Senate debates

Monday, 4 September 2023

Questions without Notice

Aviation Industry

2:13 pm

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

My question is of the Minister representing the Treasurer, Senator Gallagher. In just seven weeks, the government ministers have given seven different excuses for Minister King's decision to stop Australians from accessing more seats and cheaper airfares. The excuses have variously been human rights, decarbonising aviation, protecting Qantas jobs, helping Qantas pay for its new fleet, the national interest, keeping Qantas profitable, and, finally, the Treasurer chimed in with 'Qatar have unused access right now; that is the issue'. Is the Treasurer's statement the authoritative answer as to why this government chose to keep airfares high and reduce competition in our aviation sector, and, if not, what is the real reason for the decision?

2:14 pm

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | | Hansard source

Thanks for the question, Senator McKenzie. I don't agree with the proposition—how she's framed that question—so I don't accept that. The government has been very clear that the decision on Qatar was made in the national interest. It was made by the transport minister following the same process that Mr McCormack made when he made a decision to put on hold an application by Qatar Airways when he was minister, so it has been very clear in all of the responses provided by the government that this decision was made in the national interest. That is the decision that Minister King made. She has been clear about that. We would also say that Qatar Airways are able to increase capacity if they wanted to right now. If they chose to put on more seats to Australia, they would be able to do that now. They are able to fly into Adelaide, Avalon, Cairns, Canberra and the Gold Coast.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator McKenzie, on a point of order?

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

On relevance, in rejecting the premise of my question, was the finance minister suggesting that greater competition doesn't put downward pressure on airfares?

The:

That is a debating point, Senator McKenzie. Minister, please continue.

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | | Hansard source

They can also fly larger planes into Sydney, Melbourne, Perth and Brisbane, but they are not currently doing so at the moment. Other airlines are also adding capacity. Cathay Pacific, Singapore Airlines and China Southern Airlines have all announced more flights. Airlines will continue to act in their commercial interests, but requests for additional capacity are determined by the minister for transport according to the national interest. Do you remember a concept like that—acting in the national interest as opposed to your political interest, which is your go-to method of operating?

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator McKenzie, a first supplementary?

2:16 pm

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

Last week, the Assistant Treasurer raised eyebrows when he said that the Qatar Airways proposal to provide much-needed international seat capacity would 'make it unsustainable for the existing Australian based carriers'. Is the Assistant Treasurer's statement the authoritative answer? Can the minister confirm that, when the Assistant Treasurer said 'Australian based carriers', what he really meant was Qantas?

2:17 pm

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | | Hansard source

I'll leave the Assistant Treasurer to respond to comments that he has made. I think the selective quoting that goes on in this chamber should also be acknowledged. Read the entire transcript of his interview.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Minister Gallagher, please resume your seat. Senator McKenzie, on a point of order?

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

On relevance, it was hard to get the Assistant Treasurer's transcripts, given it took five days for him to actually upload them.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator McKenzie, that is not a point of order, and you know that very well. Minister Gallagher, please continue.

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | | Hansard source

The decision made by the minister was made in the national interest. As she has said, there are a number of considerations that go into making that final decision. Qatar could add increased capacity on their flights now. They could fly bigger planes. They could fly into a number of different airports. They choose not to do so at this stage.

Photo of Andrew McLachlanAndrew McLachlan (SA, Deputy-President) Share this | | Hansard source

Senator McKenzie, a second supplementary?

2:18 pm

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

Does the Treasury analysis demonstrate that more flights and more competition are good for consumers, exporters, the tourism industry and our economy? If so, isn't limiting flights and competition bad for consumers, exporters, the tourism industry and our economy?

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | | Hansard source

The Albanese government supports competition, but global aviation is not a free-for-all. There are country-to-country agreements in place, as there were and as there should have been under your government. Those country-to-country agreements continue. For example, Australian carriers would like to have greater access to European markets. They currently don't. Singapore would like greater increase to American markets. They don't. It's not a free-for-all. There are country-to-country agreements in place, and it is entirely appropriate that the minister, when considering this, makes her decision in the national interest, which is what she has done.