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NSW Government Submission

Inquiry into the Operation, Regulation and Funding of Air Route Service Delivery to Rural, Regional and Remote Communities

March 2018

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Table of Contents:

1 Introduction ...... 4

2 NSW Government legislative, policy and planning framework ...... 5

2.1 NSW legislative framework for intrastate air transport routes ...... 5

2.2 NSW framework for licencing regional aviation ...... 7

2.3 Deregulation of intrastate air service routes ...... 7

2.4 Air space regulation and the use of drones ...... 9

2.5 NSW Government strategic direction for regional transport ...... 10

2.6 Aviation and regional planning ...... 11

3 Social and economic impacts of air services ...... 14

3.1 Growing the visitor economy ...... 14

3.2 Regional development initiatives and regional aviation ...... 16

3.3 Importance of regional aviation services for international trade ...... 17

3.4 Importance of regional aviation services for international education ...... 18

3.5 Western impact on regions ...... 18

3.6 Regional air services and NSW Health services...... 19

4 Matters not within NSW regulatory context ...... 22

4.1 Fare pricing determination, subsidisation and equity of airfares ...... 22

4.2 Airport charges for landing and security fees, aircraft type and customer demand 22

4.3 Consistency of aircraft supply and retrieval of passengers by airlines during aircraft maintenance and breakdown ...... 23

4.4 Costs and charges imposed by the Civil Aviation Safety Authority ...... 24

5 Other matters ...... 25

5.1 Slot allocation and regional access to Kingsford Smith Airport (KSA): ...... 25

5.2 Access to and the Visitor Economy ...... 26

5.3 Biosecurity ...... 27

5.4 Skills issues ...... 27

5.4.1 Supply of trained aviation personnel ...... 27

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5.4.2 Skill shortages ...... 28

5.4.3 Aircraft maintenance training and licensing ...... 28

5.4.4 Aviation training and licensing ...... 29

6 Appendix A: Legislative Council Inquiry into regional aviation services...... 31

7 Appendix B: Aviation aspects of NSW regional plans ...... 33

8 Appendix C: NSW Health telehealth services ...... 42

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1 Introduction

The NSW Government welcomes the Rural and Regional Affairs and Transport Reference Committee’s inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities. Transport for NSW (TfNSW) has coordinated this submission on behalf of the NSW Government, with input sought from the Department of Premier and Cabinet, the Department of Planning and Environment, the Department of Industry (including Destination NSW), the Department of Education, the Department of Justice and NSW Health.

The submission covers the following Terms of Reference (ToR):

 the regulatory, planning and policy framework in NSW, including noting relevant Commonwealth laws (ToR b, f, g);  social and economic impacts of air route supply and airfare pricing (ToR a);  matters not within the State regulatory framework (ToR c, d, e and i); and  other relevant matters (ToR h, j)

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2 NSW Government legislative, policy and planning framework

The NSW and Commonwealth Governments both have legislative responsibilities in relation to air services. This submission focuses on the NSW aspects of regulation. The NSW Government position is provided on certain on aspects of Commonwealth legislation affecting access to and the costs of running aviation services, particularly regional services:

 Access (including pricing) at Kingsford Smith Airport (KSA) through the Sydney Airport Demand Management Act 1997 (which deals with slot allocation and management), the Sydney Airport Curfew Act 1996 (which sets the 80 movements per hour cap and the times at which certain flights cannot land or depart) and the combined effect of the Competition and Consumer Act 2010 and Airports Act 1996 (which give the Productivity Commission and Australian Competition and Consumer Commission (ACCC) oversight of prices, including the ACCC’s determination of KSA access prices by regional air services). y Securit (which affects maintenance and costs at regional airports) through the Aviation Transport Security Act 2004.  Safety via the Civil Aviation Act 1988 and the Civil Aviation Safety Authority (CASA).

Local government has ownership and responsibility of local airports through the Local Ownership Plan (ALOP) of the early. 1990s Under the ALOP, the Commonwealth Government transferred its ownership of local airports to local governments and contributed one‐off funding for the maintenance and development of airports at the time of the transfer. Since 1993, the local Governments have a direct role in funding and managing regional airports.

2.1 NSW legislative framework for intrastate air transport routes

The Air Transport Act 1964 (the AT Act) sets out a framework for the regulation and licensing of intrastate air transport routes in NSW. The AT Act requires a licence to operate a regular passenger air service over an intrastate route unless that route has been deregulated. The AT also empowers the Minister to deregulate an air route.

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The AT Act provides that a person shall not carry passengers by an aircraft within NSW unless the person holds a licence for the route. Under s 3, a licence is required where the service operates:

• in accordance with fixed schedules over that route, or • unless otherwise authorised by the Secretary, on 5 or more occasions within any period of 28 days over that route.

However, a licence is not required where the route is a deregulated route or the service is a charter service (s 3(3)).

The Secretary may grant or refuse any application for a licence. Section 6 requires the Secretary to consider the following factors when granting a licence and to have regard to no other matters:

 the needs of the public of NSW, and of the area to be served by the air service proposed;  the allocation of routes to the airlines operating public air transport services in NSW to promote competition and discourage monopoly;  the applicant’s character and suitability to hold the licence applied for;  the effect, if any, on the maintenance and development of adequate and reasonable public air transport services within NSW;  the effect, if any, on the economic development of, or on the environment within NSW;  whether the applicant and the applicant’s aircraft, pilots and passengers will be adequately insured; and  the ownership of, or the extent of the applicant’s rights to operate, the aircraft to be used by the applicant.

A person who contravenes the above is guilty of an offence under the AT Act and is liable for a penalty not exceeding 50 penalty units or imprisonment for a period not exceeding 12 month or for both.

Under provisions of the Passenger Transport Act 2014 ethat hav yet to commence (expected to commence later in 2018), the presumption of regulation will be reversed, that is, all routes will be deregulated unless the Minister declares them regulated.

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2.2 NSW framework for licencing regional aviation

It has been NSW Government policy to issue only one licence per route on regulated routes. A licence therefore means that no other operator can provide service on the licensed route, but does not guarantee the licensed operator will provide the service.

Historically, this provided smaller airlines with protection from competition on low volume routes. The passenger air services market has changed significantly since that time and most intrastate routes in NSW have been deregulated (Section 2.4).

The Secretary may, by having regard to the matters listed in the AT act, grant licences and determine the conditions to which they are subject. The conditions attached to currently regulated route licences include the following:

 provide services at or above the regular service schedule specified in the Route Schedule of the licence;  submit any request for a reduction in the level of services, including a request to withdraw services, to Transport for NSW not less than 2 weeks prior to the proposed implementation of such change;  maintain current insurance cover as specified in the Schedule of the Licence;  provide Transport for NSW, within 2 weeks, a copy of any amendment to, or renewal of, the operator’s Declaration of Insurance; and  provide Transport for NSW with the operator’s annual Audited Financial Statements, within 3 months of the end of the relevant reporting period.

The Secretary may exercise the power (by writing) to revoke, vary or suspend a licence by having regard to the same criteria for granting a licence. A licence‐holder who neglects or fails to comply with any condition attached to the licence is guilty of an offence against the AT Act. Decisions can be reviewed by the Civil and Administrative Tribunal of NSW (NCAT).

The NSW Government imposes no licence fees on regional airline operators.

2.3 Deregulation of intrastate air service routes

The Minister for Transport may, by order published in the Gazette, declare specified routes or classes of routes to be deregulated under s 4A of the AT Act. Before declaring a route to be deregulated, the Minister must consider:

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• The needs of the public; • Fostering competition between airlines; • The development of adequate and reasonable air transport services; and • The economic development of communities.

