CLONCURRY SHIRE COUNCIL SUBMISSION TO THE RURAL AND REGIONAL AFFAIRS AND TRANSPORT REFERENCES COMMITTEE

1 INTRODUCTION

Cloncurry Shire Council would firstly like to thank the Rural and Regional Affairs and Transport References Committee for the opportunity to make a submission on behalf of our community. Connectivity through aviation is an essential service to regional and remote areas of .

The topic of airfare pricing has far reaching social and economic implications for our residents. The cost of airfares to and from Cloncurry is on average two to three times higher than airfares on Eastern Coastal routes of Australia. The option of a two hour flight between Cloncurry and Townsville as compared to a nine hour drive would appear to be a simple one, however airfare pricing makes this simple decision cost inhibitive. The high cost of airfares has crippling impacts to residents in our community being able to attend unexpected family medical emergencies, funerals, returning children to and from boarding school, children attending representative sporting carnivals, employers sending staff to training courses and the list goes on. It is a regular occurrence that residents will opt to drive long distances due to the oppressive cost of air travel.

Cloncurry is serviced weekly by five QantasLink flights to Townsville and three Virgin Airlines flights to Brisbane. In addition Cloncurry Airport services approximately five chartered flights catering for the mining sectors Fly-In, Fly-Out (FIFO) workforce. Approximately 50,000 passengers per annum pass through the Cloncurry Airport.

We have attached submissions from individuals within our community who wanted to share their experiences. Many were unsure how to make a submission directly to your review committee. In order to expedite the process we invited our residents to simply forward their experiences and feedback to us so their voices will be heard.

The people of Cloncurry Shire are humble and often reluctant to speak out, we are conditioned to grin and bear many hardships whether it be long periods of drought, isolation or the excessive cost of air travel.

The premise of our submission is that our residents of rural and remote Australia should be granted the same opportunities as those living in proximity to larger cities and the current inequality needs to be addressed.

ABOUT CLONCURRY

Cloncurry is a small rural community situated in North Western which is located 783km West of Townsville, 1,704km North West of Brisbane and 122km East of our bordering city of Mount Isa.

Cloncurry has a population of approximately 3,000 people and is the second largest regional community in North West Queensland.

2 Cloncurry is the geographical focal point of the North-West Minerals Province which generates billions of dollars for the Australian economy and significant taxes for Federal and State Governments. The local economy is built on four major pillars which are agriculture, mining, tourism and transport infrastructure.

Due to the geographical position of Cloncurry our remote community is challenged with the ongoing issue of connectivity to major cities.

AIRFARE COMPARISON

Historically a high level of variability exists for flights arriving and departing Cloncurry. Airlines encourage travellers to book as far in advance as possible however it is found in regional areas that this does not regularly equate to affordable flight prices.

Based on the website the general lead in fare for a flight from Cloncurry to Townsville is $201. The following screen shots illustrate the prices that Cloncurry passengers experience.

Short lead time airfares prices to Townsville

3 More than one month lead time to Townsville

Similarly, the lead in fare from Virgin Australia for a flight from Cloncurry to Brisbane is generally $363.

Short lead time airfares prices to Brisbane

More than one month lead time airfare prices to Brisbane

Furthermore, we compared the cost of return flights for a family of four between Cloncurry and Brisbane versus Brisbane and on the same dates with the same airline. As displayed below, the cost is almost three times more expensive at best. This disparity only increases with shorter periods of time before flight dates.

Our example illustrates how the current high cost of air travel impacts economically and socially on families, and all but puts air travel beyond the scope of families living in our region.

4 Cloncurry to Brisbane Brisbane to Melbourne

07 Feb 2018

to

14 Feb 2018

5 02 Apr 2018

to

09 Apr 2018

6 06 Jul 2018

to

13 Jul 2018

THE ILLUSION OF LOCAL RESIDENT DISCOUNTS

Recently some airline carriers have announced “local resident discounts” but these schemes are typified by a lack of transparency in relation to who is actually eligible and how to participate. Carriers regularly exert pressure on local Councils like ours

7 to reduce landing fees and assert that if these demands are not met they may withdraw all local resident discounts within our region.

Cloncurry Shire Council actively seeks to identify ways in which air travel can be made more affordable for our residents. As of 1 July 2017, rather than increasing the passenger tax by CPI increases the Council purposely reduced the passenger tax for regular passenger transport (RPT) flights, however due to the complexity of the airfare structuring it is difficult to identify if this saving has been passed on to the passenger.

