Air NZ row puts contracts at risk
A report in The Dominion Post says that an escalating trans-Tasman spat is placing tens of millions of dollars of Air New Zealand contracts at risk.
There was no let-up in the war of words between senior government ministers and Australian Foreign Minister Alexander Downer yesterday, with Defence Minister Phil Goff accused Mr Downer of going off “the deep end”.
Deputy Prime Minister Michael Cullen linked the Australian’s reaction to the longstanding apple row, and Mr Downer suggested Australia did not need the aggravation of being dragged into domestic New Zealand politics.
“I can tell you, we’re ducking out of it,” Mr Downer said. “We don’t want anything to do with it.” “So our troops will go on other airlines, they won’t go on Air New Zealand.”
New Zealand and Australia have been embroiled in a spat over Air New Zealand arranging charter flights for Iraq-bound Australian troops.
National Party foreign affairs spokesman Murray McCully said yesterday that the row was threatening tens of millions of dollars worth of Air New Zealand contracts with the Australian Defence Force.
The contracts included aircraft engineering for the Australian Air Force and work on gas turbines on Australian frigates.
Air New Zealand would not comment on the row yesterday.
The Australian Defence Force referred comment to Mr Downer’s office.
Mr Downer summoned New Zealand’s high commissioner, John Larkindale, for a dressing down last week and told him the Australian Defence Force would not use Air New Zealand again.
Mr Downer appeared to suggest yesterday that the ban would be limited to troop movements.
Mr Goff accused Mr Downer of over-reacting to controversy in New Zealand, after Mr Downer labelled comments by the New Zealand Government “unfriendly”.
“I’ve known Alexander as a colleague and a friend for some time.” “Sometimes he goes off the deep end a little – he did on that occasion,” Mr Goff said.
“In this instance, he is wrong.” “This issue was not about Australia, it was never about Australia and shouldn’t have been taken by him as in any way reflecting on Australia.”
Dr Cullen appeared to link Mr Downer’s comments with New Zealand’s case against Australia at the World Trade Organisation over apple access, announced yesterday.
“It’s also true that Mr Downer represents an apple-growing electorate and would be one of the main people keeping New Zealand apples out of the Australian market.”
Report by The Mole
John Alwyn-Jones
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