Question on Notice regarding the Busselton-Margaret River Regional Airport expansion, specifically concerning the Minister's knowledge of the contract signing and the City of Busselton's obligations under a financial assistance agreement.

AnsweredQoN 901Legislative Assembly
Asked
7 November 2018
Portfolio
Regional Development

QuestionView source ↗

BUSSELTON–MARGARET RIVER REGIONAL AIRPORT
EXPANSION
901. Mr D.T. REDMAN to the minister representing the
Minister for Regional Development:
I refer to the City of Busselton
signing a contract for the construction of the new Busselton–Margaret
River Airport terminal building in January this year and confirmation by
attendees that the CEO of the South West Development Commission also attended
an Australian south west tourism forum in Bunker Bay on 2 February 2018 when
the signing of the contract was publicly announced.
(1) Why did the
minister, in response to question without notice 1052 in the Legislative
Council on 31 October, say that the CEO was not aware of the signing of the
contract until after the minister's meeting with the city on 3 February?
(2) Does the
minister concede that her request of the city not to proceed with the
construction of the terminal building was made with the full knowledge and
oversight of her agency of the City of Busselton's activities up to and
including the signing of the contract?

AnswerView source ↗

(1)–(2) The
CEO of the South West Development Commission has advised today that although
she was present at the south west tourism industry forum on 2 February 2018,
she has no recollection of an announcement by the City of Busselton relating to
the terminal construction contract; nor did she become aware that the city had included a reference to the signing in
its community newspaper dated 2 February 2018 until after the minister had met
with the shire mayor and CEO on 3 February 2018. Had she been aware of the contract
signing, she would have advised the minister in advance of her meeting with the
city. The South West Development Commission CEO was advised directly by
the CEO of the City of Busselton of the signed contract on 5 February 2018. The
minister was subsequently advised. The fact that the City of Busselton publicly
acknowledged the awarding of the design and construction of the terminal prior
to consulting the South West Development Commission was a breach of its
obligations as a recipient of state funding under
the financial assistance agreement held with the state. I understand that the
South West Development Commission and the City of Busselton work
constructively to implement a solution aimed at mitigating financial exposure
for the state whilst continuing efforts to attract an airline to the upgraded
airport. Our government is committed to advancing this project provided there
is a credible use for it.

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