Regional Air Services

The Hon. C. BONAROS (15:05): I seek leave to make a brief explanation before asking the Minister for Primary Industries and Regional Development a question about regional airlines and their importance to regional South Australia.

Leave granted.

The Hon. C. BONAROS: Rex Airlines has announced it will scrap its Whyalla to Adelaide flights from 1 July blaming an impasse with Whyalla council, which it says wants to impose a devious and underhanded passenger screening security charge of between $35 and $40 per passenger on the route. In a statement, Rex has accused the council of forcing the airline to pay new charges despite the federal government classifying Rex's regional aircraft routes do not need to have passenger security screening.

While the council announced the charges yesterday, saying costs were being passed on to airport users, including those flying with Rex Airlines and Qantas, after federal funding for mandatory screening at the airport ended, Rex said the impost was, and I quote:

…a devious and underhanded attempt by [the council] to force Rex to subsidise the…screening costs of Qantas whose services are legally required to be screened.

Mayor Phil Stone hit back saying that the council was not in a position to be able to absorb the additional costs and didn't think it was fair that it be passed on to ratepayers.

Whichever way you look at it, it's been described as another kick in the guts for regional South Australia, particularly given the state government's plan to build a green hydrogen hub in Whyalla and the extra demand for flights to the region that will bring. My questions to the minister are:

1. Has the government been approached by the council seeking financial support to ensure Rex doesn't pull out of Whyalla?

2. As the Minister for Regional Development, what options are available to her to ensure this crucial service is not axed?

3. Given Rex Airlines flights to Whyalla are used extensively for fly-in fly-out workers at the Whyalla steelworks and mining operations in the regions, what is the government doing to ensure flights to and from Whyalla are maintained at current levels?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:07): I thank the honourable member for her question. It is very disappointing to hear that Rex has announced that they will no longer be operating their Whyalla to Adelaide service from 1 July 2023.

I understand that the Whyalla council has been advocating to the federal government to resolve concerns around ceased funding for security screening at regional airports. I wrote a letter of support in March of this year on behalf of the state government in regard to Whyalla council's predicament, calling on Minister Catherine King to address this issue.

I am advised that Minister Bettison's office has engaged with Rex directly on this issue this morning and we certainly hope that the commonwealth government will continue discussions with Whyalla council to ensure that regional airports are properly supported.