Airport Assets Bill

_{11 September, 2008}

AIRPORT ASSETS (RESTRUCTURING AND DISPOSAL) BILL
Ms JARRATT (Whitsunday—ALP) (2.59 pm): I rise to support the Airport Assets (Restructuring and
Disposal) Bill. In doing so, I welcome the decision taken by the Premier and Treasurer earlier this year to
use the funds from the sale of the Mackay airport to provide a new hospital for the Mackay health district.
This bill has wider implications than just for Mackay. It seeks to put in place the mechanisms necessary to
divest state government interest in both the Mackay and Cairns airports and to dispose of the government
shareholding in the Brisbane Airport Corporation.
The airport disposal process is being conducted in conjunction with a review of the ports’
government owned corporation sectors. Importantly, the government has committed to a retention of a
publicly owned seaport at Mackay. The government has also given a commitment that all permanent
employees will be afforded the current terms and conditions of current enterprise bargaining arrangements
for the next three years. This will not preclude the negotiation of new enterprise bargaining arrangements
as long as the employees are no worse off.
While I acknowledge that the arrangements may have created some initial anxiety for airport staff,
there has been overwhelming support for the government’s plan to redevelop the Mackay Base Hospital,
which is groaning under the pressure of continued population growth throughout the region. There is no
doubt that the provision of modern, well-equipped and fully staffed health facilities is shaping up as the
greatest challenge for governments throughout Australia and indeed the world. Not only are there more of
us living longer and expecting to survive conditions that were once routinely terminal; the cost and range of
available medical equipment and procedures are ever expanding and increasingly expensive. It is not an
excuse for governments, but it does help to explain why, even when the Bligh government spends its entire
GST allocation on health care, we just do not seem to satisfy demand.
That is why I am so happy that a creative solution has been found to fund the redevelopment of
Mackay Hospital. The new hospital will see bed numbers grow from 163 to 318. There will be more
operating theatres, a special dedicated coronary care unit and a larger intensive care unit. The hospital will
also feature new and expanded emergency and outpatient departments, day oncology, renal support
services and a dental services unit. These new and expanded services will not only better serve the health
and medical needs of our growing region but also hopefully go a long way to convincing medical specialists
and clinicians that Mackay is a great place to locate themselves and their families.
The primary purpose of the bill is to move the airport businesses of Mackay and Cairns out of the
respective ports corporations and into two subsidiaries—namely, an airport lessor owning the airport land
and an airport lessee-operator who will take a 99-year lease over the airport land. It is important to note
that the government is not selling its interest in the airport land and infrastructure. It will be subject to a 99-
year lease.
On 15 August this year the state began sending requests for indicative bids to parties who lodged an
expression of interest for the Mackay airport. Responses to these requests for indicative bids were
received on Monday, 8 September. The state intends to select a short list of bidders who will proceed to the
Speech by Jan Jarratt extracted from Hansard of Thursday, 11 September 2008
File name: jarr2008_09_11_68.fm Page : 2 of 2
final binding bid stage of the process. The state intends to complete the transaction by the end of the 2008
calendar year.
In many ways this legislation is similar to previous legislation that was passed to enable electricity
and water transactions. It allows for the establishment of a planning regime that will sit under the
department of planning, and allow greater flexibility from a regional planning perspective and from the
regional council’s perspective. Importantly, I believe that moving the airport business into private hands will
allow greater flexibility and bargaining power to grow the business by attracting new airlines and/or more
flights into Mackay and Cairns. Gone are the days when governments owned and operated airports to
ensure flights for regional Queensland. Destinations like Mackay and Cairns are now self-generating in the
domestic market but will further benefit from the know-how and market smarts of a proven industry
operator.
I wish to place on record, however, my commendation of the Mackay Port Authority for its long and
successful management of the Mackay airport on behalf of the state and the people of Mackay and district.
In particular, I recognise the leadership of past board chairman John Taylor and current chair Graham
Davies, who have been at the helm during a significant growth period at the Mackay airport which has
culminated in a record 740,787 passenger movements in 2006-07. I have no doubt that the figures for
2007-08 will have surpassed this total as the airport goes from strength to strength. I am certain that
Mackay will continue to be well served by the airport under the new arrangements. In a case of having
cake and eating it, too, we will also benefit from the opportunity to build a new hospital to serve our growing
region. I commend this bill to the House.

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