ASU:Government Must Protect Airlines

Date: 28 February 2002

ASU Secretary Michael Want has condemned the Federal Government over their handling - or lack of handling of Ansett. According to Mr Want the Government is responsible for the aviation sector and as such should have had an active involvement in protecting the airline.

"Last September thousands of Australians lost their jobs when Ansett collapsed however Mr Howard was too busy with his election campaign to take a keener interest. He did promise however that the first thing he would do when he won Government would be to 'fix Ansett.' It seems the rest of Australia misunderstood what Mr Howard meant by 'fix'," said Mr Want.

"This is another example of the cynical approach of our Prime Minister. Yesterday on national television John Howard actually hinted that the Federal Government had been deliberately excluded from the negotiations over the rescue of Ansett. Once again it seems Mr Howard is claiming the Hogan's Heroes defence of 'I know nothing'. Trying to blame everyone else for his lack of leadership and control over Government policy."

"It seems he had plenty of involvement when the sector was being ripped apart by de-regulation. His government stood by, watched and encouraged the sector to cannibalise itself."

According to Michael Want the collapse of Ansett and the loss of jobs must be blamed on the price wars and government policy where carriers were offering unsustainable prices to attract market share and that the only way to save Australia's aviation sector is by introducing fares regulation.

"This is a major contributor to the current crisis in the sector," said Michael Want. "We need a central body setting a minimum level under which prices should not be allowed to fall. It is not a difficult process to determine a minimum fare which needs to be charged in order to keep an airline viable - this includes fair and equitable wages and a proper degree of safety," said Mr Want. "

Mr Want believes the Federal Government must look at regulating the sector otherwise there will be no Australian airlines left. "No one denies there must be competition, however when competition leads to denigration of both safety and services then it ceases to be an advantage for customers."

Mr Want points to the demise of Compass, Impulse and now Ansett to emphasise the Union's position.

Mr Want admitted that like all Australians he was bitterly disappointed about the last minute collapse of the Tesna deal. "As usual it is workers who have to pay the price. Not only the workers directly employed by Ansett but all the workers whose jobs will now be under threat from the flow on effect of Ansett's collapse and their inability to pay all creditors. If a creditor doesn't get paid they often recoup their loss by putting staff off or cutting back hours, especially in rural communities where things are already tough."

Mr Want emphasised that the airline sector is a responsibility of the Federal Government. "The government must play a role in setting realistic sustainable prices."

The outcome of this action would be fair competition based on product and service, with income and job security for employees. "This would also flow on to the tourism, transport and the hospitality sectors."

Mr Want says the issue now is finding employment for those out of work following the collapse. "Ansett customers will move to Qantas and Virgin. We will be requesting that Qantas, Virgin and regional airlines such as Kendell employ the highly qualified and dedicated Ansett staff."

For more information please contact ASU Branch Secretary Michael Want on (02) 9265 8211 or 0409 128 164

For further information

Contact:	Michael Want
Union:	Australian Services Union NSW Clerical & Administrative Branch
Phone:	(02) 9265 8211
Email:	office@asuclerical-nsw.asn.au
WWW:	http://asuclerical-nsw.asn.au/

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