Deregulation removes the red tape associated with the licence application process, which may act as a disincentive for airlines seeking to establish new services. Deregulating routes also makes it easier for airlines to consider establishing new services and gives local councils the freedom to work with airlines directly to meet the demands of their communities.

A number of routes have been deregulated in recent years, including all intrastate routes not passing through Sydney. In 2015, the NSW Government deregulated regional air routes connecting Sydney with Cobar, Cooma, Mudgee and Narrabri. All four have established new services.

In April 2016, the NSW Government approved the Minister for Transport and Infrastructure declaring all intrastate air routes in NSW, except the route linking Sydney Kingsford Smith Airport with , to be deregulated, subject to formal consultation with councils and airlines. The Minister wrote to local councils in the communities concerned, and the two airlines ( and QantasLink) operating on these routes, seeking their views on the matters that the Minister must consider under the AT Act. Following consultation with the Bega Valley and Eurobodalla communities, the Merimbula‐Sydney and Moruya‐Sydney routes were deregulated on 3 March 2017.

As part of this process, the routes linking Sydney with the regional centres of Bathurst, , Grafton, Narrandera and Parkes are being considered for deregulation when the licences expire in March 2018, subject to community consultation.

The Sydney‐ route was deregulated on 22 December 2017 following Regional Express’s (REX’s) announcement that it would withdraw from the route. REX operated its last service on 27 January 2018. TfNSW understands that the local council secured another airline to operate the route from late January 2018.

The route linking Sydney with Lord Howe Island route will remain regulated, given the unique challenges associated with providing air services to the Island. The Sydney to Moree

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route will also remain regulated for a period of two years, following concerns raised by the Moree council.

2.4 Air space regulation and the use of drones

Australia’s safety laws for drones currently depend on whether the operator is flying commercially or recreationally. Recreational and very small commercial operations are generally exempt as long as they pose no risk or hazard to the public, property or another aircraft.

If the use of drones expands to include routine freight delivery and point to point transport for people, standardised regulations and access arrangements will need to be implemented to ensure safe operations. Investments in infrastructure to support drone use would also be needed.

There are a number of issues that would need to be resolved if drones or other aerial mobility devices were to be used more widely, including safety, noise impacts and landing infrastructure. Improvements in battery technology and vehicle efficiency and reliability would also need to occur.

A national regulatory response around air space, safety and aircraft standards is needed. The NSW Government is investigating the following policy and regulatory initiatives in partnership with the federal Government and other states and territories:

 Review and establish policies around the management of airspace and air safety to enable a potential future of drone aerial mobility.

 Investigate the role drones may play in first and last mile freight delivery and emergency response transport

 Investigate future land use options for aircraft take‐off and landing infrastructure.

Amazon has already proposed how airspace could be segregated to ensure safe and efficient drone use. In this model, the area between 200 and 400 feet is reserved as a “drone highway” where drones operate autonomously and are equipped with “sense and avoid” technologies that allow them to dodge other vehicles and potential hazards like birds and tall buildings (Figure 1).

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If properly introduced, drones could be used for last mile freight delivery as well as surveillance and rapid deployment of emergency personnel or equipment.

Figure 1 ‐ Inspired by Amazon’s proposal for segregated airspace below 500ft for the operation of drones1

2.5 NSW Government strategic direction for regional transport

Future Transport 2056 is the five yearly review of NSW Government’s strategic transport plan. It sets a 40 year vision for integrated transport services across NSW. The vision for regional NSW is integration of ground and air passenger services focused around regional centres as transport hubs that connect on to larger centres. Rapidly developing technology creates an opportunity for new freight and passenger service models with drone technology potentially serving a variety of trips.

The 2017 Draft Future Transport Regional Services and Infrastructure Plan proposes that the most effective way of providing better transport to more potential customers in Regional NSW is through the development of a ‘hub and spoke’ transport network model radiating out from Regional Cities rather than a network just focused on linkages with Sydney. The model will capitalise on the role that Regional Cities and Centres play as hubs for employment and services such as retail, health, education and cultural activities. It will also

1 Draft Future Transport Strategy, p 54 - https://future.transport.nsw.gov.au/wp- content/uploads/2018/plans/Future-Transport-Strategy-2056.pdf 10 of 44

acknowledge the importance of national and state significant transport links (or spokes) that pass through regions.

This network model will be comprised of a range of modes, reflecting the level of demand and distance travelled. The foundations to achieve the vision of improved connectivity, integrated services and better use of capacity in Regional NSW are:

• a strategic framework of customer service principles to deliver greater connectivity to increase opportunities; • a hub and spoke network with multi‐modal interchanges providing connections to local services; and • Innovative, flexible and demand responsive services from small towns and villages

This will mean coordinating on demand, point to point and public ground transport services with regional aviation and airports. It will also mean enhanced cross‐border connections with Queensland, Victoria and South to connect regional NSW communities to services and international gateways closest to them.

Regular Passenger Transport aviation strategy must be integrated with:

 federal, NSW state and council plans, policies, initiatives and legislation;

 a true air service route network (incorporating trunk and thin routes; domestically and internationally, intra‐ and interstate) and an integrated public transport network across all modes of transport (with regional aviation considered of a high order); and

 freight, general aviation, training and health provision for the regions.

2.6 Aviation and regional planning

The Department of Planning and Environment has published Regional Plans for each area of NSW. The Regions used by Planning are consistent with those in the Draft Future Transport Regional Services and Infrastructure Plan. Each Regional Plan is overseen by a Delivery, Coordination and Monitoring Committee, whose membership includes the government agencies responsible for delivering the majority of the proposed outcomes under the Regional Plan. The focus of each Committee is implementation of the Regional Plan for which it is responsible.

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The Regional Plans emphasise that regional airports are important gateways for business, tourism and personal travel and high‐value freight. They provide services for fly‐in fly‐out workers and access to specialist health, education and commercial facilities and are essential for access to regional communities.

Actions in the regional plans promote aviation‐related employment opportunities and precincts and new job opportunities that complement existing airport precinct employment nodes.

The plans identify the pivotal role that airports have as commuter hubs and in supporting the growth of defence‐related industries, light aeronautics industries and the expanding regional tourism market. They are also essential to facilitating the provision of emergency services to regional communities.

The aviation aspects of the Regional Plans are set out in the table at Appendix B.

The Regional Plans are informed by the National Airports Safeguarding Framework (NASF), which was developed by the National Airports Safeguarding Advisory Group (NASAG). NASAG comprises Commonwealth, State and Territory planning and transport officials and representatives from CASA, Airservices Australia, the Department of Defence and the Australian Local Government Association. NASAG was formed in response to policy advice from the then Department of Infrastructure and Regional Development on air space protection requirement for leased federal airports, other airports and aviation facilities.

The NASF is a national land use planning framework that aims to:

1. improve community amenity by minimising aircraft‐noise sensitive developments near airports, and

2. Improve safety outcomes by ensuring aviation safety requirements are recognised in land‐use planning decisions through guidelines being adopted by jurisdictions on various safety‐related issues.

Strategic airports and aviation facilities to which the NASF applies are essential elements of the national and state air transport network and the national defence system. NASF is a guideline only, its purpose mis to infor the legislation of each jurisdiction. On 15 August 2017, the NSW Minister for Planning, Minister for Housing and Special Minister of State,

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Anthony Roberts, approved proposed work to incorporate elements of the NASF into the NSW planning framework.

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3 Social and economic impacts of air services

The presence of regular air passenger services across regional NSW is an important component of maintaining professional services such as medical and legal services. The presence of regular air passenger service may impact on the lifestyle characteristics of the regional centres.

