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It was based on a proven safe system from the USA and Canada. It allowed Australia to move away from the very expensive duplicated FS and ATC system that existed prior to 1991.
You seem to be ignorant of the fact, Dick, that the US and Canada has a dual FSS and ATC system. It works very well providing the aviation industry with a good service.
FS in Australia did not provide the same service as ATC so how was it duplicated? Sure it was a top heavy Public Service organisation that needed cleaning out, but kill it off completely, why?
Also, you're whole idea of NAS (or is it NAS2B ?) is not based on sound reasoning considering Australia's airspace structure is completely different than the US. Do you want to introduce FAA standards into Australia?
CASA did not get it right when they introduced your NAS 2B , aka Class D, procedures. No matter how good your intentions were.