect the Government's decision next week would be its final say on the issue -- less than a month after it received the proposal.

The group said it would provide a voice for "the many New Zealanders who have concerns about the Qantas-Air New Zealand proposal".

It said the airlines only this week made their proposal to the Commerce Commission and "there is no justification for such haste".

Mr Blumsky said the group was not claiming it was a bad deal but there had been insufficient time for public scrutiny. It said the public had been swamped by the airlines' public relations campaigns that painted an overly rosy view of the public benefits.

"We are sure that the process being followed is fundamentally undemocratic and needs to be slowed down if the public is to have any say in these decisions, which affect us all."

The group criticised Dr Cullen as "an uncritical advocate for the Qantas plans".

It said Transport Minister Paul Swain's national interest decision would pre-empt the Commerce Commission's decision, which will go beyond competition issues to see if there is an over-riding public benefit.

The group said New Zealand had a sorry tradition of governments rushing major decisions that caused long time harm to the country. It wants the issue taken on by a parliamentary select committee.

Mr McDouall, who said New Zealand investors could fulfil Air NZ's capital requirements, called for Treasury papers on the national interest question to be released.

Mr Easton said most of Air NZ's problems stemmed from Australia's decision to renege on an open skies agreement with New Zealand eight years ago.

"That's where all the problems start. Australians have a habit of bullying."

The Commerce Commission may not be the right body to determine the national interest question as happened when Fonterra was formed.

"It has to act as investigator and judge and that is inappropriate."

"The only people really competent to make the decision are the ones we appointed to parliament," he said.

At the least, separate legal counsel should be appointed to argue the national interest cause.

Mr Easton said Air NZ bought Ansett in a hurry and it was "a dog".

The Think Big experience should have taught people to be wary of overly optimistic economic forecasts that turn to dust.

Asked about some of the bedfellows who Mr Easton was with on the issue, he justified it by saying: "If you are doing the honourable thing, you can shack up with an armaments manufacturer."

A website, www.debateairnz.co.nz has been set up for people to register their protests.

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