CABINET MINUTE DECISION NO. BRISBANE, 007'4- SUBJECT:. ___Air______________________ Services to Weipa and Horn Island . _______ - ------------ ------------(Submission No·----=~"--'t;J""'-"-1-7--"//.0L..=__ a.m. 50Copies Received at coffl&:rAI ~ {rol? H!?/11/LL.) e ;opies Made CIRCULATION DETAILS Premier's f' ( 1 MR GOSS 21 ~opy of relevant I :(;?, I "\miccinn !:ltt~t"'ht:l d - 2 MR BURNS 22 Housing & LG Police & Emerg. 3 MR MACKENROTH 23 Services ( 11 4 MR DE LACY 24 Treasury 0PY of relevant 1Sui )ffij~~inn !:!tt~r-h"·~ Tourism, Sport 5 MR GIBBS 25 & Racing ~ <" ,... 6 MR HAMILL µOpy of relevant 26 Transport uopy of relevant , ~~I hmi~c-:-._ . ~ ~._.,. L..--i~-·- - - r ClLla\;J II: 'U ..,n ,,..,..,1v1 I d.llaCne d - 7 MR WARBURTON 27 DEVET & IR Resource Indust 8 MR VAUGHAN I 28 - 9 MR CASEY 29 Primary Indust 10 MR McELLIGOTT 30 Health Education 11 MR BRADDY 31 Env & Heritage 12 MR COMBEN I 32 13 MR WELLS 33 Attorney-Gener< 1 Fam Serv & /:,. 14 MS WARNER 34 ""''""opy of relevant Ab&Is Affrs SIi . I hn-,inr-i-- _ , d Justice and - I --"'"' I Cllld\;( It::: 15 MR MI LLINER 35 I Correct Serv I 16 MR McLEAN 36 Admin Services Manuf & Commer< e 17 MR SMITH 37 Managemen · 18 MR EATON 38 Land PSMC 19 GOVERNOR 39 20 Master File 40 Queensland Department of Transport From the office of the Director-General Capital Hill Building, Cm. George and Mary Streets, Brisbane. Telephone: (07) 237 9801 International: + 61 7 237 9801 Facsimile: (07) 237 9648 International: + 61 7 237 9648 Postal Address: G.PO. Box 1549 Brisbane Queensland Australia 4001 The Secretary of Cabinet e 13th Floor Executive Building 100 George Street - BRISBANE 4000 Dear Mr Tait Enclosed are 50 copies of a Cabinet Submission entitled:­ Air Services to Weipa and Horn Island A total of 52 copies of the Submission have been produced. - I have arranged distribution of the submission:- Copy No. Department/Branch Officer 1-50 Cabinet Secretariat S. Tait - 51 and 52 CLLO w. R:di~ For further information please contact me on 2371953. (:ii?:! CABINET LEGISLATION AND LIAISON OFFICER 16 October 1990 DEPARTMENT OF THE PREMIER, ECONOMIC AND TRADE DEVELOPMENT CABINET BRIEFING NOTE Ref: W.Fischer:TM Tel: 44719 Submissio Date: 18.10.90. 1. This submission is a revision of the submission on Air Services to Weipa and Horn Island which Cabinet on 8th October, 1990, agreed be withdrawn. 2 . As on the previous occasion, this submission recommends that the Cairns-Weipa and Cairns-Horn Island air routes be de-regulated from the end of 1990. a 3. The basis for the recommendation is that these routes are the only routes in the State which are still regulated (except for the subsidised far-western routes) and the expected outcome is more frequent and more customer-oriented services. The size of aircraft may however, reduce. Travel times for all of the likely aircraft types are effectively little different, however. 4 . Additional information provided in this submission includes: Comalco strongly oppose the opening up of the Cairns-Weipa route (paras 43-49) and have indicated that, if it loses the exclusive licensing arrangements: (a) it will pursue the matter vigorously at a political level. ) 2 • (b) it fears industrial action if air services, particularly aircraft type fall, below existing level. (c) it is likely to enter into commercial agreements which would limit the effect of deregulation (it controls 50-70% of the Cairns-Weipa business). The granting of exclusive rights over the Cairns-Horn Island route to Torres Air, is supported by Island Co-ordinating Committee which opposes total deregulation and seeks protection for Torres Air. As it is at the developmental phase and serious doubt exists as to its ability to provide a viable and effective service, Torres Air has not been recommended. The Department of Family Services and Aboriginal and Islander Affairs also -- supports the Torres Air proposal. 5. The Department of Transport appears to have thoroughly e-. examined the situation. 6. No objection to proposal. - - Copy No. 20 C O N F I D E N T I A L C A B I N E T M I N U T E Brisbane, 22 October 1990 Decision No. 00784 -Submission No. 00740 TITLE: Air Services to Weipa and Horn Island. - CABINET decided:- !. That, in this instance, it does not favour deregulation. 2. That Cabinet: (a) Reaffirms its desire to obtain the best quality and frequency of services for the region . (b) Believes that 2(a) above can best be achieved by calling for expressions of interest for a total package of services which would specify types of aircraft, frequency of services and proposed timetables of service. That 1 and 2 above be discussed with relevant unions represented in the region to ascertain their views. 