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The Launceston Airport Rates Campaign is all about fairness and equity.
It is about our small rural municipality standing up to a corporate giant and saying it has to pay its fair share of rates just like every other citizen and business.
At stake is more than $1 million in unpaid rates stretching back over three years. That is about 12% of Northern Midlands’ annual rates revenue.
If the Airport doesn’t pay its fair share the burden will fall on other ratepayers. It would cost each ratepayer an additional $148 to just to cover the debt to date and $45 every year in future if the Airport refuses to pay.
Businesses operating on Airport land would also have an unfair competitive advantage over other businesses both in our municipality and in neighboring municipalities.
The airport is important to our region and we have supported it over many years with the provision of services, infrastructure, and incorporating its views into projects like the Western Junction Transport Hub feasibility study, our Master Plan and the development of the Translink Industrial precinct.
However the non-payment of rates has dragged on for too long.
The Launceston Airport is constructed on land owned by the Commonwealth. The Commonwealth leases the land to the private corporation Launceston Airport. The Airport is owned by Australian Pacific Airports Corporation (APAC) which in turn is owned by some of Australia’s biggest corporations including companies like AMP, IFM Investors, Deutsche Australia Limited, Future Fund, Hastings Funds Management.
Last year APAC, which also owns Melbourne Airport, had a turnover of $713 million, an operating profit of $533 million and a net profit of $183 million. Launceston passenger numbers are 1.3 million a year and growing.
The issue isn’t about capacity to pay; it is about willingness to pay.
Because the airport land is owned by the Commonwealth, Tasmanian law with respect to rates does not apply. However, the lease agreement between the Commonwealth and the airport operator requires it to make payments to the Council in lieu of rates and taxes at equivalent levels to that paid by other ratepayers.
Rates are also payable on those parts of the airport which are sub-leased to tenants, or on which trading or financial operations are undertaken including retail outlets. Rates are not payable on the runways, taxiways, aprons, roads, vacant land, buffer zones and grass verges.
The independent Tasmanian Government Valuer-General calculates the values of revenue raising