Jibe disappears but Dunne firm

By ANNE BESTON and NZPA

A provocative statement from Australia's Deputy Prime Minister over the Qantas-Air New Zealand deal could not be traced yesterday.

John Anderson was quoted on a Radio New Zealand report last week saying it was in Australia's interests "to make sure many international airlines disappear over the next few years while Australia retains a strong flight carrier".

Mr Anderson's reported remarks were used by United Future leader Peter Dunne as evidence Qantas was selling the proposed deal differently in Australia than it was in New Zealand.

Mr Dunne's remarks drew a strong response from Air NZ chairman John Palmer, who demanded Mr Dunne retract them.

Mr Anderson's press officer had also rung Mr Dunne to flatly deny the Deputy Prime Minister made the remarks.

But Mr Dunne yesterday said he stood by his comments on the proposed deal and any demand that he retract his statements was absurd.

No trace of Mr Anderson's remarks could be found on Australian media sites. After expressing his anger at Mr Anderson's comments, Mr Dunne also cast doubt on the promise of 200 extra jobs in New Zealand if the deal went ahead and said the buy-in by Qantas amounted to a takeover because the two directors on the Air New Zealand board would need to sign off every decision. That effectively gave them veto powers.

Mr Dunne was visited in his Beehive office by an angry Mr Palmer, who said Mr Dunne's comments were misleading and "blatantly untrue".

Air NZ chief executive Ralph Norris also waded into the row, denying Qantas directors would have veto powers and reiterating the deal would create the extra jobs.

They would come mainly in engineering from Qantas' policy of placing 20 per cent of its heavy engineering maintenance work overseas. Air NZ would undertake 15 per cent of that work if the deal went ahead, rather than the fraction it had now, Mr Norris said.

The Government will announce on December 18 its interim decision on whether the deal should go ahead. It does not need Parliament's approval.