There are many economic factors and demand drivers that impact on the viability of a regional aviation service. Regional centres with more business and social activities are more likely to be able to support an airport and regular air services.

The NSW Government supports the view that continued improvements in the accessibility and reliability of regional air routes and services will create a business and economic platform that attracts international investment, grows trade and creates jobs across the state, in particular by supporting the growth of the visitor economy.

3.1 Growing the visitor economy

The delivery of regular air services is also important to the visitor economy in regional NSW. Visitors and crew spend time in regional towns and cities, spending money locally on accommodation, meals and other products and services. The reduction in frequency, or withdrawal, of regional services can have an impact on this type of visitor expenditure for some destinations.

A thriving visitor economy is vital to the broader NSW economy as it generates substantial revenue and supports a vast array of industries and jobs throughout the State. The term ‘visitor economy’ captures a range of activities that support the provision of goods and services to overnight visitors and have both direct and indirect economic impacts on businesses and communities.

While a successful visitor economy in Sydney is essential for NSW and Australia, tourism is also often a significant part of the local economy in many regional destinations throughout the State. This is why the visitor economy and regional NSW are priority areas in the NSW Government’s economic development agenda.

The visitor economy is an important economic driver for NSW. Tourism directly employs 164,000 people, which translates to one in 23 jobs in the State, almost half of which are in

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regional NSW.2 In the year ended June 2017, tourism expenditure generated a total of $33.2 billion for the State economy, of which $15.4 billion can be attributed to regional NSW.3

In the year ended June 2017, NSW welcomed 30.1 million domestic overnight visitors. Private or company vehicle was the most popular mode of transport for domestic intrastate visitors (87.2%) and for interstate travellers (52.8%) to NSW (Table 1). Air travel was more popular amongst interstate visitors to NSW (43.7%) in contrast to intrastate visitors of whom only 5.2 per cent used air transport.4

Table 1 ‐ Transport used by domestic overnight visitors (% of trip, intrastate & interstate), year ended June 2017

Total Total Mode Holiday VFR5 Business Intrastate Interstate Total NSW Visitors Visitors Vehicle* 84.5% 79.0% 53.0% 87.2% 52.8% 75.9% Air 9.5% 14.5% 42.1% 5.2% 43.7% 17.9% Rail 2.8% 6.0% 3.3% 5.5% 1.6% 4.2% Coach/Bus 1.5% 1.3% 0.9% 1.2% 2.0% 1.5% *Private vehicle or company vehicle

By contrast, international visitors are more likely to use air transport (Table 2).

Table 2 ‐ Transport used by international visitors (% of trip), year ended June 2017

Mode Holiday VFR Business Education Employment Total Air 34.5% 21.6% 18.7% 22.1% 21.9% 30.3% Vehicle 14.1% 57.6% 14.6% 29.6% 31.2% 25.9% Rental Car 7.7% 5.4% 8.0% 2.6% 3.5% 6.4% Rail 3.3% 4.0% 1.8% 5.3% 4.4% 3.4% Coach/Bus 4.6% 1.7% 0.6% 1.6% 2.5% 3.3% *Private vehicle or company vehicle

In 2012, the NSW Government released the Visitor Economy Industry Action Plan,6 which outlines the whole‐of‐Government commitment to the NSW visitor economy and a long‐

2 Source: State Tourism Satellite Account 2015-16, Tourism Research Australia 3 Source: International Visitor Survey and National Visitor Survey, Year ended June 2017, Tourism Research Australia (in overnight and day trip expenditure) 4 Source: National Visitor Survey, Year ended June 2017, Tourism Research Australia. 5 VFR = Visiting Friends or Relatives 15 of 44

term strategy in partnership with industry, and its target to double overnight visitor expenditure by 2020.

The Visitor Economy Industry Action Plan contains a number of specific initiatives related to aviation. Implementation of these actions has focused on the NSW Government’s domestic and international airline partnership strategies as drivers of demand as well as advocacy initiatives with the Commonwealth Government surrounding aviation regulation.

Actions in the Visitor Economy Industry Action Plan include a focus on regional airport infrastructure needs and supporting the enhancement and development of air services to regional airports to facilitate increased visitation to NSW. The NSW Government continues to monitor and implement work plans to achieve delivery of aviation actions supported in the Visitor Economy Industry Action Plan within specified timeframes.

An independent review of the Visitor Economy Industry Action Plan is currently being undertaken and will determine opportunities for growth, including in the aviation sector.

3.2 Regional development initiatives and regional aviation

To increase visitation to, and within NSW, the NSW Government works with international and domestic airlines to develop airfare and accommodation packages to/from Sydney and regional NSW. The NSW Government’s Visitor Economy Industry Action Plan contains a number of specific initiatives related to aviation.

Implementation of these initiatives has focused on the NSW Government’s domestic and international airline partnership as well as the Commonwealth Government’s aviation initiatives. Actions in the plan include a focus on regional airport infrastructure and supporting the development of regional airports to facilitate increased visitation to NSW.

The Government has committed $70 million under the Regional Tourism Infrastructure Fund for 27 regional airport upgrade projects. Projects supported were at Albury, Armidale, Ballina Byron Gateway, Bourke, , Dubbo, Griffith, Lightning Ridge, Lismore,

6 The NSW Government directs the Inquiry to the Visitor Economy Industry Action Plan and the Final Report of the industry-led Visitor Economy Taskforce. Copies are available for download at: www.business.nsw.gov.au/doing-business-in-nsw/industry-action-plans/visitor-economy. 16 of 44

Lord Howe Island, Merimbula, Moruya, Moree, Mudgee, Narrandera, Newcastle, Orange, Port Macquarie, Snowy Mountains (Cooma), Tamworth, Taree, and Wagga Wagga.

In 2016, the NSW Government established a new three year $28 million partnership with Airways aimed at driving additional tourism growth. The partnership has a strong domestic component. It includes joint consumer advertising and trade partner activities promoting airfares and packages that are designed to encourage more Australians to visit NSW and the regions for business and leisure travel. It offers streamlined services on QantasLink to a wide range of NSW destinations including Albury, Coffs Harbour, Dubbo, Lord Howe Island, Port Macquarie, Tamworth and Wagga Wagga. This agreement follows on from the success of the original agreement which ran from 1 June 2013 to 30 June 2016.

The Qantas alliance which includes , , , and as well as a code share agreement with , enables the selling of airfares to the aforementioned regional centres. The ability to have regional NSW airports loaded into the travel trade’s global distribution system contributes to the increased international recognition of NSW destinations beyond Sydney.

The inclusion of regional NSW airports in the travel trade’s global distribution system is especially useful for the regional events industry, particularly those with an international appeal. Examples of regional events that international visitors have travelled to NSW to experience include: the Toyota Country Music Festival Tamworth, Bluesfest Byron Bay, Parkes Elvis Festival, Ironman Port Macquarie, Kennards Hire Rally Australia at Coffs Harbour and the Newcastle 500.

3.3 Importance of regional aviation services for international trade

NSW’s position as Australia’s strongest economy is testament in no small part to the enterprise of our regional economy. Our global reputation for high quality goods and services is driven by innovative business owners with diverse business offerings from both metro and regional areas.

Improved regional aviation services will help businesses in regional NSW to effectively engage with the global economy by maintaining competitiveness and improving productivity. Not only that, it will also help our regional businesses to capitalise on new and

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emerging opportunities in the fast‐evolving global landscape. Any reductions in regional aviation services and aerial routes will adversely affect the viability of regional airport operations with spill‐over effects on cargo services for some of our key agricultural industries. For example, fresh produce from the Northern Rivers region including blueberries, guavas and other produce with short shelf lives are heavily reliant on air freight to ensure delivery to domestic and international markets.

