Ms CARNEY - 2001-10-24
On 16 October, a union representing Ansett workers appealed on radio for the Territory government’s help in the current crisis. They want your government to offer a financial inducement to the Ansett administrator, along the same lines that you offered to one of the world’s richest men, Sir Richard Branson. Will you listen to the appeals of these Territorians and their families and agree to a financial inducement to allow an A320 Airbus to travel to the Territory daily?
ANSWER
Madam Speaker, the proposals get more bizarre on a daily basis. If I can go to what the member had to say last night in Hansard: ‘The Queensland government recognises the importance of tourism and has offered to indemnify Flight West’. In a phone call to the Minister for State Development in Queensland today, 24 October - no support from the Queensland government other than to …
Members interjecting.
Mr STIRLING: … not giving any further support, no money, no rupiah, no dollars for Flight West out of the Queensland government. Where do you get this information? I remind you of the importance of misleading information in this Chamber. There is a little committee called Privilege Committee, it is quite a serious affair.
The Queensland government, we have dealt with that one. Now again – ‘the federal government has agreed to indemnify $380 000, again to assist Flight West’. Advice from the Commonwealth Department of Transport and Regional Services, as of today, 24 October, there is no firm proposal, there is uncertainty about how things might develop, there is no money, there is no rupiah, there is certainly, under the Rapid Route Recovery Scheme, no way of indemnification being offered. They will give a grant to get up and running, but they are saying no indemnification. So, again, information from the member is inaccurate, misleading which I again remind the member is of importance in this Chamber.
In relation to Flight West and the information from them last week, on 2 October I wrote:
The liquidation of Flight West has had a significant impact on the Territory, particularly on our tourism industry, in both the
Top End and Central Australia.
The situation has been exacerbated by the subsequent demise of Ansett Australia.
The Northern Territory government is interested in exploring what opportunities may exist for the utilisation of Flight West
aircraft and their crews in the immediate to medium term future.
I believe that an approach has been made by a consortium of Northern Territory and Queensland based businessmen to
purchase the Flight West operation. I understand that inherent in this offer is a requirement of government financial involvement.
Details of the offer are unclear at this stage, hence my contact with you.
In order for the Northern Territory government to consider this option, I would appreciate your urgent advice as to the status of
the Flight West liquidation, and that of the offer which I believe has been forwarded by a Mr Don Miller as the representative
of the consortium.
I look forward to your advice.
Dated 1 October, left my office 2 October. I table that letter.
On 19 October, a whole 17 days later, some eight days after we had worked through with Air North – what, the world’s richest man, the universe’s richest man? It is a great Territory company, Air North and we stand by …
A member: No, you were talking about Mr Branson.
Mr STIRLING: Oh, you were talking about Virgin before.
This is the answer we got from Flight West on 19 October, as I said, some 10 days after we struck a deal with Air North:
I refer to your letter dated 2 October and the subsequent contact made with your office seeking support for operations to
continue to the Territory.
In response to requests, and provided it is feasible, I am looking to commence within a few weeks, a regular Brisbane/Cairns/
Gove/Darwin route using F100 aircraft. I intend the operation would operate up until the end of December 2001…
So we were not talking about a sustainable long-term thing here.
… at which time it could be reviewed, depending on the circumstances of my administration.
As liquidator, I am concerned that such an operation is not undertaken at the risk of the creditors in my administration. However,
were the operation not to be cash flow positive, then I would need to bring the operation to an end earlier and hence the need
for government support.
Therefore I wish to ascertain, please, whether the Northern Territory government would financially support such an operation, say
either by offering a grant or pre-purchasing tickets. I have sought federal and Queensland government support.
It has always been my preference that a charterer be found to operate this run, but provided there was government support from
the Northern Territory as well as the Commonwealth and Queensland governments, I am minded to sell tickets as an alternative
to keep the aircraft in the air to service the needs of the community. It would also assist my sale of the business, which hopefully,
would lead to a long term operation being continued.
Please let me know if you see any way that your government could assist in the operation of this route.
Thank you for consideration of my request.
Somewhere between $65 000 and $85 000 per flight is the ask there to underwrite that flight. How on earth government could be expected to keep up that sort of cash flow, I know not. As we see here, seeking federal government support, Queensland government support. The member comes in here, the opposition spokesperson on tourism, and says: ‘Yes, they have $380 000 from the federal government. The Queensland government has offered to indemnify Flight West’. Not true, Madam Speaker. We would be the only government, at this stage, putting into that.