Airlines encourage customers to book ahead to access the best deals, however the discrepancy between regional and metropolitan flight costs remains. On the rare occasion that there are cheaper seats available these are often quickly secured by large mining conglomerates and/or government departments, leaving little availability for local residents.

SOCIAL AND ECONOMIC CONSEQUENCES OF UNAFFORDABLE AIR TRAVEL

The demographics of our community are such that we have a high percentage of both senior citizens and Indigenous Australians. We also have a significant number of residents that are welfare dependent. These members of our community possess the least capacity to afford air travel inferring that they will too often be unable to attend funerals, birthdays, anniversaries and other special occasions. An inability to attend such events fosters social isolation which can compound their socio-economic vulnerability.

Flight services in and out of Cloncurry are provided by an ageing fleet which is often outsourced to despite booking through Qantas or Virgin. The ageing aircraft offer little in the way of comfort or entertainment for passengers who have had to pay extravagant amounts of money for the service. The likelihood of cancellations due to reliability concerns is also compounded by the age of the aircraft servicing our region.

In recent times there has been a shift for heavy freight to be transported via roads rather than the rail network. This shift has markedly increased the number of large road trains on our highways, increasing the risks to those travelling by road who cannot afford the high cost of air travel. The dangers or risks of travelling by road are further compounded by the lack of investment in our road networks further placing those that can’t afford air travel at greater risk.

Children of our community love sport and their parents and caregivers do everything they can to afford their children the same opportunities as those in metropolitan areas. Parents within our Shire will often travel over six hours by car so that their children can participate in different sporting activities like Junior Rugby League, Cricket and Rodeo. Unfortunately the prohibitive cost of airfares means that young rural sport enthusiasts lack access to elite competition and coaching which impedes 8 their development, whereas metropolitan families have easy access to development camps and competitions. In the hope of providing greater cultural, academic and sporting opportunities to their children some parents opt to send their children to boarding schools. However, meeting the financial commitments of a boarding school education can mean these families cannot afford the cost of flying their loved ones home for the holidays leading to social disconnection of the family unit.

Given our geographical isolation we do not have local access to medical specialists. Funding through the patient travel subsidy scheme can be difficult to access and is not an overarching solution. Particular areas of healthcare such as orthodontics and specialist dental work do not currently come under the umbrella of the current scheme. Patients in rural and remote Australia are often forced to incur the travel costs themselves if they wish to receive a second opinion or explore alternative treatment options.

Our community also has restricted access to politicians and policy makers because of the high cost and infrequent scheduling of flights. To gain an audience with politicians we have to fly to metropolitan areas at great expense. As a result community needs and concerns are rarely heard.

THE FALLACY OF THE LANDING FEE DEBATE

Cloncurry Shire Council has subsidised fees to encourage airlines to offer lower prices for our residents but we are yet to see any benefits to the consumer. Airlines often suggest that a major component of the fare price is landing and passenger taxes. This argument deflects and confuses earnest assessment of the impact of landing and passenger fees, as illustrated in the bellow example.

Cloncurry Airport charges - Qantas and Virgin Airlines.

Qantas – Dash 8-400 with 74 seats Passenger Tax = $32.27 Landing Fee = $ 4.84 (average of $358 per flight by 74 seats) TOTAL FEES = $37.11

Virgin – Fokker 100/Embraer 190 Passenger Tax = $32.27 Landing Fee = $ 5.65 (average of $565 per flight by 100 seats) TOTAL FEES = $37.92

Assuming a return fare cost of $800, passenger and landing taxes levied by Cloncurry Shire Council equate to less than 5% of the fare. What airlines often fail to acknowledge is that every cent collected at Cloncurry Airport through these fees is injected back into the local community to offset the lack of royalties and government assistance being provided to an area that produces a significant amount of wealth for the nation.

9 RECOMMENDATIONS

In an effort to move towards affordable flights for our local residents and to encourage visitors to our region there are a number of alternative strategies that may produce more equitable outcomes.

A small percentage of the royalties generated in our region could be utilised to offset the inflated cost of air travel. To participate in such an initiative airlines might be asked to offer a certain quota or percentage of seats at a discount.

Alternatively, government assistance could be offered to private charter providers wanting to offer services in rural or remote locations. This could be achieved through fuel credits or tax incentives to encourage competition where little is currently present.

