smith is amazed

From Canberra Times 30/10/11

Qantas's decision to ground its fleet was a sign of desperation, former chairman of CASA Dick Smith said last night.
He said he laid the blame squarely at the feet of the Federal Government for effectively creating an ''open skies'' arrangement by allowing foreign airlines to land in Australia and compete directly with Qantas International.

''I totally blame the Government, because it's not telling the public the truth, which is if you open up to global competition you have to pay low global wages. And there's no two ways about it; it's not an opinion or a feeling - it is the simple fact,'' he said.

''The Government should make it clear and say, 'The Australian public want really cheap airfares that come from cheap global wages'.''

Mr Smith said Government policies had devastated Qantas' international passenger numbers and he was ''amazed'' it had survived this long.

''Eight out of 10 Australian international passengers don't fly Qantas,'' he said.

''The Australian public has decided to dump Qantas.

''This decision by Qantas today is an example of the desperation they are in, because they should close their international arm.

''There's a chance they could save it if they were allowed to do most of the maintenance off-shore and have their cabin crew off-shore.

''Pilots would have to work the same hours as those of Etihad or Emirates.

''Then it may have been able to be saved.

''I am amazed that Qantas International is still in business - I would have closed it three years ago, because I don't see how you can run an international airline with the Government allowing overseas airlines in.''

Mr Smith, founder of the Dick Smith electronics stores, said the Government's decision was similar to that which devastated Australian manufacturers of electronics.

''It's like when the Whitlam government said we should not have protection of the electronics industry and in 12 to 18 months they [Australian ones] had closed or gone broke,'' he said.


Mr Smith said many jobs in Australia were protected.

''Politicians are protected - we are not allowed to bring in cheap Chinese politicians to replace the ones we have,'' he said.

''You can't get a lawyer from China for $20 per day to do your conveyancing.''