Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Hansard source

I table a response to a question taken on notice during question time on 24 February 2021, asked by Senator Patrick, relating to the regional airline network support program and seek leave to have the document incorporated in Hansard.

Leave granted.

The answer read as follows—

Dear Senator

I am writing in relation to a question you raised regarding the Regional Airline Network Support (RANS) program during Question Time on Wednesday 24 February 2021.

Regional Express Airlines (Rex), along with all our aviation operators, continues to play an important role in the aviation sector during the COVID-19 pandemic. Our programs have supported Rex to operate more than 2,400 return services and carry more than 75,000 passengers since 28 March 2020.

The Australian Government is in regular contact with states and territories, including the South Australian Government, on the operation of the regional aviation network.

Airlines are receiving Government assistance under different programs based on their specific circumstances. Rex is one of 15 operators receiving funding to guarantee critical aviation services, particularly in regional and remote Australia, throughout the unprecedented downturn in aviation activity. This will ensure essential workers can travel domestically, support health transport services and distribute critical goods and equipment.

The funding available through the RANS program is provided to support the regional aviation market and is proportionate to Rex’s market share. Commercial activities such as raising equity to expand operations is different to the Government providing support to services that are operating at a loss in the current environment.

As I conveyed during Question Time, ultimately decisions on network configurations and scheduling are a commercial matter for airlines. The regional aviation network support does not compel airlines to fly particular routes however, the Government will continue to monitor the need for future support. In addition, the Australian Competition and Consumer Commission continues to monitor airline activity and publishes quarterly reports on airline competition in Australia.

The Government supports a competitive aviation sector, which will provide Australian consumers the best possible access to aviation services at an affordable price. I note that Qantas have announced that they are reviewing their network and considering additional service on any of the routes that Rex decides to discontinue - this includes the Adelaide to Kangaroo Island route.

The Government has also provided support to internationally reliant tourism regions, including Kangaroo Island, through the $50 million Recovery for Regional Tourism Fund. The Fund helps regions and businesses create and retain jobs by driving visitation, spurring demand and improving product diversity by driving interstate visitation. This will help these regions to achieve greater leverage from the domestic market and to help ensure there is a vibrant, internationally focussed tourism industry still in place when international visitors return. Up to $3.5 million in support is available for Kangaroo Island.

The Government has committed more than $2.7 billion to support the aviation sector throughout the COVID-19 pandemic. Our programs have been targeted, specific to the needs of Australian communities and developed in close consultation with the sector. This year will also see the delivery of the Government’s Five Year Plan for Aviation which will outline the national policies and reforms needed to support the sector through the challenging recovery period and beyond.

I trust this information is of assistance to you. I have provided a copy of this letter to the Deputy Prime Minister and to the President of the Senate, for their information.

Yours sincerely

Senator the Hon Michaelia Cash