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Legislative Assembly for the ACT: 2001 Week 9 Hansard (22 August) . . Page.. 3160 ..

MR HUMPHRIES (continuing):

The chief executive of the Chief Minister's Department wrote to Impulse in early July seeking advice on the overdue regional operations headquarters milestone and on Impulse's intentions concerning all the remaining milestones. He also sought advice on Impulse's relationship with Qantas, particularly in relation to meeting the milestones that Impulse may no longer be able to meet.

We understand that Qantas has not taken over Impulse but, rather, has entered into a contractual relationship. Impulse is still an independent organisation and is therefore legally responsible for the regional aviation line agreement with the ACT. The information that we are seeking from Impulse will allow us to assume whether the relationship between Impulse and Qantas is such that Qantas has assumed any of Impulse's obligations.

My colleague the minister for business wrote to the chief financial officer of Qantas on 3 July and advised him that the ACT is seeking early resolution to this matter. Mr Gregg, the chief financial officer, in turn confirmed that Qantas is committed to working with Impulse and the territory to find a satisfactory resolution to the milestones.

A meeting was held with the Qantas general manager of regional operations on 9 August to discuss potential regional aviation routes based on Canberra. A follow-up discussion is planned for 27 August, which is next week, when Qantas anticipate the results of investigations will be available. The minister met with Narendra Kumar, executive general manager of Qantas subsidiary businesses, and Mr John Kerr, general manager of government regulatory fares, on 3 and 10 August to discuss the milestones in the agreement and their progress on the Qantas/Impulse arrangement.

Mr McGowan of Impulse Airlines attended the meeting on 10 August. At that meeting Qantas demonstrated a commitment to work through and resolve the issues. On 17 August, Mr McGowan of Impulse wrote to the ACT government, indicating that negotiations were still ongoing with Canberra Airport and the builder and that it was the intention of Impulse to finish the hangar infrastructure already commenced at Canberra Airport and that the facility will also house a working operational headquarters, which is another of the milestones indicated.

Our agreement with Impulse has clear default provisions, and we are actively and strongly pursuing these with Impulse. We are seeking to work with Impulse and with Qantas to achieve as many of the outstanding milestones as possible so that we can maximise the future employment and economic benefits for the territory.

What that indicates is that, on the part of the ACT government, we will insist on one or two things occurring: either that the milestones be met or that the money that those milestones are associated with be returned to the ACT government. As I have indicated, there is at least one milestone overdue at this point. The government is prepared to allow more time for the milestone concerned to be met if it is the intention of Impulse/Qantas to achieve that or other milestones, but it must be on the basis that the territory has a reasonable assurance that these things will occur. If it appears that the territory will not receive the benefits promised in the milestones, the territory will immediately insist on the refund of the money associated with those milestones.

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