❓ Mr Leary asks about protecting local government creditors and regional interests during Rex Airlines' voluntary administration. The Minister assures support for regional aviation and prioritizes regional WA's interests in discussions with the administrator, highlighting past investments and increased air travel.
AnsweredQoN 574Legislative Assembly
QuestionView source ↗
Rex Airlines
574. Mr Scott Leary to
the Minister for Transport:
I refer to the voluntary
administration of Rex Airlines and reports that local governments, including the
City of Albany and the Shire of Esperance, which are both owed in excess of
$400,000, are among many unsecured creditors potentially facing non-payment.
(1) Will the government commit to working with the
Commonwealth, administrators and the eventual buyers of Rex Airlines to ensure
that these local government creditors do not lose any funds they are owed?
(2) Will the government provide a formal assurance
that the interests of regional councils and communities will be protected in
the restructuring of Rex Airlines, including through any new service contracts
or guarantee arrangements created under its remit?
574. Mr Scott Leary to
the Minister for Transport:
I refer to the voluntary
administration of Rex Airlines and reports that local governments, including the
City of Albany and the Shire of Esperance, which are both owed in excess of
$400,000, are among many unsecured creditors potentially facing non-payment.
(1) Will the government commit to working with the
Commonwealth, administrators and the eventual buyers of Rex Airlines to ensure
that these local government creditors do not lose any funds they are owed?
(2) Will the government provide a formal assurance
that the interests of regional councils and communities will be protected in
the restructuring of Rex Airlines, including through any new service contracts
or guarantee arrangements created under its remit?
AnswerView source ↗
(1)–(2) I thank the member for that question.
There is no bigger supporter of regional aviation all around the state than
this government, as members know.. Under this government we have seen a
significant increase in regional air travel in Western Australia, backed partly
by the tourism portfolio, the Minister for Tourism and funds to support
regional tourism flights, but also our airfare cap that has supported a massive
growth in regional air travel.
In relation to Albany, Rex Airlines
went into voluntary administration. The federal government, through the
administrators, has been working through all the issues in front of it for the potential
buyer. I have had a briefing from my agency, but not a formal briefing, about
the new buyer and the issues that remain with that transaction.
I have always said—in
the past couple of days in two press conferences—that I will make sure
that the interests of regional WA are number one in our discussions with the
administrator about the potential buyer to make sure that we continue to
support key regional cities and towns, and that we can expect an equivalent or
even better service and capacity, particularly in a place like Albany where we
have seen near-capacity flights for a long time as more people have accessed
other air travel.
With regard to local governments,
it is a mixture. Many airports are owned by local governments and some are
owned by the private sector. We support local governments. I think we have
provided all up $14 million to the City of Albany for its airport upgrades. As
a state government, we have supported all local governments by increasing the
volume of air travel, therefore increasing the amount of landing charges that they
have collected, and we are also funding massive upgrades, including in the
Kimberley and in Albany.
We look forward to continuing
those discussions and, as I said, making sure that our regional customers and
residents have access to quality, affordable and accessible air travel. That will
continue to be a key priority.
There is no bigger supporter of regional aviation all around the state than
this government, as members know.. Under this government we have seen a
significant increase in regional air travel in Western Australia, backed partly
by the tourism portfolio, the Minister for Tourism and funds to support
regional tourism flights, but also our airfare cap that has supported a massive
growth in regional air travel.
In relation to Albany, Rex Airlines
went into voluntary administration. The federal government, through the
administrators, has been working through all the issues in front of it for the potential
buyer. I have had a briefing from my agency, but not a formal briefing, about
the new buyer and the issues that remain with that transaction.
I have always said—in
the past couple of days in two press conferences—that I will make sure
that the interests of regional WA are number one in our discussions with the
administrator about the potential buyer to make sure that we continue to
support key regional cities and towns, and that we can expect an equivalent or
even better service and capacity, particularly in a place like Albany where we
have seen near-capacity flights for a long time as more people have accessed
other air travel.
With regard to local governments,
it is a mixture. Many airports are owned by local governments and some are
owned by the private sector. We support local governments. I think we have
provided all up $14 million to the City of Albany for its airport upgrades. As
a state government, we have supported all local governments by increasing the
volume of air travel, therefore increasing the amount of landing charges that they
have collected, and we are also funding massive upgrades, including in the
Kimberley and in Albany.
We look forward to continuing
those discussions and, as I said, making sure that our regional customers and
residents have access to quality, affordable and accessible air travel. That will
continue to be a key priority.
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