Eric Hutchinson (Lyons, Liberal Party) Share this | Link to this | Hansard source

My constituency question is to the Deputy Prime Minister and the Minister for Infrastructure and Regional Development on behalf of the ratepayers of the Northern Midlands Council. As the minister would know by virtue of my previous representations, the Northern Midlands Council and the Launceston Airport have been in dispute over the ex-gratia payment paid to council in lieu of rates on Commonwealth land. Can the minister please advise how this impasse can be resolved and what capacity the Commonwealth has to intervene to achieve a positive outcome for the ratepayers of the Northern Midlands?

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

I thank the honourable member for his question. I recognise his many representations to seek to resolve this issue over the ex-gratia payment of rates between the Northern Midlands Council and the owners of Launceston Airport.

I understand that the owners of Launceston Airport have appealed the valuation of the airport made by the Tasmanian Valuer-General through the Tasmanian courts, and so it is not appropriate for me to comment on too many details in relation to those issues. But let me simply make the point that my department has been endeavouring to act as a mediator between the council and Launceston Airport, but so far that mediation has not been successful.

For the benefit of the House, neither the Commonwealth nor airport lessee companies are under any statutory obligation to pay local government rates. That has been the standard principle that applies to government land since time immemorial, and that has been transferred in the leasing arrangements under the privatisation of airports. However, there is an expectation that there will be rate neutrality between airport or other Commonwealth land when it comes to commercial developments that occur on the property. The fact that someone builds shops on Commonwealth land should not to exempt those commercial businesses from paying the sort of rates that their competitors have to across the property boundary. So the system is designed so that there is a negotiated arrangement in regard to the amount of rates that should be applicable to the lease, bearing in mind that the aeronautical activities will be exempt but that any commercial activities should incur the normal rates.

I think it is important that the Northern Midlands Council and Launceston Airport reach an agreement on this issue. Other councils and other airports across the nation, for decades, have been able to do to it, and it should not be beyond the ability of the council and the airport to do it also in Launceston. Whilst we must allow the processes of the court to run their course, we need to continue with mediation in relation to this matter—and my department remains ready to participate and to assist in that process, however best we can.