Council supports Kalgoorlie-to-Melbourne flights with community-focused conditions

Direct flights from Kalgoorlie-Boulder to Melbourne are one step closer to a reality after council unanimously endorsed a business case to financially support a renewal of the service, with a suite of conditions to ensure the flights are not just used for FIFO and are affordable for residents. Councillors were greeted by a packed public gallery at Monday night’s ordinary council meeting, with more than 30 residents turning out to show their support for the reintroduction of the flights, as put forward in a confidential business case by the Kalgoorlie-Boulder Chamber of Commerce and Industry. The KBCCI had requested the City of Kalgoorlie-Boulder offer a 100 per cent subsidy of the amount being requested by a preferred airline for the first 12 months of the flight being brought back but the officer recommendation to the council was to approve 50 per cent of that, with the rest being sought by industry which would benefit from the route. Instead, deputy mayor Terrence Winner put forward an alternative motion which would have the city support up to 90 per cent of the requested subsidy, with the KBCCI chucking in 10 per cent, and a condition the chamber still seeks financial support from industry. The unanimously supported motion authorises the city chief executive to negotiate a financial support arrangement with the preferred airline for discounting airport fees for 12 months, pending the council’s “financial governance requirements and outstanding commercial considerations being resolved”. It also included conditions requiring a seat reservation allocation for local community access to be held for public purchase until at least two weeks before each flight, with the amount of seats dependent on the city’s financial contribution, and for the city chief to explore mechanisms to support affordability and negotiate an indicative fare cap or pricing guideline to ensure the route remains accessible to the community. Any extension to the 12-month subsidy period would need a separate council resolution and a report to the council, in consultation with the KBCCI, will be required within 12 months of the flights commencing outlining passenger demand, economic outcomes to the region and financial implications for the city. Speaking during public access time before Cr Winner’s alternative motion was raised, KBCCI chief Simone de Been said the flights would have a positive impact on local liveability, business, tourism, medical travel and connection with family and friends. “Will FIFO use the flights? Yes, but our residents should not be penalised because we have FIFO in our town,” she said. “These flights from Kalgoorlie to Melbourne are a priority for the whole community.” She also highlighted how the midyear budget review, being discussed at the same council meeting, showed a $6.5 million increase in fees and charges forecast to the end of the financial year due to increased passenger numbers at the airport, and the city had a promotions reserve fund with more than $1.5m which had previously been earmarked for attracting new airlines and routes to the city. If the council did not support the flights coming back, Ms de Been said the city could miss out on more than $500,000 income, even taking into account the subsidy being asked for. There was plenty of discussion from councillors around the table before the vote was taken and clarification was sought by Cr Carla Viskovich that the council was not endorsing a figure for the subsidy but endorsing the chief to negotiate that figure pending a number of conditions being met. Cr Winner said the intention of his motion was not to block the initiative but to strengthen it so that it could deliver the best possible benefit to community, while also managing the city’s financial exposure responsibly and meeting concerns raised from councillors around the table. “This alternative resolution strongly supports the return on east coast flights, but it does so in a way that protects ratepayers, ensures community benefit and strengthens council oversight of the initiative. Cr Wayne Johnson was next to speak in support of the motion, stating it was fantastic to see the city supporting the return of the flights, and that it would include two flights a week instead of the one that was previously on offer before COVID. Cr Ric Halse said the “punters” around town clearly wanted the flights to return and he was not going to tell them to “suck eggs”. “I think most people know my position on FIFO, but what has been presented tonight is a well thought through strategy and a need that’s been driven by the community,” he said. “So it doesn’t matter whether I like it or not, what I’m supporting here isn’t the plane in the sky, I’m supporting the people wanting something.” Cr Viskovich then raised concerns that the motion made the negotiation with parties “a little more complicated” and she was unsure of the repercussion if requirements being asked were not met. Liveability was the main reason Cr Kyran O’Donell spoke in support of the motion, although he flagged concerns Melbourne may benefit more from the local community spending money there, than Victorians spending money here. He also noted he was glad the city’s subsidy was only for one year. Mayor Glenn Wilson said the flights were commercially viable when they were last running before COVID and he was annoyed the council was now being asked to underwrite service that should be a commercial operation. “I do have some very big concerns about the risk, and as mayor. I can’t not put that out there,” he said. “However, I’m supporting the motion . . . because it’s something that our community want. “There are times, collective members, when you are around this table, that you need to understand that sometimes your own personal views do not correlate with what happens in the community. That is one instance for me, but I’m very supportive of having the service back.” During his right of reply speech, Cr Winner acknowledged and addressed the concerns of councillors, particularly on the fly-in, fly-out matter, stating he expected the resource sector would “come to the table”. “If they want to use it, they need to contribute, it’s that simple,” he said. Councillors Deborah Botica and Kirsty Dellar were unable to debate or vote on the motion as they had declared financial interests.