THE Northern Midlands Council is campaigning for federal government intervention in its dispute with the Launceston Airport over $1 million in outstanding rates.
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Mayor David Downie said on Wednesday the airport owed the council $1 million in back rates, which has accumulated since the airport unilaterally halved the rates it pays three years ago.
Cr Downie said the latest rate evaluation set the rate equivalent amount at $450,000, and the airport chose to pay $152,000.
‘‘Because the land is Commonwealth owned, we have no enforcement ability, so we rely on the lease agreement that they have with the Commonwealth government,’’ Cr Downie said.
‘‘Under that lease agreement, they are to pay the rate equivalent to what a business would pay if it was on private land.’’
Launceston Airport general manager Paul Hodgen said the airport had worked closely with all of its surrounding councils over the years, and it would continue to do so.
‘‘Launceston Airport has paid, and continues to pay, rates to the council since the airport was privatised in 1998,’’ Mr Hodgen said.
‘‘As the airport is on Commonwealth land, there’s not a traditional relationship between the airport and the council regarding rate payments.’’
Mr Hodgen said the airport, not the council, was responsible for maintaining and upgrading roads, sewerage and stormwater systems and waste disposal.
‘‘Launceston Airport also privately fund investments in new facilities and infrastructure to accommodate continued growth,’’ Mr Hodgen said.
Cr Downie said federal Infrastructure Minister Warren Truss should intervene.
Lyons Liberal MHR Eric Hutchinson said the council and airport had already met twice under federal government guidance but failed to resolve the matter.
‘‘The offer of a further meeting has been made to the parties. I would strongly encourage both the Northern Midlands Council and the Launceston Airport to sit down again and mediate through this,’’ he said.
Opposition Leader Bryan Green said the federal government should take responsibility for the issue.
‘‘Ratepayers are shouldering the burden while this dispute drags on,’’ Mr Green said.
‘‘Ratepayers and the services they require should be put first and the Liberals need to become involved as the owners of the land.’’