4. That 2 and 3 above be expedited by the Honourable the Minister for Transport and Minister Assisting the Premier on Economic and Trade Development. CIRCULATION: Im lementation Res onsibilit Department of Transport an copy to Minister. Departmental Records Department of the Premier, Economic and Trade Development. Treasury Department. Department of Family Services and Aboriginal and Islander Affairs. Perusal and Return All other Ministers and Chief Executives. Certified True Copy Secretar CABINET-IN-CONFIDENCE SECURITY CLASSIFICATION "C" SUBMISSION 740 CABINET SUBMISSION COPY NO. 20 COVERSHEET TITLE Air Services to Weipa and Horn Island. - MINISfER Minister for Transport Minister Assisting the Premier on Economic and Trade Development. - ISSUE Air services between Cairns and Weipa and between Cairns and Horn Island (Thursday Island) are currently operated by Australian Regional Airlines (Queensland) Pty Ltd under the authority of an exclusive State Air License which expires on 31 December 1990. The Cairns - Weipa and Cairns - Horn Island routes are the only Queensland air routes, apart from the subsidised western air routes, which are not subject to open - competition. With the current license expiring at the end of this year, it is an appropriate time to consider whether or not regulation of these routes should continue. - If regulation is to continue, new licensing rights for the routes for 1991 and beyond should be awarded now, to allow sufficient time for any proposed changes to be put in place by 1 January 1991 . Following an assessment by the Department of Transport it is considered that the exclusion from the "open skies" policy of the Cairns - Weipa and Cairns - Horn Island air routes is no longer appropriate. OBJECTIVE OF SUBMISSION To establish policy with regard to the Cairns - Weipa and Cairns - Horn Island air routes for implementation from 1 January 1991. URGENCY An urgent decision is required to allow the aviation industry and affected communities to plan and implement changes by 1 January 1991. This document Is the property of the Government that created It and Is held In trust by the Public Service. u may not be copied or reproduced. For further Information contact the Cabinet Office. t:Ol"R ,NT CAB IN ET-IN-CONFIDENCE CABINET-IN-CONFIDENCE - 2 - CONSULTATION Consultation has taken place with aviation industry representatives, Comalco Aluminium Ltd, Torres Island Co-ordinating Council (ICC), the Department of Family Services and Aboriginal and Islander Affairs and the Member for Cook. - RESULTS OF CONSULTATION All parties generally agreed that if there was more than one operator for either route, there was a risk that the quality of service, particu·larly with regard to - aircraft type, could be downgraded. Individual airline operators indicated that they would be prepared to compete on the routes although they would naturally prefer to have exclusive rights to either or preferably both of the routes. Comalco strongly oppose the opening up of the Cairns - Weipa route. Comalco are of the view the Cairns - Weipa route will be better served in the long run if only one operator is licensed for the route and that the isolated nature of Weipa - demands special consideration to ensure a suitable level of service. The ICC and the Department of Family Services and Aboriginal and Islander Affairs are concerned that deregulation of the Cairns - Horn Island route could - result in a reduction in the quality of air services to the Torres Strait. The Member for Cook has been consulted on this proposal and he is in agreement with the recommendation. · FINANCIAL CONSIDERATIONS There are no financial implications for the Government in this proposal. PUBLIC PRESENTATION A draft media release is attached. This document Is the property of the Government that created It and Is held In trust by the Public Service. It may not be copied or reproduced. For further Information contact the Cabinet ottlce. CABINET-IN-CONFIDENCE CABINET-IN-CONFIDENCE -3- RECOMMENDATION It is recommended that the exemption of the Cairns - Weipa and Cairns - Horn Island air routes from the "open skies" policy be discontinued from 1 January 1991. - ..... /..~?~ .................................... - Pat Comben MLA Actin M"nister for Trans ort 10frc - - This document Is the property of the Government that created It and Is held In trust by the Public Service. ll may not be copied or reproduced. For further Information contact the Cabinet Office. ~0'1'/f,NT CABINET-IN-CONFIDENCE - 4 - SECURITY CLASSIFICATION "C" CABINET SUBMI BODY OF SUBMISSION BACKGROUND 1. Australian Regional Airlines (Qld) Pty Ltd has exclusive State licensing rights to operate regular scheduled air services between Cairns and Weipa - and between Cairns and Horn Island (Thursday Island). 2. This license which was recently transferred from Australian Airlines, expires on 31 December 1990. - 3. The Cairns - Weipa and Cairns - Horn Island routes are the only Queensland air routes, apart from the subsidised western air routes, which are not subject to open competition.