Don't blame Michael Cullen for Air New Zealand

Nick Stride, Business editor

Friday 14th September 2001

COMMENT

Finance Minister Michael Cullen yesterday took the opportunity to defend his government against critics who charge it with contributing to the Air New Zealand mess.

Some of his comments wash and others don't.

Dr Cullen insisted raising the Singapore Airlines shareholding cap had never been an issue. The problem had been invented by "people interviewing their own typewriters or biros."

"We have never taken the position the cap wasn't going to be lifted."

Hogwash. It is a matter of public record that the government last year - on another occasion, admittedly - refused to do just that.

Throughout the present crisis Dr Cullen has insisted frequently and publicly that his government would find it "very, very difficult" to lift the cap.

That the government has been, as Dr Cullen put it, a "punching bag" throughout the affair is undeniable. Media and opposition parties have been strident in criticising its "dithering and delay", claiming that, had Air New Zealand got more capital sooner, Ansett's bleeding would not have led it into voluntary administration.

That's less than fair.

For one thing there is no evidence to support the view a few hundred million from Singapore Airlines a couple of months ago could have turned Ansett Australia's $1.6 million a day of losses into profits.

For another, committing public money to support Air New Zealand while it was still committed to keeping Ansett flying would have put the New Zealand taxpayer in the position of subsidising Australian domestic travel.

The Australian government wasn't prepared to do that, so why should ours?

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