KRISTY MCBAIN, MINISTER FOR REGIONAL DEVELOPMENT: Well, welcome everybody to beautiful Merimbula Airport in the mighty Eden-Monaro, where today I'm extremely pleased and grateful to the Prime Minister Anthony Albanese for coming here. To Transport and Infrastructure Minister Catherine King, to my amazing colleague, the Member for Gilmore, Fiona Phillips, and to our local mayor, Russell Fitzpatrick.
Merimbula Airport and regional airports across the country are so incredibly important, not only for connectivity, to get people to and from medical appointments, to fly in specialists and supplies, but to keep families and communities connected. They are also incredibly important for emergency services, and this airport was the scene where almost 40 helicopters and fixed wing aircrafts were during the Black Summer Bushfires five years ago. And that's why today's announcement is so incredibly important, nearly $3.8 million to extend the runway, because we know aircraft are getting bigger, and our airports need to cater for that. Across the mighty Eden-Monaro, we've got airports, some of whom weren't able to have emergency aircraft land, and the difference that makes in an emergency cannot be underestimated. This airport does so much for our community, and this money will make a huge difference to its ongoing viability and our efforts to fight fires, in particular during emergency services. So thank you so much to the Minister for the money, because it will make a huge difference in our community and for this airport. Regional connectivity isn't something that we should just talk about. It's something that we should back every single day, and that's exactly what you get with an Albanese Labor Government.
FIONA PHILLIPS, MEMBER FOR GILMORE: Thank you. Fiona Phillips, Federal Member for Gilmore, and I'm delighted to be here today, a really important announcement for Moruya Airport, for Eurobodalla Council of $200,000 to really help upgrade the airport in terms of a runway upgrade, upgrades to the pavement, to the apron, and also some lighting as well. And what this will really mean is the continued use of this really essential airport to help with our aerial firefighting fleet capacity. And we know how important that is to Moruya, to the Eurobodalla and to our region. Importantly, Moruya Airport is so vital for health services, for families connecting to other areas, for getting our agricultural produce across the nation and internationally as well. So it's just a fantastic announcement, and I'm really proud that the Albanese Government is really backing regional airports and regional travel. Thank you.
ANTHONY ALBANESE, PRIME MINISTER: Well thanks Kristy and Fiona. It is great to be back here in Merimbula once again supporting our regions. And we've got a big announcement today about ensuring the future of access of these regional communities to our capital cities that is so vital.
Firstly, we have $12 million for New South Wales Regional Airports for Merimbula and Moruya, for Albury, Moree and Mudgee. This is important that these upgrades occur. This is critical for these regional communities. It's about extending runways, making sure that these airports are fit for purpose, that they can continue to cater for their local communities. Importantly, these airports aren't just about commuter traffic. They are, as Fiona and Kristy have said, really important for emergency services. We know that this community was hard hit during the bushfires of 2019-20. And I certainly spent a lot of time here with Kristy McBain during that period. Kristy, of course, was a former mayor and did an incredible work as a local government representative before she went on to be the federal Member. And during that period as well, Fiona Phillips was working so hard to defend the interests of her local communities. These communities are resilient, they're tough, they've come through some difficult times and they deserve the support of our national Government. And that is what we are delivering.
Can I say with regard to Rex, the collapse of Rex that we have seen endangers access of these regional communities throughout Australia to our capital cities and to the connectivity that is so vital for the quality of life, so vital for these local economies as well. We want small businesses to be located in our regions. We want thriving economies, both in and of themselves are good, but it also takes place pressure of the east coast capitals. Now, Rex has played a vital role. Rex is the only airline. If you take it away from Merimbula and Moruya, then that has a real impact on the capacity of people to get in and out of Sydney or out of Melbourne at any particular time. And we know that the reason why regional slots have been located at Sydney Airport is to make sure that people can get into Sydney in the morning and home to their local communities in the afternoon. Together with the fibre-based National Broadband Network which is designed to overcome that tyranny of distance. These two infrastructure projects, aviation access with airports upgraded plus the NBN are what will make an enormous difference for these regional communities.
