If the monster report of more than 4,000 words, plus assorted tables & attachments, - Merimbula Airport - Infrastructure Upgrades Progress Report – presented to council by the Director Assets & Operations at its ordinary meeting held on November 25th, 2020, did nothing else, it clearly evidenced the colossal negligence of all three levels of government in doggedly pursuing the expansion of Merimbula Airport.
Original council estimates for the project (including provision of a 30% contingency) amounted to $7.8M, which included the provision of fire support infrastructure of $1.0M, runway works $4.4M & the expansion of the existing terminal, including the installation of mandatory baggage handling & security screening infrastructure $2.4M, with the Federal Government contributing $1.2M, the State Government $5.4M & ratepayers $1.2M.
In its latest report, only some four years later, council has confirmed that the cost of the original elements of the project have blown out to an estimated $14.0M, after factoring in $0.9M to cover the estimated capital cost of the security screening infrastructure, included in the original project cost estimates, but not yet provided (a $6.2M or 79% blowout), with ratepayers currently expected to contribute $3.2M of that total.
While council’s incompetence has turned the Merimbula Airport expansion project into a financial “black hole”, even more disturbing was its confirmation that it is currently attempting to negotiate an exemption from the Department of Home Affairs, which would obviate the requirement for security screening (in its latest report, council casually notes that a number of regional airports have obtained such exemptions).
The association understands that there were originally three reasons driving the airport expansion plans namely: the need to extend the runway to cater for larger aircraft, so as to handle significantly higher forecast tourist volumes, the need to comply with federal government requirements for passenger security screening, where larger passenger numbers are involved, & to ensure the airport facilities could cater for its forecast increase in tourist numbers of more than 500,000 annually.
Given that larger passenger aircraft are not required to meet passenger demand (as evidenced by Qantas deploying its 50 seater Q300 aircraft & Rex’s decision to abandon Merimbula as a result) & that council may obtain an exemption from having to provide passenger security screening, it seems that the only remaining justification for the project was the forecast dramatic increase in tourist passenger numbers that council & the State Government have long argued would flow from the completion of the airport extension project.
In other words, had council done its homework properly in the first place, it would have known that there was no medium term need to extend the runway or the terminal when pre Covid2019 annual passenger volumes were only 60,000, including less than 1,000 tourists.
The association contends that, apart from the State Government funding of essential fire protection works, there was never a real imperative for undertaking the expansion works being pursued.
On that basis, all levels of government will have wasted $13.0M on a pointless “build it & they’ll come” fantasy, including $3.2M picked directly from the pockets of ratepayers.
In the meantime, council’s general manager finally found time to respond to the BVSRRA’s inquiry of August 18th, 2020,
wherein it requested council to confirm when the draft updated
Merimbula Airport Master Plan, required as per council resolution 99/16 adopted on June 8th, 2016, will be forthcoming.
Council's mailed response dated November 18th, 2020 confirmed that “
council staff are working on point 3 of the resolution & a further report will be presented to council in due course”.
After the association pressed the matter,
council responded on December 10th, 2020, referring the association to the report tabled at its ordinary meeting held on November 25th, 2020.
The association checked said report in detail & could find only one brief mention of the Merimbula Airport Master Plan, which, unsurprisingly, said nothing about council’s timetable for complying with resolution 99/16.
Arrogance & negligence at their very best.
John Richardson
Secretary/Treasurer
Bega Valley Shire Residents & Ratepayers Association
Tel: 0264945669
Email: secretary@begavalleyshireratepayers.asn.au
Website: http://www.begavalleyshireratepayers.asn.au
