Fed: Lew-Fox say they don't want taxpayer-funded grant

AAP General News (Australia)
12-03-2001
Fed: Lew-Fox say they don't want taxpayer-funded grant

MELBOURNE, Dec 3 AAP - Ansett's likely future owners Lindsay Fox and Solomon Lew today
said they had not asked the federal government for financial grants as part of their bid
for the airline.

"At no time did we ever ask the government for any grant, for any cash payment or any
dollars from the taxpayers," Mr Lew told reporters today.

"What we asked for was business from the government, which will be forthcoming in our
opinion, and an assurance that there would be a trade practices review of the current
airline situation."

The comments follow those of Federal Treasurer Peter Costello yesterday that further
government financial assistance for Ansett and its regional subsidiaries was unlikely.

He said the government had decided to underwrite Ansett's worker entitlements for the
sake of the employees, but to go further was a "dangerous principle".

"It is a difficult and dangerous principle for a government to start picking up commercial
losses," Mr Costello told the Nine Network's Business Sunday program.

Mr Lew today said he and Mr Fox's Tesna consortium was not seeking an exclusive agreement
for securing government business.

He said Tesna wanted an assurance of $50 million in government business a year for
the next three years.

This was much less than last year, when Ansett secured $112 million of the the government's
$290 million air travel spending, he said.

Meanwhile, Mr Lew said an inquiry into trade practices was important for their business case.

But he said he was "not confident" about changes being made to the Trade Practices
Act to rein in market giant Qantas.

"At this point in time, the government has ruled out any changes or any protection
for Ansett and we are concerned with the fact that at this point in time, the competitor,
the larger competitor, has over 90 per cent market share," he said.

"And the deputy John Anderson did quote both to Lindsay and myself, and publicly, that
he would regulate it to 65 per cent."

Mr Lew and Mr Fox met this morning with Victorian Premier Steve Bracks.

They said the meeting was "very positive", but declined to comment on the substance of the talks.

"Those discussions are private at this point in time but there will be an announcement
shortly," Mr Lew said.

AAP bp/jlw/ldj/sb

KEYWORD: ANSETT TESNA

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