Rex Patrick (SA, Independent) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Infrastructure, Transport and Regional Development; it's a trifecta for Senator Cash. Regional Express Airlines, which was the recipient of a multimillion dollar support package from the Australian taxpayer throughout the COVID crisis, this week announced that it will axe five key routes across the country, including the Adelaide to Kangaroo Island route in my home state of South Australia. This comes a week before they launch their first Sydney to Melbourne flights. Has the federal government engaged Rex Airlines about these axed routes, including Adelaide to Kangaroo Island? Is the government considering extending its Regional Airlines Funding Assistance Program, which these routes are being subsidised with?

Michaelia Cash (WA, Liberal Party, Minister for Employment, Skills, Small and Family Business) Share this | Link to this | Hansard source

I thank Senator Patrick for the question. I can advise as follows: the government is in daily discussions with airlines to understand the needs of the sector and to ensure our programs are supporting the communities that they fly to. You'd understand, though, that decisions on network configurations and scheduling are ultimately a commercial matter for the airlines themselves. This includes, as you've referred to in your question, Rex's decision to cease the Adelaide to Kangaroo Island route.

The regional aviation network support does not compel airlines to fly to particular routes. However, we continue to monitor the need for future support, whether it be through aviation measures or broader economic measures. You'd be aware that Rex is one of 15 operators receiving funding to ensure critical aviation services, particularly in regional and remote Australia, through the COVID-19 pandemic and the impact on the aviation sector, to ensure essential workers can travel domestically, to support health transport services, and to distribute critical goods and equipment. The regional aviation network support, as you'd be aware, currently runs until March. I am advised that, obviously as a government, we'll continue to monitor the situation and continue further support if necessary. Qantas themselves, in a media release, have stated:

We'll be reviewing our network and consider whether we can offer services on any of the routes that Rex is threatening to pull out of.

I think you know, from the government's perspective, we've always been of the opinion that Australia's aviation industry does have a bright future ahead. I'm confident that we will rebuild throughout 2021 and beyond.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Patrick, a supplementary question?

Rex Patrick (SA, Independent) Share this | Link to this | Hansard source

Have the government engaged South Australia's tourism minister, Premier Steven Marshall, about the impact that this axing will have on tourism in Kangaroo Island, which is still recovering from the horrific bushfires last year and a loss of tourism dollars from COVID-19 shutdowns and border restrictions? If not, will they at some stage in the future?

Michaelia Cash (WA, Liberal Party, Minister for Employment, Skills, Small and Family Business) Share this | Link to this | Hansard source

Again, I refer to my answer to your first question. The government is in daily discussions with airlines to understand the needs of the sector and to ensure our programs are supporting the communities they fly to. The government also expects all state and territory governments to engage with airlines to ensure the required support for their local communities and regions is considered, particularly with interstate and intrastate routes. Airlines, as you know, are receiving government assistance under different government programs based on their specific circumstances, and, as stated in my previous answer—

Scott Ryan (President) Share this | Link to this | Hansard source

Order! Senator Patrick, on a point of order?

Rex Patrick (SA, Independent) Share this | Link to this | Hansard source

On relevance, Mr President: I was keenly interested in the engagement that might have taken place between the government and the South Australian tourism minister, Premier Marshall.

Scott Ryan (President) Share this | Link to this | Hansard source

You've reminded the minister of the question. She has 18 seconds remaining to answer. I shall listen carefully.

Michaelia Cash (WA, Liberal Party, Minister for Employment, Skills, Small and Family Business) Share this | Link to this | Hansard source

In relation to those discussions, I will take that on notice, but the government, as I've said, is in daily discussions with the airlines, and our expectation, obviously, is that state and territory governments are also engaging with airlines to ensure that the required support for their local communities and regions is considered.

Scott Ryan (President) Share this | Link to this | Hansard source

Order, Senator Cash. Senator Patrick, a final supplementary question?

Rex Patrick (SA, Independent) Share this | Link to this | Hansard source

What is the government's plan to ensure that the aviation sector remains safe, available and affordable to regional areas in Australia, and particularly those reliant on tourism, such as Kangaroo Island?

Michaelia Cash (WA, Liberal Party, Minister for Employment, Skills, Small and Family Business) Share this | Link to this | Hansard source

I can advise that in June 2020 the government directed the Australian Competition and Consumer Commission, the ACCC, to monitor the prices, costs and profits of Australia's domestic airline industry and provide quarterly reports to inform government policy. The ACCC continues to monitor airline activity and has published two quarterly reports on airline competition in Australia, in September and December 2020. The programs that the government itself has put in place have been targeted specifically to the needs of Australian communities and developed, as you know, in close consultation with the sector. The focus of the Australian government's efforts has been to keep essential services running, and this has enabled funding to flow through to the aviation sector, ensuring that the maximum number of jobs can be supported. Unfortunately I don't have time, but I could take you through the five-year plan we have for aviation. But that will wait for another day.