Now, today I can announce that my Government is continuing to support Rex Airlines and we will ensure that regional communities have access to crucial air services. We will, beyond the cutoff date of administration of June 30th, we will work with the short list of bidders to maximise successful sale. We'll negotiate to provide support to bidders. This will be contingent on commitments to provide an ongoing reasonable level of services to regional and remote communities and the need to provide value for money for taxpayers. If there is no sale, we will work on contingency plans with relevant state governments, including the potential for Commonwealth acquisition. We'll provide a waiver of the use it or lose it test for Rex regional flight slots at Sydney Airport, which will ensure its access to those slots until 24th October 2026. This comes on top of our $80 million loan to keep Rex's routes operating until June 30th and acquiring $50 million of debt from Rex's largest creditor. Now, this is absolutely critical. We know that during difficult times, Rex received substantial Commonwealth support, not just in JobKeeper, but also in direct funds. Sadly, that didn't come with the strings of tax which should have been there. So, we saw Rex attempt to expand and compete on Sydney to Melbourne routes and go beyond what was its traditional role and the financial mess that my Government has been left with this company, we're determined to make sure that regional communities are not left behind. It's a core commitment that I make. No one held back, no one left behind are the characteristics that define my Government. And we know that for regional communities, not just here, but King Island, a range of routes around South Australia, Victoria, Queensland, WA, Rex is an incredibly important airline. Now we want to see the acquisition of Rex. The administrators are looking at that, but we want to also declare that we simply aren't going to allow these communities to be left with no aviation access, because we understand that that's absolutely vital to jobs and vital for the quality of life in these regional communities. I'll hand over to the Regional Development Minister and Transport Minister Catherine King and then we're happy to take questions.
CATHERINE KING, MINISTER FOR TRANSPORT: Thanks very much, Prime Minister. And I'll just make a few comments about the Regional Airports Program first and then give a bit more detail about the Rex announcement today as well.
We're announcing today, obviously, $12 million under the Regional Airports Program round four. This is an existing budgeted program, it's very well subscribed program which is really about trying to make sure our regional airports can continue to provide the services that they do for regional communities. So, it's great to be joined here by the mayor of Bega Valley Shire Council who applied for this funding here, Russell Fitzpatrick here. Almost $3.8 million here at Merimbula to make sure we can expand the runway, keep flights going, but also make sure we can keep all the fabulous airport workers employed in this region and beyond. And the announcement, obviously for Moruya of $200,000 as well, again, really important for the local community.
The second sale process for Rex will start this month. The administrators will commence that process and they have, Houlihan Lokey is the sales agent. What we are announcing today is what has become evident through the failure of the first sales process, that without government support, a second sales process is unlikely to be successful. So, what we are announcing today is that we will, and have worked with the administrators and we will work via the sales agents and my department, is that we will have a competitive process for the bidding for this airline, and that my Department will work with successful bidders on an incentives package from the Commonwealth Government. That is important because we know in order for the sales process to proceed, that's important. And why is it important? It is absolutely critical for regional communities that Rex continues to operate and continues to provide those services. We know they are flying 41 different routes every single week, and on 22 of those, they are the only airline that is available to communities to get to medical appointments, to get businesses working, to get people in and out for tourism. They are absolutely critical to regional communities. What we've also said today is we really want the second sale process to work. We want to make that as successful as we possibly can. But in the event that it does not, we are starting the process to make sure, alongside state governments that also provide significant subsidies in some areas to make sure regional aviation intrastate is working, that we will start the process, if that is needed, for the potential Commonwealth acquisition and working with states and territories on that. We know how important regional aviation is. It is the backbone of connectivity for communities like this here in Merimbula. But it is also a great generator of jobs, employment, and we want to make sure that regional aviation is strong going forward. Thanks, Prime Minister.
PRIME MINISTER: Happy to take questions on this. And then more broadly.
JOURNALIST: (Inaudible).
MINISTER KING: So, as you're aware, the first sale process was not successful. There were people who were interested but then didn't put in a credible bid. What we are signalling here through this process is that we are looking far and wide and the administrators are looking far and wide, but also know that there will need to be incentives in place for some bidders. There are some people I see in the paper today who are interested. We think that there will be a number of bidders but what we are also saying really clearly, for the Commonwealth to put investment into this airline, there will also need to be some things. Guaranteeing of routes, so making sure that regional communities stay connected and also some issues around governance. And we really want to work with the administrators and Houlihan Lokey on that process.