There is a need for urgent change and we encourage the committee to be a champion for rural and remote Australians. This is a wonderful platform to address the current state of inequality and create an environment where air travel is affordable to all.

10 CLONCURRY COMMUNITY MEMBER EXPERIENCES

Bet Dawson – Cloncurry Shire Resident

Having recently moved to Cloncurry in January 2017 I needed to travel to Victoria to attend a funeral.

It was last minute and the only flight I could afford at that time departed Cloncurry at 8:40am on Australia Day, and arrived in Melbourne at 10:25pm for $450 (one way only – I drove back).

Whilst the cost of this flight is not unreasonable, travelling for 14 hours to make it affordable is another example of how people living in remote and isolated areas are disadvantaged by airlines pricing.

Hamish Griffin - Cloncurry Shire Resident

My experience with flying from Mt Isa to Brisbane this last year has cost me a fortune November 2016 return for funeral 3 adults, 2 children $3600, January 2017 return for daughter’s wedding in Brisbane, 1 adult, 2 children, $2200, annual leave in May 2017, return to see family in Brisbane for 1, $698, November 2017 Brisbane return, sister’s wedding 2 adults, 3 children, $3967, December 2017, return Christmas with family 1 adult return $742 total $11,207 lot of money wasted on flying from Mt Isa to Brisbane return, why does it have to be so expensive?

11 Nicholas Gentle - Cloncurry Shire Resident

Hi Guys. Just want to add my experience to your submission on the price of flights. My name is Nicholas Gentle. I have lived in Cloncurry for 9 years. I have a wife and two children. My children do not know their grandparents either here in Australia or Ireland this is a direct result of the ridiculous price of airline tickets from Cloncurry to Brisbane. I recently flew down to Brisbane for a funeral at a cost of $1400 return this is more than a ticket to Ireland from Brisbane. My wife has not seen her family for over three years as we cannot afford to pay $5600 just to get to Brisbane. I love the town and community of Cloncurry but am considering moving to a major hub more and more everyday so my Wife, children and I can have a relationship with our families. Kind regards Nicholas Gentle

Robin Tully – Cloncurry Shire Resident

I am a Registered Nurse and I have been living and working in Cloncurry for over 10 years. I work in both the Cloncurry community aged care sector as well as in acute care at the Cloncurry hospital. I have a young family and I enjoy living in North West Queensland.

I know first-hand how greatly I as an individual and the wider community of Cloncurry are disadvantaged by the high cost of air travel to regional towns and capital cities. I will list some of the reasons that are close to my heart:

Professionally:

As a Registered Nurse I am unable to afford to fly regularly (I mean once or twice a year) to coastal cities (Cairns/ Townsville/Bris) for professional development courses. This inability to attend face to face courses to upgrade our skills as health professionals and keep us up to date with advances in healthcare means that our community is not enjoying the quality of services that our coastal counterparts do.

An example: I recently enquired about holding a professional development workshop in Cloncurry in February. The instructor was very enthusiastic to come and deliver this in our town until he rang me back and explained that it would not be a viable financial option for his business considering the airfare costs to Cloncurry from Brisbane.

Effect on the Elderly Population:

As an advocate for the aged care community in Cloncurry I see daily the effects of social isolation and loneliness has on this age group. Many people 65yrs and over have family that have grown up and moved away and now reside on the coast. These older people are not able to afford the high cost of airfares to visit family and friends. Likewise family members cannot afford to visit Cloncurry to visit elderly family here. This older population is unable to take advantage of online discounted airfares as many in this group do not have access to the internet or are not IT savvy.

12 An example: I recently dealt with a bereaved elderly client who was unable to fly to Townsville to attend her sister’s funeral due to the high cost of flying and this person is unable to drive this distance. They did not attend this final good bye to a loved one.

Personal:

As a mother of a child starting boarding school in Brisbane the cost for airfares to travel home for holidays for 1 year for one child alone is in excess of $3000. Like I said I am a Registered Nurse, so my income is average as I do not work in the mining industry. I simply cannot afford these high airfares to Cloncurry each school holidays. I am not always fortunate to take advantage of discounted fares as these fares are for travel in school holidays which immediately put that price up. By road the distance to Brisbane is 1704kms and would take 4 days (2 x 9hrs driving one way, 4 days return) just to complete a Cloncurry/Brisbane/Cloncurry to pick up a child from boarding school in Brisbane. (Never mind that I would need to take up to 18 days annual leave per year from my employer to complete such a driving trip). Most parents of boarding school children would like to see their children during the school term once or twice a year (e.g. to watch them compete at sport or to make face to face contact with their teachers). As I work on a rostered basis I am not always able to know exactly what days I have been allocated for leave purposes ahead of time so it is not always possible to take advantage of the cheaper sale airfares in advance.

