Bob Baldwin (Paterson, Liberal Party, Shadow Minister for Tourism) Share this | Hansard source

As I was saying, when the Wheeler review of airport security and policing was released in 2005, it called for security costs at airports to be shared by governments, industry and the general public. It also stated:

It is neither practical nor desirable to expect 100 per cent security at regional airports. The sheer diversity of Australia’s regional airports makes the challenge of common standards of security an impossibility. Any protective security enhancements should be undertaken in accordance with a local threat and risk assessment and not instituted on the basis of what is sometimes media-driven scaremongering.

I am concerned that there are a handful of our smaller remote airports that may not meet the deadline imposed by this government to be security-screening compliant. I hope that we show them some flexibility and afford them some latitude in meeting this challenge. We want to aid rural areas by encouraging tourists, particularly international tourists visiting the outback, yet we face the same cost challenges in making this affordable. Similarly, we want our population to be distributed and remote Australia to have the same access to services that urban Australians enjoy. We have been innovative in dealing with these challenges. For example, the School of the Air and the Royal Flying Doctor Service are ways for remote Australians to receive decent education services and life-saving health services. The wonderful thing about technology is that it creates solutions to the tyranny of distance.

From listening to regional airline operators at the RAAA Summit held in Parliament House on 19 March this year, however, it is clear that they are facing a disproportionate economic challenge. From 1 July this year, regional carriers are facing what the Australian newspaper called a 'triple whammy' of imposts from the Gillard government. After the carbon tax, the second of these imposts will be the costs of the new fees they will be charged to cover these new airport security measures. If this was not enough, they are also facing the loss of the $6 million en-route subsidy scheme. Brindabella's Jeff Boyd has said that all these imposts will do is increase the costs of an air ticket because the companies have already introduced all of the environmental cost-saving measures they possibly can and new, more fuel-efficient aircraft are not currently available. The 'triple whammy' will therefore simply have the effect of reducing regional aviation's competitiveness against the automobile in what is also a price-point-sensitive market. New fees to cover airport security could lead to a $12 to $20 levy per passenger on Brindabella to cover the $4 million cost that Tamworth Regional Council may impose for building new baggage-screening facilities. Factor in the loss of the en-route subsidy scheme and the airline's recruitment levy to sponsor new pilots from South Africa, and flying begins to look much less attractive to travellers. It will not be long before demand is affected by the growing cost of a ticket, putting regional aviation businesses and employees' jobs at risk.

Regional, rural and remote areas are often heavily dependent on their regional air links for visitation, access to services only available in the cities, and tourism and economic development. Without such links these areas could be left condemned to isolation and economic stagnation. In 1997 there were 54 regional carriers operating 237 regional routes, and today I believe that figure is less than 20, flying around 125 routes.

As I said in my address to the RAAA summit, four European and two Australian carriers have gone out of business in the past six months, so we can see the effects that these cost pressures can result in, particularly at a time when the global industry as a whole is struggling with falling patronage and rising fuel costs. The costs of greater security being passed on to airports and ultimately airlines should therefore be carefully monitored and regularly reviewed.

The carbon tax will also make Australia a more expensive destination to visit, with tourism businesses being affected as disproportionately high energy users. The increased cost will not be felt just by international visitors but also by Australians wishing to holiday at home. It was Qantas's CEO, Alan Joyce, who told a Senate committee that his company estimated the cost would be as high as $115 million in the first 12 months. Virgin Australia has said their equivalent will be $45 million. Qantas said that $6.80 will be added to the cost of a flight from Perth to Sydney, and Virgin said that it will charge an average of $3 per flight to cover this Gillard tax impost. Is it any wonder, then, that there is a growing tourism trade deficit which the Transport and Tourism Forum expects to reach around $8 billion in the next financial year?

In conclusion, whilst the coalition welcomes measures that make it safer for people to travel to, from and within our country, the government should see this in the wider context of making Australia a more competitive destination to visit. Both the tourism industry and regional Australia deserve better from this government, a government that has made our nation more expensive to visit and which has been quick to take from the tourism sector, giving very little in return.

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