NORTHERN Midlands ratepayers have been told they will need to stump up $148, and an additional $45 every year after, to cover the $1 million rates debt left by Launceston Airport.
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The Northern Midlands Council wrote to Prime Minister Malcolm Turnbull on Tuesday, calling for the Commonwealth to take ‘‘immediate’’ steps to terminate Australia Pacific Airports Corporation’s lease on Launceston Airport.
It also sent letters to its 12,000 residents, advising them of the impact caused by the debt – 12 per cent of the council’s income.
In the letter to Mr Turnbull, the council said it was disappointed that Infrastructure and Regional Development Minister Warren Truss had not taken action regarding the three-year rates debt.
The council is not privy to the airport’s land contract with the federal government, but said it assumed clauses similar to the following were included:
●Clause 26.1: The lessee must pay, on or before the due date, all rates, land tax and taxes without contribution from the lessor.
●Clause 26.2 (a): Where rates are not payable under sub-clause 26.1 because the airport site is owned by the Commonwealth, the lessee must promptly pay to the relevant government authority such amount as may be notified to the lessee by such government authority as being equivalent to the amount which would be payable for rates as if such rates were leviable or payable in respect of the airport site.
Northern Midlands mayor David Downie said that as it had no jurisdiction on Commonwealth land, the federal government must pursue the airport.
‘‘The Commonwealth as lessor is entitled to take steps pursuant to the lease in the event of a breach of the tenant obligations,’’ Cr Downie said.
‘‘On the basis of the above information, the Northern Midlands Council requests the Commonwealth government take immediate steps to terminate its lease with the Australia Pacific Airports Corporation for breach of its obligation to make ex gratia payments to council.
‘‘The corporation at this time is in arrears of over $1 million.
‘‘The Northern Midlands Council welcomes a meeting with you as Prime Minister to remedy this injustice to our local community.’’