The distance to Brisbane/Melbourne is similar to Cloncurry/Brisbane – yet today (29/1/2018) I can book a flight for this weekend from Bris to Melb (one way) for $211. By comparison if I book Mt Isa to Brisbane (one way) for this weekend today the cost is $621. A difference of >$400. Surely this is considered to be disadvantaging a certain group of people by their location and lack of competition. As a family we simply cannot afford these prices. I too cannot afford to visit family on the coast and likewise my family do not visit because of the high cost of airfares to Cloncurry & Mt Isa.

I am aware that residents at Roma and surrounding areas in South West Qld have available to them “resident’s fares” that are capped at $149 for a Roma/Bris flight. Why do we not have this or similar available to us here in North West Qld?

Many Thanks for taking the time to read this and I hope that this discrepancy in airfares will be examined.

Tristin Condon – Cloncurry Shire Resident

When my wife and I moved to Cloncurry we viewed the chance with a high degree of adventure and as a chance to promote health outcomes for the community. I have cerebral palsy which affects all four limbs. I have an unusual gait which places my joints under extreme pressure and subsequently I burn 10 times the energy that an able bodied person would each day.

13 Cloncurry is an amazing community that exudes pride, but it is very isolated, even more so for those with health challenges. Many with disabilities do not have the physical or cognitive capacity to advocate for themselves inferring they are often socially and economically marginalised. Those without direct experience of endeavouring to access essential health services and treatment might suggest the advent of NDIS and the medical transport subsidy mitigates indirect marginalisation of those with disabilities. However those with health concerns in areas like Cloncurry have very limited treatment options and this is further hindered by the cost of air travel.

When I lived on the coast in Brisbane I could access experimental trials and technology in Melbourne and Sydney with ease but those living in communities like Cloncurry are being denied the freedom to choose treatment options due to the high airfare costs. Treatment options available in Cloncurry and Mount Isa are scarce and health professionals are under constant duress because of high case loads which translates into a high staff turnover and burnout. This high attrition rate also means a complete lack of continuity between health providers and their clients. Continuity is critical to determining the trajectory of those with health challenges. Mastering basic physical movements is an incremental process thus maintaining momentum when breakthroughs occur it is imperative. Any potential breakthroughs will not occur without ready access to health facilities and services, but affordability of air travel is a barrier to promoting quality of life and the freedom to choose how we live. The price of airfares should not be the determining factor of healthcare accessibility.

My wife and I needed to travel to Brisbane to see an eye specialist in late August early September 2017 as access to a specialist in Cloncurry was not possible. Many drive 8 hours to Townsville in an effort to gain access to reasonably priced flights to their required destination. However, we found ourselves in a situation where driving was not possible so we paid $1750.00 for direct return flights from Cloncurry to Brisbane. This is an excessive financial burden beyond the reach of those in regional Australia.

Living and working in Cloncurry has been an amazing and a rewarding experience but we were not prepared for simple pleasures such as visiting family to create such a heavy financial burden. The cost of air travel is certainly hindering economic development and isolating families.

Bre Fagan - Cloncurry Shire Resident

In November my partner and I had to travel to NSW unexpectedly. Instead of flying we took four days to drive back and forth. Even with the extra days we took off work, it was still cheaper than flying!

14 Frances Talbot - Cloncurry Shire Resident

I had to return to NZ suddenly as my mother was dying in Feb 2017: the cost $2000. The fare across the Tasman was $500 return! I could not stay long as she seemed to get better and returned to Cloncurry. Three weeks later she died, and I returned to NZ for the funeral. Again $2000 so $4000 in a month for airfares out of Cloncurry. Virgin was offering a discount for Bereavement travel and NW Travel requested on my behalf, but it was refused!

My trip in October to Paris cost me $1900 ex Mount Isa. The return component to Brisbane was $1000. I have just had a week in Sydney to get away from the heat and it was $1200 return. You can travel overseas for that.

If they put on a charter flight once a month to either Brisbane or Townsville with really cheap air fares I am sure the planes would be full. We live in a remote and hot place and we do need to seek relief on the coast a few times a year. That’s a reality. The cost of getting out is making people think twice about living here because family is so important, and people cannot visit their loved ones without mortgaging the house! Good luck with your submission.

