The rates dispute between the Launceston Airport and Northern Midlands Council could be set to go before the peak intergovernmental forum in Australia.
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Northern Midlands mayor David Downie said a motion to be discussed at Monday’s council meeting sought councillors permission to discuss the matter with the Australian Mayoral Aviation Council and then, with AMAC’s support, put forward a motion at the Council of Australian Governments’ general meeting.
The stoush between the municipality and the airport was made public in mid-2015 and the council maintains the belief that $1.35 million is due for outstanding rates, with at least $280,000 accumulating annually.
Airports are located on Commonwealth land and, while exempt from paying regular council rates by state legislation, their operators pay a ‘‘rate equivalent’’.
“What happens in Launceston could well set a precedent for the way airports deal with councils all over Australia and in our previous meetings with AMAC they are very concerned about what happens with the Launceston airport and the Northern Midlands,” Councillor Downie said.
He was confident the Northern Midlands would receive AMAC’s support.
“We went to an executive meeting with AMAC in Hobart recently and we are also waiting for communication back from the Minister for infrastructure and I’ve been told we will receive something back after Easter.”
The mayor met Infrastructure Minister Darren Chester in February as council believes federal intervention will resolve the matter.
“We believe that every ratepayer should be rated the same and that there should be one methodology of valuation over the whole municipality,” Councillor Downie said.
Launceston Airport general manager Paul Hodgen said the airport received no services from the council,
“The ex gratia payment which continues to be made to Northern Midlands Council is there solely to ensure there is a level playing field between operators of commercial businesses on-airport and off airport,” he said.
“The council continues to be a beneficiary of the ex gratia payment paid to them by the airport each year, the amount of which continues to grow as areas of commercial activity expand at our successful airport which is stimulating economic growth in Launceston and the wider Northern Midlands region.”
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