A DELEGATION of regional stakeholders is poised to meet with regional aviation giant Regional Express to “heal wounds” and advocate for expanded services.
This follows the carrier cutting services at Mount Gambier Airport and airing concerns over the proposed multi-million-dollar expansion of the Mount Gambier Airport.
Member for Barker Tony Pasin has reached out to the carrier after Rex scaled back the number of flights in May.
Rex indicated the cuts were in response to what it described as “unfair criticism” levelled at the airline by regional authorities.
The tense relationship between Rex and the Mount Gambier community was among the key issues discussed during a visit this week by Turnbull Government frontbencher Keith Pitt.
It is not known if this fragile relationship will negatively impact on whether Grant District Council’s $3.5m funding application for the Mount Gambier Airport gets over the line.
“I am hopeful that rather than cause further grief between Rex, the community and council, that this project has the potential to draw the parties together,” Mr Pasin said.
“This is a $9.2m project, all of which is coming from state, federal and a combination of passenger levies and councils.”
During a meeting of stakeholders, Mr Pasin revealed the government was aware of the tenuous relationship between the two parties.
“The reality is Mr Pitt knows that and the other assessors know that too,” Mr Pasin said.
“I have spoken with all three regarding the nature of the relationship with Rex in this region at the moment.
“I think it is fair to say at the moment that relationship is improving. Rex has agreed to meet with me.
“When I accepted that invitation I accepted on the basis others come with me. I can speak on behalf of the community, but I am not all of the community.”
Describing it as a “positive move”, Mr Pasin said Rex had invited Grant District Mayor Richard Sage, Mount Gambier Mayor Andrew Lee, Mount Gambier Chamber of Commerce and tourism representatives to speak with board members.
A date for the meeting is yet to be confirmed.
Mr Pasin argued Rex executive chairman Lim Kim Hai had raised “valid concerns” that airport developments could push up passenger head taxes.
“That is one valid argument, but I put back to him I think we need to get state governments to change the rules with local government about how to depreciate these assets,” he said.
He said the replacement of the large assets would come from government grants in the future.
“If and when that happens, the hand goes up to levels of government,” Mr Pasin said.
Mr Pasin suggested there could be some “flexibility” in terms of setting the passenger head tax.
“I am confident that if we get to a point where we can get to an Orange or Albany solution, we will never look back if it works,” the Liberal backbencher said.
“I am hoping delivering this project will satisfy the community’s need and it also sends a fairly strong statement to Rex by the amount of funding that is going in.”
Mount Gambier Chamber of Commerce president Lynette Martin OAM said the application was community driven and the project was important for the economic growth of Mount Gambier.
She said the expansion would drive connectivity with the eastern states for business.
“I fully support Tony’s conversation with Rex to heal those wounds,” Ms Martin said.
“If we could work together, it would be to the benefit of Rex given it could grow passenger numbers.”