I flew Mount Isa to Brisbane in December 2017 for $400 and that’s booking it 2 months in advance as a “special” ticket yet my partner only paid $125 from Townsville to Brisbane.

Brooke Elliot - Cloncurry Shire Resident

I flew to New Zealand late last year to visit my sick Aunt. I flew out of Cloncurry and in to Mt Isa to get the cheapest flights possible using both Virgin and Qantas. My domestic flights were just under $1000 and my return flights with Emirates to New Zealand were just over $500. The costs of flights impacted my ability to return for her funeral which was within two weeks of the first visit. I was extremely lucky that my daughter was still under two at the time of travel so could travel on my lap otherwise I may not have been able to go. My daughter turned two the day my Aunt passed so I would not have been able to afford the additional airfares and would have required my husband to take time off to care for her at home if we could have attended. Virgin had a sale last week for $199 flights (on selected days). I have not seen flights this cheap direct through the airline for over two years and before that for a short time when Virgin started flying out of Mt Isa. I assume this in response to the enquiry. The cost of travel not only impacts local residents but their family who do not live locally. It can make living in this community very isolating. Both my husband's family and my family predominantly live in Brisbane. My husband works out of town week on and week off so it would be ideal to be able to fly my retired Mum to Cloncurry to help out if needed but it is simply unaffordable. My parents have not visited for over two years because they can't afford flights and medical reasons have prohibited them from driving remotely during this time. I am due to have a second baby in April and am seriously thinking about switching hospitals because of the complexity of getting someone here to look after my toddler when the time comes. I have enough family 15 willing to come Mt Isa and wait with me but I can't afford the cost of flights and could not ask them to pay for their own. I don't want to have this baby so far from home and dread the 1700km (one way) drive with a newborn and toddler if I have to travel to be closer to a family support network. My husband and I love living in Cloncurry but the cost of travel to stay connected with our family is forcing us to put a timeline on our time here before we look to move somewhere were we are not so isolated from our loved ones. Thank you for extending your submission to the community. I feel very strongly about the cost of travel and hope you receive the support you are looking for. I have more examples of the impacts of the costs of flights if required. Kind regards

Rachel Rozynski - Cloncurry Shire Resident

This is my submission about the flights. I had to change my flights due to the fact that I needed surgery. I had already paid roughly $800 for a return flight and then had to pay approximately $100 to change my flight and approximately another $500 to pay the difference in flights. The flights are supposed to be cheaper but being a teacher the flights are still ridiculously expensive because we have to travel during school holidays time.

Anita Whyte-Dan Macnamara - Cloncurry Shire Resident

Me and my daughter had to fly from Mt Isa to Brisbane and it cost $2,800 return. Money I did not have just lying around. Could go on an overseas holiday for that price.

Louise Martin – Cloncurry Shire Resident

A weekend trip Cloncurry to Townsville in June for 2 adults and 2 children $3,800! Who can afford that? There maybe occasional deals but they are few and far between.

16 Tiuanne Spillane Braxton Boyce - Cloncurry Shire Resident

They wanted to charge me my partner and son $3000 to NSW one way ticket, it is cheaper to drive down for $750 Roughly With Food And Drink.

Lyndell Kunde - Cloncurry Shire Resident

I had to pay 3 times in 2 years and the last 2 airfares were only 6 months apart for study reasons and exams. This added another $3200 onto all the other costs that we have to pay.

Simon Morrison - Former Cloncurry Shire Resident

I did it for a couple of years EVERY fortnight to see my daughter. The high cost not only took what little I had left but forced me to leave so I could be with my little lady. These extreme costs crippled me.

Lisa Vukusic - Cloncurry Shire Resident

In December 2017 my husband, myself along with our 2 children drove to Victoria rather than fly. It was cheaper to drive than fly even with fuel and accommodation for 2 nights.

Ellisa Davis - Cloncurry Shire Resident

It is Cheaper for me to drive 11 hours to Airlie beach (can leave car with parents) for a 148 - 334 return flight to bris rather than fly out of mount Isa for 730 return for one person.

Casey Behrendorff - Cloncurry Shire Resident

This is what I don’t understand. It’s $800+ return from Cloncurry to Townsville on a Friday and return Monday but if you’re flying from Townsville to Cloncurry return it’s $380 on the same days.

17