Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Dunne alarmed by Air NZ papers


Dunne alarmed by Air NZ papers

United Future leader, Peter Dunne, said today his opposition to the proposed Qantas takeover of Air New Zealand had been confirmed by the partial release of the Treasury papers advising the Government on the deal.

"We are constantly being told by Air New Zealand that this is an all-or-nothing deal, that Air New Zealand will not survive unless we allow the rapacious kangaroo to gobble up the cowering koru-bearer," he said.

"Yet even the Treasury advice points out that letting Qantas into the New Zealand boardroom will not guarantee autonomy for our national carrier.

"Here's one quote: For Qantas, putting in $540 million provides it with board representatives to allow it to monitor Air NZ's performance and influence its strategy. It also restricts other airlines from entering into a strategic alliance with Air NZ.

"I emphasize particularly the references to influencing Air NZ's strategy and restricting other airlines. In effect, we are promoting an aviation monopoly for the benefit of Qantas - an airline whose history has never been one of helpful co-operation, but predatory competition with Air New Zealand."

Mr Dunne said he was struck by Treasury's blithe dismissal of the New Zealand capital markets as a source of re-financing for Air New Zealand.

"Another quote: Air NZ is unlikely to be able to source such a large amount of capital ($540 million) from the market - if it were able to, the bulk would probably need to come from the Crown as principal shareholder.

Even though some market participants have stated that Air NZ could source capital from the market, it would extremely difficult to get such a large amount given Air NZ's fragile position and the risky industry it operates in.

"That is certainly not the advice I have been getting from the New Zealand business community and I wonder just who Treasury has been talking to."

"Treasury's advice concerning Air New Zealand's future autonomy is simply alarming.

"A third quote: Air NZ's autonomy is a critical issue from both an ownership and regulatory perspective. Air NZ will need to ensure it has a strong negotiating position in its ongoing relationship with Qantas so that it can ensure Qantas's influence over it is kept to appropriate levels. It will inherently be in a relatively weaker negotiating position than Qantas since it has more of its business within the alliance and because Qantas can threaten it with increased competition.

"In other words, when you translate the Treasuryspeak, it simply means that Qantas is the same powerful bargaining position as an armed mugger 'Give me all your money or I'll shoot you.'

"I first raised these concerns in Parliament on August 28 last year and nothing I have seen or heard since has allayed my original fears."

Mr Dunne noted that submissions to the Commerce Commission on the proposed takeover close tomorrow and he hoped the Commission took careful note of the warnings hidden in the Treasury advice to Government.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election