In turn, expansion of aerial regional aviation services infrastructure such as regional airports is likely to positively affect local economies. If additional cargo capacity could be created for regional aviation networks, trade opportunities for time‐critical freight commodities could be capitalised and enhanced with great benefits to businesses in regional NSW. Guaranteeing regional air services to major international airports is critical to ensuring the growth of and connectivity to international markets.

3.4 Importance of regional aviation services for international education

International students make a significant direct contribution to many regional communities. At least 5 per cent of international students live and study in regional areas. To this end, the continuation of high quality, reliable and cost‐effective regional air services is critical to the future growth of universities with campuses located in regional NSW. This is because research7 has shown that international students decide on their study destinations based on a variety of factors including ease of access, lifestyle, course availability and cost of living and study. In 2014‐15, the ABS valued nation‐wide exports from international education at $18.8 billion, making it Australia’s third largest export. InW, NS international education export was valued at $10.3 billion per annum in FY2016/17.

3.5 impact on regions

The NSW Department of Industry is working with the Commonwealth Government, across government clusters and with industry in the development of the Western Sydney Aerospace and Defence Industry Precinct, a world‐leading aerospace and defence industries precinct that will focus on the ‘horizontal’ capabilities of: Information and Communications Technologies (ICT), data analytics, electronics, cyber security, advanced manufacturing and

7 https://internationaleducation.gov.au/research/research-papers/Documents/ValueInternationalEd.pdf 18 of 44

systems integration. These areas have been identified as emerging capabilities for the major aerospace and defence primes and the small to medium enterprises (SMEs) that comprise their supply chains.

The Precinct will be located in close proximity to the future Western Sydney Airport at Badgery’s Creek, a Commonwealth led and NSW Government supported initiative that will contribute to the development of regional aviation and improve air transport, including to and from regions across NSW.

3.6 Regional air services and NSW Health services

State Government agencies utilise aviation services as part of the delivery of Government services which includes health, education and law enforcement activities. In particular, regional airlines have an important role in supporting the delivery of rural and regional health services in NSW.

Examples of regional aviation services of private providers which support NSW local health districts (LHDs) are:

 flying in speciality medical services provided at District Health Services and other health clinics. For example Orthopaedic and Ear, Nose and Throat surgeons travel to Moree from Sydney to attend to specialist clinics and undertake surgical operations each month;  specialist medical services that provide clinics in regional areas include gynaecologists, ophthalmologists, psychiatrists, endocrinologists, paediatricians, rheumatologists and physicians amongst other specialties;  freight providers for blood products and components for renal and chemotherapy services. Many chemotherapy drugs that are regularly flown in have a very limited shelf / refrigerator life and have to be administered within hours of arrival;  flying in Locum Doctors to provide regular services of Emergency Medicine, Anaesthetics, Obstetrics and Surgical Services;  transportation of non‐emergency patient transport across the state using fixed wing aircraft. There are two contracts in place ‐ the Western NSW LHD contract which has a panel of providers consisting of AirMed (Wingaway) and Royal Flying Doctor Service and

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the Northern NSW LHD contract which has SkyMed as a primary provider and AirMed (Wingaway) as a secondary provider.

NSW Ambulance operates five fixed wing aircraft based at Sydney’s Mascot , due largely to the State’s referral patterns, which see over 65% of all patients transferred either to or from the major inner‐city teaching hospitals.

NSW Ambulance covers 809,000 square kilometres, and its aircraft land at over 100 approved ports which are a mix of public, unlicensed and certified strips, within an area extending from to Melbourne and from Bourke to Lord Howe Island.

NSW Ambulance provides both emergency medical and non‐urgent inter‐hospital fixed wing air transport to approximately 5600 patients each year, undertaking nearly 3300 missions and travelling over 8000 hours. The service is provided when required and does not operate a regional passenger transport type service.

The withdrawal of regular passenger transport services to many NSW country towns has meant that NSW Ambulance air services is one of only a small number of users, and in some cases the only user, of a rural airstrip. In order to ensure the maintenance of adequate health services, it is important to ensure appropriate maintenance of the surface, refuelling facilities, fences and amenities continue.

A number of improvements to airport facilities could enhance safety at some locations, including:

 runway lighting (which would enable 24 hour operations);  instrument approach ‘Area NAVigation’ (RNAV) which will allow aircraft to operate in most weather conditions, e.g. low cloud and low visibility;  a bitumen surface, which would allow all weather operations, better performance capabilities and limit damage to aircraft components.

Telehealth is the delivery of health care at a distance using tools ranging from web‐based videoconferencing to wearable technologies. It complements face‐to‐face consultation and offers significant benefits for patients, their carers, health care workers and the health system as a whole. Telehealth has been particularly important in rural, remote and regional

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areas of NSW, where it has had a positive impact on patients and clinicians, through reduced travel time and improved timely access to specialists and advice.8

While telehealth services can help to decrease the reliance on rural health air services, they cannot replace all face to face health services. Appendix B provides details of how the Burns Network and Ophthalmology Network use telehealth, and also its use in a number of LHDs.

8 NSW Health: Telehealth Framework and Implementation Strategy 2016–2021 http://www.health.nsw.gov.au/telehealth/Publications/NSW-telehealth-framework.pdf

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4 Matters not within NSW regulatory context

The terms of reference address a range of matters which are not within the jurisdiction of NSW regulation, some of which are matters of Commonwealth regulation or matters for the market itself. This section of the submission discusses aspects of these matters, in particular where relevant issues were raised or recommendations made in the report of the 2013 Legislative Council Inquiry (Appendix A).

4.1 Fare pricing determination, subsidisation and equity of airfares

The pricing of air fares is a matter for operators of aviation services. The NSW Government does not determine or regulate air fares in NSW and does not provide any passenger subsidies for air services.

4.2 Airport charges for landing and security fees, aircraft type and customer demand

Issues relating to charges at Sydney Airport were raised in a number of submissions to the NSW Legislative Council Inquiry in 2013‐14 (see Appendix A for detail about the inquiry).

Airport charges are a matter dealt with through Commonwealth law, in particular the Competition and Consumer Act 2010 (CC Act) and Airports Act 1996.

Under the CC Act and a declaration made under that Act, the ACCC assesses notifications of proposed price increases for aeronautical services and facilities provided to regional air services at Sydney Airport.

A new Declaration (No 93) and Direction (No 35) were made with effect from 1 July 2016 to 30 June 2019. The 2016 Declaration and Direction were in substantially the same terms as those they superseded.

The Inquiry Report noted that Sydney Airport Corporation had not increased its charges for services to regional airlines since 25 May 2001. The Corporation’s application for a 2.9 per cent increase to terminal, runway and passenger security charges was rejected by the ACCC in 2010.

Some submissions sought that the declaration be expanded to cover other services at airports. The Inquiry recommended that the NSW Government write to the Commonwealth

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to encourage this outcome, and the Government’s response supported this recommendation.

The NSW Minister for Transport and Infrastructure, the Hon Andrew Constance MP, and the Minister for Regional Development, Minister for Skills and Minister for Small Business, the Hon John Barilaro MP, jointly wrote to the former Commonwealth Minister for Infrastructure and Transport, the Hon Darren Chester MHR in relation to price regulation at Sydney Airport. The letter encouraged consideration of extending the scope of the current price regulation to include other aviation services such as hangar space, airline office space, storage facilities in order to provide certainty to NSW’s regional aviation industry.

