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Legislative Assembly for the ACT: 2000 Week 4 Hansard (30 March) . . Page.. 1177 ..

MR STANHOPE (continuing):

should the Government be involved in ventures that carry an inherent high level of risk? On what basis does the Government seek to determine the opportunity cost of any financial contribution to a venture such as this one?

Having said all that, this proposal is of the type that, as the Chief Minister said, most members of this place would agree we want. It brings a new industry to the Territory. It brings skills and capital to the Territory and it complements and enhances industries already here. It could be the catalyst for further growth in other sectors of the Territory's economy. As has been indicated through the statement of intent, the Government has decided to contribute up to $10m to the project by way of an $8m capital injection loan and a $2m payroll holiday or exemption over five years. That is, effectively, a $10m grant to Impulse.

Access Economics, as the Chief Minister indicates, is positive about the proposal and Access Economics concludes that a $10m investment by the ACT Government is worth while. But there are risks. The first is, with great respect to Impulse, whether Impulse will deliver on the deal. Some questions have to be asked. Several come from the discrepancies between the various reports and media releases and the statement of intent signed by the parties. The statement of intent will form the basis of a contract between the parties and these discrepancies are therefore important.

What are the discrepancies? Access Economics, for instance, estimated that 360 direct jobs would be generated by the proposal. The Chief Minister, in her usual style, rounded that up to nearly 400 jobs. The statement of intent, however, has a total of 252 jobs.

Ms Carnell: It has not got the regional airline jobs. You know that.

MR STANHOPE: The Chief Minister interjects that some jobs have not been counted. That is my point and that is the only point I am making. In relation to a single proposal, we have three projections about job increases, and these things are important. Access Economics says 360 direct jobs, the Chief Minister says about 400 jobs and the statement of intent says a total of 252 jobs. The ACIL Consulting report lists 26 pilot positions and 15 to 45 terminal staff positions as coming to Canberra, but there is no mention of those in the statement of intent. The commitment to training positions and an aviation centre of excellence in the ACIL report become support for the development of such a centre. There is a marked difference between commitment and mere support.

Making Canberra Airport a regular transport hub is the Government's main reason for sponsoring and supporting the proposal. The statement of intent commits Impulse to trial four routes for a minimum of 10 weeks. As I said, these differences are significant and they do need to be explained and we do need some explanation of what the final agreement between the parties will look like. Mr McGowan has assured me that the commitments made will be reflected in the final contract and in Impulse's performance. Similar commitments were made in Impulse's media release at 22 March. I have met Mr McGowan twice and he strikes me as both honest and able and I have no doubt that it is his intention to keep his commitments to us and to Newcastle. Even so, we are being asked to take some things on faith.

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