JOURNALIST: (Inaudible).
MINISTER KING: Well, as we said, the second sale process will start shortly. We're trying to make sure that that has every opportunity, but we have always said nothing is off the table. We want to make sure that Rex survives and that regional communities like this one continue to have that connectivity.
PRIME MINISTER: To be very clear, we prefer for the private sector to be successful in a bid. What we are doing, though, is providing that certainty for regional communities that they won't just be left abandoned, because that would create real issues for those local areas.
JOURNALIST: (Inaudible).
PRIME MINISTER: Well, those issues, of course, are commercial. As I said, our preferred option is for a private sector operator, perhaps another airline. There's a range of options available, there's a range of interest here. We recognise that the Commonwealth and state governments will have to play a role in providing some support, but that's our preferred option. But we know that these communities, 22 of the routes, this is the only access that they have through Rex. And if you take away aviation access, you change the whole dynamic of a community. You change the capacity of people to get to a medical appointment, you change the access to emergency services. Because if you don't have a commercial operation at an airport, it changes the nature of the workforce and what's happening at that airport, as well as obviously people being able to get in and out for commercial reasons, for business reasons. In addition to that as well, communities like this are tourism meccas and yes, some people will drive, but we want people to fly into these communities as well, creating jobs and economic activity.
JOURNALIST: (Inaudible).
PRIME MINISTER: Well, the point of Rex is it has a unique position. It's not running major routes. In Qantas’ case, it's an international airline and it provides a different service. We know internationally, Air New Zealand next door is owned more than 50 per cent by the government. And aviation, the reason why governments have intervened and airlines around the world, whether you look at Singapore, BA got bailed out, Alitalia, Lufthansa as well as, of course, the Middle Eastern airlines, all connected with their governments, whether it be Emirates, Etihad or Qatar, Gulf Air, these are all connected. There's a reason for that. Because aviation plays a critical role in communities. And that's why we're not going to allow in a vast continent like Australia. We're not going to allow communities to just be falling behind. I mean, this is doing the right thing by regional communities. As I said, our preferred option is for the private sector. There’s been one round, if you like, that what's wasn't successful. We are indicating there'll be another round here, but we're also providing certainty for those communities.
JOURNALIST: (Inaudible).
PRIME MINISTER: Well, President Trump gave a very clear signal yesterday when he said that an exemption for Australia is under great consideration. They're his words, they're consistent with the discussion that I had with President Trump. It was a very warm and constructive discussion. And engagement, we’ll continue to do so.
JOURNALIST: (Inaudible).
PRIME MINISTER: I think we're still working on that issue. Don Farrell, the Minister, is working hard. He was continuing to have meetings right across the Parliament with the crossbenchers, with the Coalition. I think that getting big money out of politics and getting more transparency is important. That is Labor's view. But we have 25 votes out of 76 in the Senate, so we need some additional votes in order to secure support. I'm confident that reform of some basis will be carried by the Senate. I think all of the political parties have a look at the way that the system's been operating, where one individual can spend $100 million on a campaign, as we've seen, is something that defies our democracy because not everyone can do that and that's a distortion. So, what we want to do is to make sure as well that we have a transparent system, that we get proper reform. I'm hopeful that the Senate will see reason, but we'll wait and see what happens over the next couple of days and if not, we'll wait and see what happens next time Parliament sits.
JOURNALIST: (Inaudible).
PRIME MINISTER: Look, I want to see those terms continue. I want to see the ceasefire continue. I want to see hostages released as well. I think Australians overwhelmingly want to see an end to conflict there. They want to see as well, hostages released and they want to see an end to the involvement of terrorist organisations like Hamas. I think that overwhelmingly is what Australians want and they want in the longer term, Australia's position remains exactly the same as it has been on a bipartisan level for a long period of time, which is a two-state solution with Israelis and Palestinians living in peace and security side by side, which John Howard, almost 20 years ago now made it very clear that the Palestinian question needs to be settled and that that was a key. Without that, it's difficult to see there being peace in the Middle East. I want Israelis to be able to live in peace and security and prosperity, but I also want a peaceful region which includes the right of Palestinians to live in peace and security as well. Thanks very much.