PRIME Minister Malcolm Turnbull’s chief of staff Drew Clarke and Local Government Minister Paul Fletcher will meet the Northern Midlands Council to discuss its problems with Launceston Airport.
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Council representatives will fly to Canberra on Thursday to meet the representatives, as well as Opposition Infrastructure spokesman Anthony Albanese, regarding claims of a $1 million rates debt from the airport.
The Department of Infrastructure and Regional Development spokesman said the airport was not under any statutory obligation to pay rates to local government.
However, to encourage competitive neutrality, the spokesman said the airport’s lease with the federal government did require it make ex-gratia payments for the commercial areas of its non-aeronautical operations.
Mediation sessions in September were conducted by the department, but no resolution for Launceston Airport was reached.
‘‘To facilitate this arrangement the lease requires the airports to use all reasonable endeavours to enter into an agreement with the councils with regard to ex-gratia rates payments,’’ the spokesman said.
Lyons Liberal MHR Eric Hutchinson said he held no sympathy for the way in which both parties had conducted themselves in negotiations.
‘‘They might consider sharing responsibility for the situation they now find themselves in,’’ he said.
‘‘Worst comes to worst, if the two parties can’t come to an agreement, would be a tremendous blow to the economy of Northern Tasmania.’’
It is understood the federal government will push for an independent mediator to assess the land which is subject to payments.
Northern Midlands mayor David Downie said the necessary valuation had already been done by the independent Tasmanian Valuer-General, and there was no reason to call an expert.
‘‘All it would take is for the responsible minister and the department to enforce the terms of their lease to Launceston Airport’s owners,’’ he said.