At regional airports, airport charges are a matter for the councils that own and run the airports, often in negotiation with air service operators. The 2013‐14 Legislative Council Inquiry noted that ‘While airport fees can be a source of consternation for the parties involved the committee believes that both airport owners and air service operators are fully aware of the tenuous nature of the aviation sector and are motivated to ensure fee setting is done in a manner that enables both parties to achieve mutually beneficial outcomes’ (para 5.136).

4.3 Consistency of aircraft supply and retrieval of passengers by airlines during aircraft maintenance and breakdown

The NSW Government plays no role in addressing issues of aircraft supply or retrieval of passengers during aircraft maintenance and breakdown.

Sustainability issues on low‐volume routes can lead to the withdrawal of operators on marginal routes over time. The NSW Government has taken action on a number of occasions where airlines that were licenced to operate particular routes withdrew from those routes, including by expediting licensing processes to find new operators. However, in the current context of a more deregulated approach to regional aviation, the Government’s response has been to move out of the way by deregulating the affected route to allow the local council to negotiate directly with airlines for replacement services. The most recent example of this is Taree (see Section 2.5).

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4.4 Costs and charges imposed by the Civil Aviation Safety Authority

Costs and charges imposed by the Civil Aviation Safety Authority were considered in the NSW Legislative Council Inquiry in 2013‐14 (see Appendix A). The Committee observed that:

Regional airports spend considerable resources on complying with the Civil Aviation Safety Regulations (CASRs) and can find it more difficult to absorb these costs in comparison to larger airports.

The Committee recommended that the NSW government write to the Commonwealth to raise the concerns of regional airports about being overburdened by the frequent changes to this legislation.

As mentioned in Section 4.3, the NSW Minister for Transport and Infrastructure and the Minister for Regional Development, Skills and Small Business have written to the former Commonwealth Minister for Infrastructure and Transport noting the concerns of regional airports about changes to civil aviation safety legislation and encouraging consideration of the impact of changes to security and safety regulations on regional airports and funding support for any regulatory changes that require updates to airport infrastructure.

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5 Other matters

Term of reference j for this Inquiry invites submissions on any matter related to the subject of the Inquiry. Several matters considered by the 2013‐14 Legislative Council Inquiry (Appendix A) may be relevant to this Inquiry, in particular slot allocations, movement caps, reserved regional spots and preservation of access of regional air services to Sydney Airport, as well as a range of matters concerning skills (migration and training). These matters are discussed in this section.

5.1 Slot allocation and regional access to Kingsford Smith Airport (KSA):

Regional airline access into KSA is regulated by the Commonwealth Government under the Sydney Airport Demand Management Act 1997 (DM Act). This Act provides for a Slot Management Scheme for the allocation of gate movements at Sydney Airport. Day to day administration of the Slot Management Scheme (appointed by Minister for Transport and Regional Development on 29 March 1998) is undertaken by Airport Co‐ordination Australia (ACA) as the Slot Manager. ACA is a company jointly owned a number of major airlines, the Regional Airlines Association of Australia and Sydney Airport Corporation.

The airport Slot Management Scheme requires that passenger aircraft seeking a slot for a new service must have a minimum of 18 seats.

The DM Act limits movement at Sydney Airport to a Maximum Movement Limit of 80 aircraft movements per hour outside of the curfew period. The curfew is regulated by the Sydney Airport Curfew Act 1995 (the Curfew Act) and operates between 11 pm and 6 am. An operator must use the tslo allocated to them for at least 80% of the time over a season or lose the slot, subject to the Slot Management Scheme rules and exceptional circumstances.

Special rules have been established in the Slot Management Scheme to maintain permanent regional service slots, based initially on historical precedence and allocation in the first scheduling season of the scheme's operation. This arrangement is also known as the “regional ring fence”. KSA currently has approximately 20% of its peak slots allocated to NSW regional air services.

Recommendations 3, 4 and 5 of the Legislative Council Inquiry of 2013‐14 (Appendix A) related to preserving and improving the access of regional air services to Sydney Airport.

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The NSW Government has accepted those recommendations and has written to the Commonwealth Government to raise these issues. Matters included for consideration were:

 An increase of the movement cap from 80 to 85 movements per hour during peak periods;  The removal of the 15 minute movement cap;  The removal of turboprop air craft from the movement cap;  An increase in movements in the curfew shoulder to the level allowed by the Sydney Airport Curfew Act 1995; and  Maintaining the protections of the Permanent Regional Service Series to ensure convenient access to Sydney by air from NSW regional communities;  Assessing the potential to adopt the committee’s recommended approach to slot allocation, that is allocating a limited number of the reserved regional slots into Sydney Airport to specific regional communities.

5.2 Access to Sydney Airport and the Visitor Economy

The NSW Government, in the Visitor Economy Industry Action Plan, supports the better utilisation of the existing infrastructure at Sydney Airport in accordance with current legislation and improved transport and access to, and around, the Airport precinct. These changes will help to ensure that Sydney Airport is operating at world’s best practice and open further opportunities for all three airline markets – international, interstate and regional.

The Visitor Economy Industry Action Plan process showed that there is a very high level of utilisation by the regional airlines of the protected regional slots. Only very few regional slots remain available during peak periods.

The NSW Government supports calling upon the Commonwealth Government to relax the current restrictions on aircraft movements at Sydney Airport (Section 5.1) to facilitate growth in visitor arrivals.

The NSW Government supports better utilisation of the existing infrastructure through increasing the movement cap from 80 to 85 movements per hour during peak periods, and

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increasing movements in the curfew shoulder to the level allowed by the Sydney Airport Curfew Act 1995. The Government does not support removal of the curfew or changes to protections for existing regional flights. Greater access for regional aviation provides an opportunity to increase dispersal of visitors to regional NSW. At present, only a very small percentage of all passenger movements at NSW airports occur outside Sydney Airport. Increasing the passenger movement capacity and capability of regional airports can help spread the benefits from a growing visitor economy and ensure that NSW enhances its competitiveness in comparison to other States.

5.3 Biosecurity

The inquiry should consider the biosecurity impacts of increased passenger movements through regional and rural airports, especially international movements.

It should also consider freight movements, with increasing exports of high‐value agricultural products from regional airports overseas that will require increased biosecurity surveillance.

The Western Sydney Airport should be of greater focus, given the significant potential for agri‐freight from regional areas, and the logistical and biosecurity implications of these movements.

5.4 Skills issues

In April 2017, the Commonwealth Government removed Aeroplane Pilots and Helicopter Pilots from the Short‐term Skilled Occupation List (STSOL). In January 2018, both occupations were reinstated for positions that are located in regional Australia only. Prospective applicants are eligible to apply for 457 visas which are valid for up to two years. The Regional Aviation Association (RAA) advocates that pilots should be able to access longer term (four year) visas, stating that skills shortages within the aviation industry are still prevalent in regional Australia and pose a challenge to the efficient operation of air route service delivery to rural, regional and remote communities.

5.4.1 Supply of trained aviation personnel

Regional airports require a supply of skilled workers to be viable and expand. The aviation sector requires flight crew, ground and maintenance staff with the necessary skills to enable the safe operation and maintenance of aircraft, and the safe passage and care of 27 of 44

passengers. It is important that this Inquiry looks into barriers to the supply of a skilled workforce to ensure the viability of air routes to regional, rural and remote airports.

5.4.2 Skill shortages

There is some evidence of skill shortages in aviation‐related occupations as indicated by their inclusion on the visa‐related ‘Combined current list of eligible skilled occupations’9 managed by the Department of Home Affairs. These are aeroplane pilots and three aircraft maintenance engineer occupations (avionics, mechanical and structures). Although all these occupations are relevant to regional air routes, current visa provisions relating to aeroplane pilots require them to be based in regional areas, suggesting a particular shortage in regional areas. The aeroskills sector also faces an ageing workforce with the average age of Licenced Aircraft Maintenance Engineers (LAMEs) being over 5010.

