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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-06-23 Daily Xml
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Question Time

REGIONAL AIRLINES

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:24): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about regional airlines.

Leave granted.

The Hon. D.W. RIDGWAY: South Australia is one of the most centralised states. We have land of almost 1,000,000 square kilometres but most of the people, as members would be aware, are squeezed into a tiny pocket of the state called Adelaide. However, rural and regional South Australians, who are not large in number, contribute enormously to our state and the wealth of our state. Rural and regional South Australia, more than any other state, relies on regional airlines—and the regional airline business is doing it tough.

Regional Express (or Rex, as it is known) predicts a 30 per cent drop in profits this year. In 1984, members should be aware, there were 278 regional airports nationally with regular flights and now there are just 170. Nine regional airlines have folded or have been taken over by larger companies since 2001.

The Chief Executive of the Regional Aviation Association, Mr Paul Tyrrell, said this week's ash cloud was another big blow—even more reason for the federal government to maintain its regional subsidy, which is due to end at the end of next year. He said it could make the difference between routes staying viable or being scrapped.

My question is: has the minister—representing as she does rural and regional South Australians—made any representations to (1) the Prime Minister; (2) the Treasurer; (3) any other federal Labor ministers; (4) any South Australian Labor senators; or (5) any South Australian federal backbenchers demanding that the federal government maintain its regional subsidy and, if not, why not?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (14:25): I thank the honourable member for his most important question. Indeed, the airlines and airports of regional South Australia are critical gateways to our regions, particularly in terms of tourism but also in terms of being able to engage in business activities and access services and a wide range of different amenities, including service assistance, as well. We know that our airports are, as I said, a significant gateway economically, socially and in terms of accessing health.

We know that our Royal Flying Doctor Service relies very much on good runways and airfields that are maintained, so this government is very much committed to ensuring that our airports remain of a high standard. Of course, that is very difficult in a state like South Australia. We cover vast remote areas which makes it very challenging to continue to develop and invest in our airports and airfields. We have a fairly low population base and a vast area, including very remote outback areas, which have to be maintained.

There are a number of activities that I have engaged in, including using the regional development grants funding. Recently, I announced expansions to the Mount Gambier airport to enable larger planes to land there. That is a very important gateway to the South-East, and this will make a significant difference to the size of aircraft that could land in Mount Gambier. I have also recently announced $1 million funding to expand the Port Lincoln airport. Port Lincoln is one of our busiest regional airports and is a gateway to fabulous mining opportunities in and around Eyre Peninsula and the north.

I recently announced increased funding for that airport. I recently visited there and saw the fabulous designs for that proposed new airport. It will be a fantastic amenity. Not only will it be a very pleasant environment to arrive in, depart from and await aircraft in, but it will also have a significant impact on not just the economic but also social and other environmental aspects in the region, particularly enhancing opportunities to access the mining boom.

Of course, members would recall that, recently, I also announced funding to the Leigh Creek aerodrome to enable 24-hour refuelling there. Again, there are fabulous tourism opportunities. The flying doctor service will also benefit significantly from that. So, you can see that I have personally been very actively involved and committed to ensuring that we do continue to develop our regional airports and airstrips.

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