Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Gallagher. Today, in Merimbula, the Prime Minister announced the Albanese Labor government will work with the administrators of Regional Express Holdings—or Rex, as it's commonly known—as part of an upcoming competitive sale process to ensure crucial regional aviation services continue beyond 30 June 2025. As the duty senator for most of New South Wales, I'm delighted that the government will back regional aviation, just like we back regional telecommunications, because we know our great country towns deserve quality services and connectivity just like our cities. Can the minister please provide further details of today's important—and, I'm sure, much welcomed—announcement.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator O'Neill for the question. It was an important announcement today. Again, the Labor government is standing up for regional communities and making sure that regional transport, including aviation services, is not reduced under this government. We believe in regional and remote communities and in the fact that they deserve reliable, affordable and accessible air travel. Today, the Prime Minister announced that we will support bidders in a second sale process for Rex Airlines to maximise the prospect of a successful sale. We have been clear that the Commonwealth is not a bidder in this process and that we want to see a successful, market led outcome, but this is an important signal to the market. We've been clear that if there is no sale we'll look at contingency options, including Commonwealth acquisition. This is because regional Australians deserve to know that we have their backs.

This announcement today, of course, builds on the announcement yesterday about ensuring regional services like banking are maintained in communities and on the important announcements by the minister for infrastructure today about the upgrade of regional airports—again, infrastructure that is essential not only for day-to-day air travel and transport but also in times of emergencies. We know those communities, Senator O'Neill, where you are the relevant senator rely so much on being able to, at short notice, ship in supplies and support at times of national emergency. We are very pleased to make these investments—certainly, the investments in airports are long overdue—and we believe, in terms of Rex, we need to make a very strong commitment to regional communities that we will maintain your air services, despite Rex Airlines going through a difficult time.

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order across the chamber! Senator Watt and Senator McKenzie, order!

Senator McKenzie, I particularly just called you to order. Do you have a point of order?

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

I would like Senator Watt to withdraw his remarks about me across the chamber over the last two minutes of exchange.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator McKenzie. I'm more than happy to ask him to do that, but I also expect that, when I personally call you to order by name, you come to order. Senator Watt, please withdraw.

Murray Watt (Queensland, Australian Labor Party, Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

I withdraw.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you. Senator O'Neill, first supplementary?

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Recently I was in Griffith, the home of Rex Airlines, and the community is very proud of that. What support has been provided by the Albanese Labor government to date to support Rex, and why is the government support for Rex so important, particularly for regional Australia?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

(—) (): I thank Senator O'Neill for the question. The announcement today comes on top of the Albanese government providing a loan of up to $80 million to keep Rex's vital regional routes operating until 30 June 2025 and also acquiring $50 million of debt from Rex's largest creditor. We did that earlier this year to ensure that the airline could continue to operate. These actions make clear the government's ongoing commitment to maintaining access to aviation services for regional and remote communities and recognises the critical role of the Rex network in local communities. There does seem to be a bit of a disagreement between the Liberals and the National Party about the approach to Rex Airlines. We have Mr Littleproud saying all options should be on the table and we have members of the Liberal Party—Senator Hume and Ms Ley—saying that governments— (Time expired)

Hon. Senators:

Honourable senators interjecting—

The:

Order! Particularly Senators Watt and McKenzie. If you can't sit in this chamber and show me respect, particularly when I name you, then please leave. Senator O'Neill, second supplementary?

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Minister, for that fulsome response and for putting on the record Ms Ley's response. How will Australians benefit from securing this important regional transport infrastructure, and how would remote and regional communities be impacted if Rex services were no longer available to the communities that absolutely rely on them?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Rex Airlines provides a vital service to regional Australia, a service that hundreds of thousands of regional Australians depend on. I must say, listening to the media comments this morning from those opposite, we had Mr Littleproud saying he believes that everything needs to be on the table and it seems that we had members of the Liberal Party saying that we should never own an airline and criticising the investments that we've made to date to keep the airline flying. So it does seem that there's a bit of a divide over there, in fact a significant division, between the Liberal Party and the National Party. Who pays the price for that division? It's people in regional communities that depend on these airlines to ensure that they can travel around the country. We believe we're making the right decisions for Rex and we look forward to participating in the second sale process.

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

I'm going to remind all senators today—my apologies in advance to senators who haven't called out—particularly those that I have named, of standing order 203. I am serious. If I call order, I expect you to come to order. I should not have to name you individually.