5.4.3 Aircraft maintenance training and licensing

The NSW Government subsidises 13 vocational qualifications related to aircraft maintenance from the Aeroskills (MEA11) training package. Key qualifications in aeroskills include: the Certificate II in Aeroskills, Certificate II in Aircraft Line Maintenance, and Certificate IV in Aeroskills (Mechanical). In late 2017, the Certificate II in Aircraft Line Maintenance was added to the NSW Skills List to support demand for entry level maintenance workers at ’s fleet maintenance base at Newcastle Airport.

While skilled migration can help to address shortages of skilled aircraft maintenance personnel, there needs to be sufficient numbers trained in Australia particularly to support regional, rural and remote airports. However, there are a number of constraints to ensuring supply of trained aircraft maintenance personnel. One is uncertainty regarding the direction of Civil Aviation Safety Authority (CASA) regulations and whether existing vocational qualifications will enable workers to remain CASA compliant.

9 Department of Home Affairs (2017), Combined Current List of Eligible Skilled Occupations, accessed 18 January 2017 . 10 Civil Aviation Safety Authority (2015), Annual Report 2014-15, accessed 17 January 2017, . 28 of 44

Another stakeholder identified barrier is differences between military and civil training for aircraft maintenance personnel. This means that skills may not be transferable to the private sector and may not meet CASA regulations. Without further training, this can limit the supply of potential workers from the defence sector.

A further constraint is the limited number of Registered Training Organisations (RTOs) delivering MEA (maintenance) qualifications in NSW outside of the military. In NSW, apprenticeship and traineeship training in MEA qualifications is predominantly provided by two RTOs, which may limit the ability of regionals employer to access RTOs, and hinder training opportunities.

Outside of the military, employers of MEA apprentices and trainees are predominantly in three areas – Mascot, Bankstown and Williamtown ‐ resulting in thin markets in much of regional NSW.

5.4.4 Aviation training and licensing

The NSW Government subsidies 12 vocational qualifications related to air transport professionals (including pilots) from the Aviation (AV108) training package on the NSW Skills List. Key qualifications for aviation include: Certificates II and III in Aviation (Flight Operations), Certificates II and III in Aviation (Ground Operations and Services), Diploma of Aviation (Commercial Pilot Licence ‐ Aeroplane), Diploma of Aviation (Instrument Flight Operations) and the Diploma of Aviation (Flight Instructor).

There is evidence of pilot shortages, especially in regional areas. While skilled migration can help mitigate skill shortages, there also needs to be a sufficient number of pilots trained in Australia. For example, in 2016 there were 48 enrolments in NSW in the Diploma of Aviation (Commercial Pilot Licence ‐ Aeroplane). It is unclear why the level of enrolments was so modest. Anecdotal evidence suggests that increased regulation for flying schools has led to increased costs and impacted on the cost of training.

The Commonwealth’s VET Student Loans cap of $75,000 for higher level aviation qualifications at diploma level and above (compared to the next highest loan cap of $15,000) indicates the expense involved in completing aviation qualifications. The entry level qualification – the Diploma of Aviation (Commercial Pilot Licence ‐ Aeroplane) ‐

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provides the underpinning knowledge but obtaining a commercial pilot licence requires flying time with a trained instructor, which adds substantially to the cost of the training.

Stakeholder consultation also suggests that coupled with a long lead time for training, there is a strong incentive for pilots to capitalise on the cost and time invested in their training by seeking more highly paid employment in major airports on longer or international air routes, rather than employment at small regional airports. Another example of the challenges of recruiting personnel in regional areas is provided by the major airline Regional Express (REX) which has established its own pilot academy to train new pilots for its operations.

In terms of ground personnel, some regional airports may be constrained in attracting and retaining people where the region has an ageing and/or declining workforce.

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6 Appendix A: Legislative Council Inquiry into regional aviation services

On 13 December 2013, the NSW Legislative Council Standing Committee on State Development (the LC Committee) announced the terms of reference for an Inquiry into regional air services (the 2013 LC Inquiry). The terms were:

1. Cost of access to Sydney Airport, regional airports and other landing fields including: a. airport operator landing fees imposed at various airports and services and facilities included in those fees; b. methodology for calculating landing fees for different classes of aircraft. 2. Financial management and viability matters impacting on RPT operators, including: a. economics of operating various types of aircraft, including modern single engine turbine compared to older twin engine piston aircraft; b. impacts of compliance costs, including per passenger costs; c. suitability of “hub and spoke” systems for potential routes for smaller passenger numbers; d. the viability of passenger loading for different classes of aircraft. 3. Economic impact on regional communities of gaining or losing RPT services, including: a. the local business community; b. the impact on general aviation and regional airport management of the gain or loss of RPT services to regional centres; c. the potential for future economic development; d. impacts for local, state and Federal governments, including licencing arrangements for services less than 50,000 passengers per annum. 4. Potential for development of future modern RPT aviation including: a. opportunities for regional aviation manufacturing and servicing; b. the development and supply of sufficient numbers of trained and skilled aviation personnel; c. local, state and Federal government arrangements for staff travel; d. opportunities for dual use RPT services to include both freight and passenger legs on the same routes. 5. Any other matter relating to the provision of aerial regular passenger transport services.

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The LC Committee received 65 submissions and held seven public hearings, and tabled its final report on 23 October 2014. A copy of the final report, which includes the terms of reference and the recommendations of the LC Committee, is available at https://www.parliament.nsw.gov.au/committees/inquiries/Pages/inquiry‐ details.aspx?pk=2063#tab‐reports.

The NSW Government response was delivered on 5 March 2015 and contained responses to the Inquiry’s 21 recommendations ranging from a more coordinated approach to the provision of air services to the reduction of red tape with the aim of making it easier to conduct business in NSW. A copy of the response is at Appendix B available at https://www.parliament.nsw.gov.au/committees/DBAssets/InquiryReport/GovernmentRes ponse/5586/Government%20response%20‐%20Regional%20Aviation%20Services%20‐.pdf.

=

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7 Appendix B: Aviation aspects of NSW regional plans

Plan Direction Rationale Actions Identified

Central West Direction 20: The ongoing operation and expansion of air travel and related 20.1 Identify development opportunities for & Orana Enhance facilities is essential to regional economic growth. Maintaining appropriate and complementary land uses and Regional access to air 20 per cent of flight slots at Sydney Airport for regional NSW limit the encroachment of incompatible Plan 2036 travel and services is critical in supporting business and providing access development around Bathurst, Orange, Dubbo, public for regional communities and fly‐in fly‐out workers. Mudgee and Parkes airports. transport Large commuter airports at Bathurst, Orange, Dubbo, Mudgee 20.2 Support the continued allocation of 20 per and Parkes also cater for chartered flights for fly‐in fly‐out cent of flight slots at Sydney Airport to regional workers. Other airport and aerodrome facilities provide NSW services and seek a greater allocation in aviation bases for agricultural services, private operators and peak periods. recreational gliding. 20.3 Work with local transport operators and Airport and aerodrome facilities also support the Royal Flying community transport providers to investigate Doctor Service medivac and NSW Rural Fire Service operations delivery models for flexible transport and based in Dubbo. determine what works best for different areas. 20.4 Investigate opportunities and prepare strategies to improve transport links between the region’s towns and villages, and its regional cities and strategic centres.

