Don Randall (Canning, Liberal Party, Shadow Parliamentary Secretary for Energy and Resources) Share this | Hansard source

This evening, I wish to raise the debacle that is Perth airport and the likelihood that significant and long-overdue developments will be strung out. I have raised this matter repeatedly with the Minister for Infrastructure, Transport, Regional Development and Local Government, the Prime Minister, the airport operators Westralia Airports Corporation, Qantas and the coalition when they were in government, and I am raising it again now.

While the draft 2009 Perth Airport Preliminary Draft Master Plan was released last week, all indications suggest the planned $1 billion overhaul could be delayed by at least five years, supposedly as a result of the credit crunch, which has ravaged Westralia Airports Corporation’s investments.

Like many Perth travellers, I have been eagerly anticipating the redevelopment of the ‘third world’ Perth airport that WAC aptly named ‘Vision for the Future’. That is it in a point; it is a mirage. The truth is that I should not have to have this debate now. If WAC had not been asleep at the wheel, major upgrades would not be in this cloud of doubt. When passenger movements and aircraft traffic were on the up-and-up a decade ago, and even five years ago, they should have had lift-off. It is no secret that the airport is shambolic. Only 64 per cent of flights leave Perth airport on time—this means that more than one third do not. The morning logjam is phenomenal, with 70 aircraft taking off between 5 am and 7 am. There are frequent traffic jams on the tarmac where passengers often have to disembark because there is little open space and few gates. The 2009 master plan extends the time frame for the major domestic and international terminal consolidation from between five and seven years to more than 10 years. To the Australian last week, WAC CEO Mr Geatches conceded there would be some issues meeting their own timeframes. He said:

Certainly, when we announced our plans we were flat strap and in the middle of a historic period of growth, and boom conditions in WA.

And when pressed for giving time frames we said we expect five to seven years.

Now there’s no doubt that this softening will cause that to slip to some degree …

Airport executives have said that they are making arrangements to move forward. However, international ratings agency Moody’s said that the time frame for merging the domestic and international terminals could expand to well beyond the planned 2013, stating:

Major capital expansion—in the absence of an improvement in market conditions in agreement with airlines—is not expected to occur as it could pressure the WAC’s credit rating.

The financial crisis is just a convenient excuse. Not only am I concerned about the delays to redevelopment but, under the circumstances, it appears that, when or if plans proceed, they could be significantly watered down. When Westralia unveiled its redevelopment plans after some sharp criticism from coalition members and former WA Premier Alan Carpenter, there were grand plans that it was to be among the best airports in the Asia-Pacific region.

Recently the West Australian newspaper reported that it could now be a C-class airport, which is minimum standard rating under the International Air Transport Association standards. Originally, it was to have 44 aerobridges; now the new terminal will have only 20 to 25 in its plans. That means passengers will continue to walk to their aircraft on the tarmac in all sorts of weather conditions.

While investment performance may be lacklustre, airports are profitable. This may be because airports like Perth are gorging on commercial property development rather than the core business of aviation services.

Perth airport is a money maker. In the financial year to June 2008, the airport recorded a profit of $84.5 million—an increase of more than 45 per cent on the previous year. Perhaps the beneficial owners and chairman David Crawford are trousering the profits rather than reinvesting them back into the airport.

I acknowledge that some improvements—in other words, Qantas $50 million terminal upgrade, baggage carousels and parking—have been made at the domestic terminal. However, these are predominantly cosmetic and have not resolved the underlying problems of capacity. There is increasing pressure on existing infrastructure and no real vigour from owners to make the necessary changes.

Both state and federal governments have committed to major investment in the surrounding road network, particularly the Tonkin and Leach highways. WAC must come to the party. Surely the profits of a 99-year lease are enough incentive to keep these things moving. The airport owners need to provide a strict time frame for the redevelopment, including key progress indicators. I will be seeking advice on WAC’s obligations under the current 99-year lease and the federal government’s ability to enforce those obligations or, alternatively, have their lease rescinded. It is now time that WAC were put on notice, and by its own admission—(Time expired)

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