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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2017-02-14 Daily Xml
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Globe Link Freight Airport

The Hon. A. PICCOLO (Light) (14:47): My question is to the Minister for Investment and Trade. Can the minister advise the house of the impact on future investment plans of a proposal to build a freight-only airport in South Australia?

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Small Business, Minister for Defence Industries, Minister for Veterans' Affairs) (14:47): I thank the member for his question. Yes, I can. It took only a couple of hours for the leader's grand plan for a freight-only airport at Monarto to be pilloried and pulled apart, not by us, but by the peak body that represents the industry that the opposition was claiming to help.

Mr Whetstone: How's Toowoomba going?

The Hon. M.L.J. HAMILTON-SMITH: I'll come to that. I'm glad that was mentioned. You will regret that interjection. The grand plan was called Globe Link, but might more aptly have been called the 'Monarto Mirage'. I give the member for Dunstan due credit for finally having a policy on something, but here's the tip: first talk to people who might support your idea. As members may be aware, the SA Freight Council's Evan Knapp explained to the leader on radio that, firstly, the majority of air exports from South Australia and every other capital city airport go in the belly of passenger aircraft.

Secondly, it is a combination of both passengers and freight that makes the air service viable. He also pointed out that freight-only airports have to be very, very large to be viable, such as the global logistics company DHL's hub that handles half of America's postal freight. It needs to be that big to be viable—strike one. Next up was the developer of a regional passenger and freight airport in Queensland, John Wagner. Wagner's $100 million airport in Toowoomba was said to be the inspiration for the Monarto Mirage, but he scotched the plan immediately, telling Queensland media, 'You need to have a mix of passenger and freight; you would never pay for an airport just on freight.' So I thank the shadow minister for his interjection—strike two.

As the mirage lost its shimmer and sheen, attention turned to the impact such an airport, such a poorly-constructed policy, would have on the business and investment prospects elsewhere in the state—and this is where it really hurts. The Australian Airports Association, which is the national industry voice for 260 airports and aerodromes in Australia, has written to the state government and advised that it was not consulted, that it threatens the viability of current facilities, and that it will have a negative impact on future investments. So with that triple play that is strike three, and Globe Link is headed back to the dugout.

The Airports Association's chief executive, Caroline Wilkie, points out that airfreight is a tiny fraction of Australia's freight sector, accounting for 0.1 per cent of Australia's international freight by weight. Due to the small volumes involved, airfreight is ideally suited for carriage in passenger aircraft, the association says. All this could have been found out by the leader before he announced the policy.

Airlines rely on both passenger and cargo revenues for route viability. So why has the opposition leader chosen Monarto for his airport mirage? Perhaps he considered it appropriate for a freight airport because it is in the middle of a zoo. What better way to care for jumbo jets? Put them in the middle of the zoo, the leader's jumbo jet airport in the middle of the zoo. There is a danger, of course, that the giraffes might have to duck. He did tell Chinatown that it was the Year of the Fire Monkey, not the Year of the Rooster; they may be at risk.

In summary, the Globe Link airport idea is a dangerous dud. No consultation, no research. It is not viable. It is wok-in-a-box economics yet again. Not only that, it is unnecessarily putting at risk 12,000 workers at Adelaide and Parafield airports. I say to South Australian businesses and workers: if you are involved in work at the airport, the leader is putting your jobs and your future and your business at risk.

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