Far West Direction 7: Due to the distance from capital cities, air travel is crucial in 7.1 Protect airports and airfields from the Regional Improve connecting to other areas quickly. The ongoing operation and encroachment of incompatible development. Plan 2036 regional air expansion of affordable air travel and related facilities will be 7.2 Support the continued allocation of 20 per connections essential to influencing future economic growth. cent of flight slots at Sydney Airport to regional Regular commercial passenger air services operate to and NSW services and seek greater allocation in

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Plan Direction Rationale Actions Identified from Broken Hill and Cobar. Some residents access regular peak periods. passenger services from Dubbo, Mildura, Moree and Griffith 7.3 Work with stakeholders to investigate and in adjacent regional areas. prioritise projects to expand the capacity of These inter‐regional connections provide opportunities for . direct air connections to all major metropolitan cities except 7.4 Investigate opportunities to leverage Perth and Darwin, enhancing access to high level social and economic growth in the Far West from medical services. Local airport and aerodrome facilities also proximity to . support the Royal Flying Doctor Service medivac and NSW Rural Fire Service operations based in Broken Hill and Dubbo, along with private aircraft services business, industry and tourism. The NSW Government’s response to the 2014 Inquiry into Regional Aviation Services a noted that the Department of Premier and Cabinet had undertaken a feasibility study into expanding commercial air services to remote communities in western NSW, including Lightning Ridge, Walgett, Brewarrina and Bourke. The Western Regional Transport Plan (2013) proposed a similar investigation into commercial air services to the western region.

Hunter Direction 2: Greater Newcastle is home to two nationally significant 2.1 Promote diversification of operations at the Regional Enhance gateways, Newcastle Airport and the Port of Newcastle. These Port of Newcastle and the Newcastle Airport Plan 2036 connections assets have enormous potential to enhance the connectivity and enhanced connectivity to the Asia‐Pacific. to the Asia‐ of the Hunter to the Asia‐Pacific region and beyond. 2.2. Develop and review strategies and precinct Pacific Newcastle Airport currently caters for around 1.1 million plans for the global gateways and surrounding through passengers each year, which will almost double by 2030. It is lands to support their growth, diversification global 34 of 44

Plan Direction Rationale Actions Identified gateways significant to unlocking the potential of the region’s tourism and sustainability. industry and providing an opportunity for the Hunter and 2.3. Prepare local plans that adequately Central Coast regions to export services and skilled labour to respond to air, noise and other issues relevant

other parts of Australia and internationally. to the gateways to protect their ongoing The port and airport place high demands on land and operations and expansion. infrastructure, affect surrounding lands and require levels of separation from adjoining land uses to sustain their success. They have the capacity to generate associated industries and regional and local employment.

Direction 4: Freight and logistics contributed $58 billion to the NSW gross 4.1 Enhance inter‐regional transport Enhance state product (14 per cent) and this is expected to grow by connections to support economic growth. interregional 2036. The Hunter has several national freight networks linking linkages to the State’s economy to the global transport gateways of the 4.2 Work with stakeholders to upgrade support Port of Newcastle and Newcastle Airport. transport network capacity in line with economic changing demands. growth The planned upgrades to Newcastle Airport will permit more people to travel to and from the region and will accommodate 4.6 Investigate opportunities for logistics and international passengers from the Asia‐Pacific. freight growth and other complementary land can provide additional capacity for domestic travel and uses around airports, leveraging investments at improve inter‐regional passenger connections. Taree and Newcastle airports.

Draft STRATEGY Williamtown is a nationally significant aviation and defence Newcastle Airport, the NSW Government and Greater 1.2 – hub, with a major role in the Asia Pacific. The precinct Port Stephens Council will provide development enabling infrastructure and address Newcastle Grow the includes the Newcastle Airport, the RAAF Base and the environmental constraints to facilitate the Metropolita airport and Williamtown Defence and Airport Related Employment Zone growth and development of the Williamtown n Plan (2017) aerospace (DAREZ). Newcastle Airport flew a record 1.25 million

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Plan Direction Rationale Actions Identified and defence passengers in 2016 Defence and Airport Related Employment Zone precinct at By 2036, it is projected that Newcastle Airport will fly 5 million (DAREZ) for aerospace and defence industries Williamtown passengers annually. The anticipated growth and expansion of and associated complementary uses. passenger flights will need to be supported by improved public transport connections between the Airport and Newcastle City Centre, as well as runway surface and freight handling capacity upgrades. New opportunities will also arise from these improvements, including being able to undertake maintenance of domestic and defence aircraft. The operational airspace of Williamtown will be protected to enable its ongoing growth.

Illawarra‐ DIRECTION Metro Wollongong (Direction 1.1) and the port of Port Kembla ACTION 1.3.3 Support the growth of defence‐ Shoalhaven 1.3 Grow (Direction 1.2) are key drivers of economic growth in the related industries at the Albatross Aviation Regional regional region. The region’s economic prosperity will also be Technology Park Plan strategic supported by ACTION 1.3.4 Grow the tourism and light assets growing the economic competitiveness of: aeronautics industries, and the emergency to support services roles of the Illawarra Regional Airport. • Nowra Centre; economic The NSW Government will work with • Shellharbour Centre; growth Shellharbour City Council to: • Albatross Aviation Technology Park; across the • prepare and implement an Illawarra Regional region • Illawarra Regional Airport; and Airport Strategic Business Plan; and • The Waterfront, Shell Cove. • grow the tourism and light aeronautics Maximising the growth potential of these places will require industries, and emergency services roles of the further investment, coordination and, in some cases, the Illawarra Regional Airport to generate further

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Plan Direction Rationale Actions Identified review of planning and development controls. economic growth through the Strategic The Illawarra Regional Airport is a licensed airport, owned and Business Plan. operated by Shellharbour City Council. The catchment area for the airport extends south to Nowra, west to Bowral and north to the southern suburbs of Sydney. In excess of 300 people are either employed full‐time or are regular volunteers at businesses located in the airport.

New England Direction 15: Regional airports are important gateways for business, 15.1 Promote aviation‐related employment North West Facilitate air tourism and personal travel and high value freight. They also opportunities and precincts. Regional and public provide services for fly‐in fly‐out workers and access to 15.2 Protect airports from the encroachment of Plan 2036 transport specialist health, education and commercial facilities. incompatible development. infrastructure Local growth management strategies should investigate opportunities for compatible and complementary aviation– related industry on land adjoining airports. Airport facility operations must not be impeded by the encroachment of incompatible development and retail and bulky goods uses must be avoided in these areas. The NSW Government does not support changes to protections for existing regional flights to Sydney Airport, noting the importance of this access to regional communities. Continued access to South East Queensland via will also support economic and social links.

North Coast Direction 7: Regional cities have employment, health, education, 7.1 Prepare action plans for regional cities that: Regional Coordinate residential and airport precincts that are capable of • promote new job opportunities that the growth of

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Plan Direction Rationale Actions Identified Plan 2036 regional promoting employment growth for the entire North Coast. complement existing employment nodes cities around existing education, health and airport

precincts.

