Ms Catherine King (Ballarat, Australian Labor Party, Minister for Infrastructure, Transport, Regional Development and Local Government) Share this | Hansard source

I thank the member for Gilmore for her question. I particularly note that when the Minister for Health and Ageing was giving his response he referred to the wonderful member for Aston and her fighting spirit. You couldn't get a better matched pair than with the member for Gilmore. People have written her off, and look at her! She is absolutely amazing and we are delighted to have her here all the time with us.

For towns like Moruya in the seat of Gilmore, Coober Pedy in the seat of Grey and Winton in the National Party leader's seat of Maranoa, Rex is the only airline that connects them to the biggest city in their region. Forty-five towns in Australia rely on Rex to get them where they need to go. Our government has been crystal clear from the start: we know Rex is essential. When Rex hit financial turbulence, we stepped in to keep it flying. This government made a commitment that it would support Rex and the regional towns that rely on the airline.

I'm pleased we've made significant headway on this commitment, with administrators securing a way forward with Air T, subject to the upcoming creditors meeting next week. Air T have significant experience in maintaining aircraft such as the Saabs that connect our regional communities and serve Rex's essential routes. The government will be, as I announced yesterday, supporting Air T in restructuring Rex's existing debts. In exchange for this support, Air T have agreed to a range of commitments that will preserve regional connectivity, including returning more aircraft and increasing the frequency of those profitable flights across the Rex networks. The government will be retaining security over the aircraft and the simulator, and that will ensure the fleet of Saabs cannot be sold without this government's permission, making sure that guarantee is there.

We announced yesterday that we are also establishing a new $5 million program for local government owned regional and remote airports that supported Rex throughout voluntary administration. We know many of them have had to forgo money they would have been able to spend on other things because of that administration. This government is stepping in and supporting those local councils, and making sure they are able to keep those incredibly important regional airports going.

This government has been determined to support Rex from the start. I have to say, some of the comments at the time from those opposite, particularly when we were told that, frankly, what we were doing was a bridge too far—I think the shadow minister said we were going to crowd out competition from smaller regional airlines, warning us to break Rex and Rex's routes up. This has been an important process, for the government to systematically and seriously work through what has been a difficult problem, and I'm pleased we now have a pathway forward for regional aviation in this country.

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