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QANTAS expansion plans involve privatisation: Moore



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JOHN MOORE MP COMMONWEALTH

PARLIAMENTARY LIBRARY C. I. S.

SHADOW MINISTER FOR

BUSI NESS and CONSUMER AFFAIRS QANTAS EXPANSION PLANS INVOLVE PRIVATISATION: MOORE

The bid by Qantas for up to 257. of Air New Zealand will place privatisation at the top of Qantas's corporate objectives, according to John Moore Shadow Minister for

Business.

"The market play worth SA 120 million will place serious strains on the airline's cash flow, at a time when Qantas is already fully stretched to make critical aircraft acquisitions.

"This latest move will enable Qantas management to press the Government further on the inevitable prospect of allowing private equity participation.

"Over recent years government's world wide have been divesting shareholdings in their national carriers, Australia has become the the odd man out.

"To operate successfully in a competitive market place, airlines like any other business need the capacity to raise funds from shareholders.

"Restrictions on capital raising will result in declining market share, especially when competitors are not similarly shackled.

"Last week I nominated Qantas as the first major enterprise to be sold under a Coalition Government, in this respect a sophisticated programme has been put in place to ensure the "fast tracking" of the sale", Mr Moore said.

21 August, 19B8 CANBERRA 95 9415

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