Direction 8: Over 12 million people visit the North Coast annually and the Promote the growth of region will remain a major tourism destination, particularly tourism given the greater access from an upgraded . Destination management plans or other tourism focused strategies will showcase existing tourism sites and activities,

build relationships with the regional and international airports of Ballina‐Byron, Coffs Harbour, Port Macquarie, Lismore, Newcastle and the Gold Coast, and capitalise on new and

emerging trends such as the growing Asian tourism market. Direction 10: Facilitate air, The North Coast’s air, rail and public transport systems are rail and major economic assets that will help to underpin economic public growth. transport Airports are important gateways for business, tourism and 10.1 Deliver airport precinct plans for Ballina‐ infrastructure personal travel, as well as high‐value freight. Airport precinct Byron, Lismore, Coffs Harbour and Port plans will be developed to investigate opportunities for Macquarie that capitalise on opportunities to compatible and complementary air transport‐related industry diversify and maximise the potential of value‐ and business uses on land adjoining airports. The adding industries close to airports. development of retail and bulky‐goods uses should be 10.2 Consider airport‐related employment avoided in these areas. opportunities and precincts that can capitalise Opportunities to further increase access to the Gold Coast on the expansion proposed around Gold Coast

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Plan Direction Rationale Actions Identified Airport will be explored to leverage the benefits its proximity Airport. brings to the north of the region and the export opportunities for North Coast produce and products.

Riverina Direction 19: Regional economic growth will be underpinned by the 19.1 Protect airports from the encroachment of Murray Support and ongoing operation and expansion of air travel and related incompatible development, including airports in Regional protect facilities across the region.27 Wagga Wagga, Albury, Griffith and Narrandera. Plan 2036 ongoing Maintaining 20 per cent of flight slots at Sydney Airport for 19.2 Support the continued allocation of 20 per access to air regional NSW services is critical to supporting business and cent of flight slots at Sydney Airport to regional travel providing convenient air travel to Sydney for regional NSW services and seek a greater allocation in communities. peak periods. The region’s largest commuter airports are located in Albury, Griffith, Wagga Wagga and Narrandera–Leeton. In addition to traditional domestic uses, air‐based operations support essential community services, such as the Royal Flying Doctor Service, and defence and training operations, such as the Royal Australian Air Force, which has a substantial airbase at Wagga Wagga. The Australian Airline Pilot Academy at Wagga Wagga trains local pilots in what will be an increasingly important sector for economic growth. Airport facilities need to be protected from the encroachment of incompatible development that could impede air service operations. Future opportunities for airport expansions need to be resolved through land use planning.

South East South East will drive economic growth in the region. It is 1.1 Protect Canberra Airport’s current and Tablelands and expected to generate over 21,000 jobs by 2030 and contribute future operations by maintaining restrictions on

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Plan Direction Rationale Actions Identified Regional Tablelands $2.42 billion per year to the regional economy. As there is no the location of nearby residential development. Plan 2036 Regional Plan aircraft noise curfew, its international services are 1.2 Enhance data sharing on freight movements Direction 1: unconstrained. Its passenger terminal has capacity to offer between the NSW and ACT Governments to Leverage more services, and the master planned freight precinct offers improve freight planning and management. access to the a realistic alternative to Sydney Airport. Canberra Airport’s 1.3 Plan for compatible and complementary global ongoing ability to operate and expand its services cannot be economic development opportunities around gateway of jeopardised by residential development. the region’s airports, including in Moruya and Canberra Some freight routes across the ACT border are inefficient, and Merimbula. Airport. this will intensify as the South East and Tablelands grows.

Improving the ability to move freight across the ACT border will better enable agricultural producers to access export markets through the airport. Consistent information on

freight movements across jurisdictions will improve the planning for and efficiency of the freight network.

Networking Canberra Airport’s international operations into the region’s other airports, including those in Moruya and

Merimbula, will increase exposure to other markets. Existing master plans aim to develop transport, tourism and

commercial precincts around these regional airports.

Direction 4: The new Western Sydney Airport will be an important Leverage 9.5 Address seasonal transport capacity aviation, innovation and business hub increasing access to a growth shortages efficiently through initiatives such as: range of employment opportunities for the South East and opportunities Tablelands workers living in commuting distance. • branding public transport services; from Western • raising awareness of travel options; • supporting seasonal transport options such as 40 of 44

Plan Direction Rationale Actions Identified Sydney. holiday bus services and/or park and ride services; and

• introduce flexible and on‐demand transport

options Direction 9: Visitors to the South East and Tablelands enjoy year‐round Grow tourism access to mountains, coasts and rural hinterlands, as well as in the region. Canberra’s world‐class cultural institutions, such as the National Museum of Australia, the Australian War Memorial and the National Gallery of Australia. The promotion of the diversity of experiences in the broader ‘Canberra region’ will recognise the South East and Tablelands as an important component of the ACT’s visitor economy. Canberra Airport’s international links will create a global gateway to significant visitor destinations in the capital and surrounding region. Western Sydney Airport will provide another gateway for visitors. The region will also continue to be promoted as a destination for local visitors from Sydney and the Illawarra.

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8 Appendix C: NSW Health telehealth services

Burns network

The three NSW burn units at Royal North Shore Hospital (RNSH), Concord Repatriation General Hospital (CRGH) and Children’s Hospital Westmead (CHW) provide telehealth support for rural and remote burn injured patients.

The benefits of telehealth in burn care to decrease the use of NSW rural health air services include:

 Triaging acute burn injuries so only the appropriate patients are transferred to the burn units for clinical care

 Giving support to co‐manage patients in rural and remote patients with local clinicians both for more minor burn injuries hence not requiring transfer to a burns unit for assessment and care

 Post discharge from burn units to support and co‐manage the ongoing treatment requirements for burn patients, decreasing the need for visits to metropolitan based burn units.

Ophthalmology network

Telehealth is useful in some areas of ophthalmology, however cannot be used in others. For example,

 Telehealth works when retinal photographs can be taken remotely and transmitted to be reviewed by experts in a tertiary metropolitan setting

 Telehealth doesn’t work with manual techniques, including subjective refraction and of course surgery.

 Cataract surgery camps are a good example of providing remote services at least expense, e.g. Mark Loane clinics in Cape York.

 The Ophthalmology network supports:

o the wider role out of telehealth services to improve access for rural patients to ophthalmic specialists without the need for extensive travel, and

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o the up‐skilling of remote primary care practitioners in eye and vision skills for less complex ophthalmic services.

 While it is believed telehealth can reduce the need for fly‐in fly‐out visits, there will still be a need to fly rural patients, when required, to metropolitan specialist centres of excellence for complex care.

Local health district (LHD) use of telehealth

The following describes impact of telehealth initiatives on a number of regional LHDs:

Western NSW LHD

Telehealth is an option readily available for inpatients of the LHD. All hospitals have the ICT capability for suitable inpatients to have a conference with a specialist. Clinics for example are using videoconference for fracture clinic reviews where inclusion criteria are matched. The number of clinics continues to increase. Inpatient transfers may include a telehealth solution designed to minimise the need for interfacility transfer.

Murrumbidgee LHD

The appropriate utilisation of Telehealth and other videoconferencing solutions has reduced all types of travel by patients and providers. The MLHD utilises a broad skill mix of nursing and allied health staff in outreach sites who provide support to medical officers located in hub sites via telehealth. Physical assessment of patients is made possible by nursing and allied health staff who communicate this information to the supporting medical officers in association with real time video of the assessment, with the patient. This has led to a reduction in the need for travel by patients, providers and support people. This has also led to a reduction in travel associated costs along with a reduction in the risk associated with road and/or air travel. There is still a need for some patients to travel for specialist care.

Southern NSW LHD

This has had some impact but extremely limited.

Far West LHD

Whilst telehealth/ICT solutions have assisted with service provision, they have not replaced the need for people to travel away for specialised health services.

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Northern NSW LHD

New models of care including telehealth have reduced the requirement for flights for diagnostic and definitive care. In NNSWLHD the successful recruitment of specialist medical staff at Lismore, Tweed and Grafton Base Hospital has reduced the requirement for people to fly to metropolitan centres for specialist treatment.

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