Unless the member has information which she can put on the table and convince me that my contact with the Commonwealth Department of Transport and Regional Services, as of lunch time, is incorrect, if she can convince me that our contact with the Minister for State Development in the Queensland government, as of today, is incorrect, I will be very reluctant to listen very closely to the information she brings to the Chamber in the future.
ANSWER
Madam Speaker, the proposals get more bizarre on a daily basis. If I can go to what the member had to say last night in Hansard: ‘The Queensland government recognises the importance of tourism and has offered to indemnify Flight West’. In a phone call to the Minister for State Development in Queensland today, 24 October - no support from the Queensland government other than to …
Members interjecting.
Mr STIRLING: … not giving any further support, no money, no rupiah, no dollars for Flight West out of the Queensland government. Where do you get this information? I remind you of the importance of misleading information in this Chamber. There is a little committee called Privilege Committee, it is quite a serious affair.
The Queensland government, we have dealt with that one. Now again – ‘the federal government has agreed to indemnify $380 000, again to assist Flight West’. Advice from the Commonwealth Department of Transport and Regional Services, as of today, 24 October, there is no firm proposal, there is uncertainty about how things might develop, there is no money, there is no rupiah, there is certainly, under the Rapid Route Recovery Scheme, no way of indemnification being offered. They will give a grant to get up and running, but they are saying no indemnification. So, again, information from the member is inaccurate, misleading which I again remind the member is of importance in this Chamber.
In relation to Flight West and the information from them last week, on 2 October I wrote:
The liquidation of Flight West has had a significant impact on the Territory, particularly on our tourism industry, in both the
Top End and Central Australia.
The situation has been exacerbated by the subsequent demise of Ansett Australia.
The Northern Territory government is interested in exploring what opportunities may exist for the utilisation of Flight West
aircraft and their crews in the immediate to medium term future.
I believe that an approach has been made by a consortium of Northern Territory and Queensland based businessmen to
purchase the Flight West operation. I understand that inherent in this offer is a requirement of government financial involvement.
Details of the offer are unclear at this stage, hence my contact with you.
In order for the Northern Territory government to consider this option, I would appreciate your urgent advice as to the status of
the Flight West liquidation, and that of the offer which I believe has been forwarded by a Mr Don Miller as the representative
of the consortium.
I look forward to your advice.
Dated 1 October, left my office 2 October. I table that letter.
On 19 October, a whole 17 days later, some eight days after we had worked through with Air North – what, the world’s richest man, the universe’s richest man? It is a great Territory company, Air North and we stand by …
A member: No, you were talking about Mr Branson.
Mr STIRLING: Oh, you were talking about Virgin before.
This is the answer we got from Flight West on 19 October, as I said, some 10 days after we struck a deal with Air North:
I refer to your letter dated 2 October and the subsequent contact made with your office seeking support for operations to
continue to the Territory.
In response to requests, and provided it is feasible, I am looking to commence within a few weeks, a regular Brisbane/Cairns/
Gove/Darwin route using F100 aircraft. I intend the operation would operate up until the end of December 2001…
So we were not talking about a sustainable long-term thing here.
… at which time it could be reviewed, depending on the circumstances of my administration.
As liquidator, I am concerned that such an operation is not undertaken at the risk of the creditors in my administration. However,
were the operation not to be cash flow positive, then I would need to bring the operation to an end earlier and hence the need
for government support.
Therefore I wish to ascertain, please, whether the Northern Territory government would financially support such an operation, say
either by offering a grant or pre-purchasing tickets. I have sought federal and Queensland government support.
It has always been my preference that a charterer be found to operate this run, but provided there was government support from
the Northern Territory as well as the Commonwealth and Queensland governments, I am minded to sell tickets as an alternative
to keep the aircraft in the air to service the needs of the community. It would also assist my sale of the business, which hopefully,
would lead to a long term operation being continued.
Please let me know if you see any way that your government could assist in the operation of this route.
Thank you for consideration of my request.
Somewhere between $65 000 and $85 000 per flight is the ask there to underwrite that flight. How on earth government could be expected to keep up that sort of cash flow, I know not. As we see here, seeking federal government support, Queensland government support. The member comes in here, the opposition spokesperson on tourism, and says: ‘Yes, they have $380 000 from the federal government. The Queensland government has offered to indemnify Flight West’. Not true, Madam Speaker. We would be the only government, at this stage, putting into that.
Unless the member has information which she can put on the table and convince me that my contact with the Commonwealth Department of Transport and Regional Services, as of lunch time, is incorrect, if she can convince me that our contact with the Minister for State Development in the Queensland government, as of today, is incorrect, I will be very reluctant to listen very closely to the information she brings to the Chamber in the future.
Last updated: 09 Aug 2016