Press Conference - Hobart Airport

NORRIS CARTER: Good morning. I'm Norris Carter, CEO of Hobart Airport. I'd like to welcome Minister Catherine King and Minister Julie Collins from the Commonwealth Government, and Simon Abrahams from Downer. Today, we're marking the start of the first stage of our runway upgrade project. This is one of Tasmania's most complex and important infrastructure projects and, when it's done, it will be a gateway to the world.

Through the course of this project we're going to take 30,000 tonnes of old asphalt off our airfield and lay down 100,000 new tonnes of asphalt, that's equivalent to about two Tasman bridges. The runway will be done in three stages. First stage is the northern end. The middle stage will be the centre part of the runway, which will be done as night works. Third stage is the southern end. 

So, what we've done now is shorten the runway at the northern end by 829 metres, that's enabled us the space to be able to do the first stage. During this time there's still plenty of runway left for the safe takeoffs and landings, so people will see operations continue as normal at the airport. 

I'd now like to hand over to Minister King. I want to say thank you, Minister, for the $60 million contribution to this $130 million project. Without that, that wouldn't be possible.

CATHERINE KING: Thanks, Norris. Thank you. Catherine King, Federal Minister for Infrastructure. And this is a really great milestone in the life of Hobart Airport, but also really an economic development project for the whole of the state. This project is incredibly important to grow freight, to grow that international passenger movement into Hobart and of, course, into the rest of the state as well. 

What we're seeing here is a $60 million investment from the Albanese Labor Government, alongside $70 million from the airport itself, to build a $130 million project that will really be a game changer for the way in which passenger movements occur, but in particular the way in which freight is part of this project. I haven't had a chance to be out here since we actually made the announcement back in the 2022 election campaign, and I want to really commend Hobart Airport for the work that they've done in actually getting this project delivered - major construction on stage one now underway. 

We know that the expected passenger growth through this airport well out into 2040s, over 5.5 million passengers. That's a huge increase, and being able to actually bring those bigger, larger code-E international planes into the airport really will make a significant difference. But it's more importantly than bringing passengers and tourists in, really, it's about freight - that beautiful produce that only Tasmania produces here. Your cherries, your berries, your apples, your beautiful spirits as well. An incredible opportunity to take those particularly to the world. 

I'm going to hand over to Minister Collins, my colleague, who also is a local member here who's been here a couple of times already. But I think we're both incredibly impressed at the way in which Hobart Airport is managing this project and getting it done - delivering on the election commitment we made back in 2022. Thanks, Julie.

JULIE COLLINS: Thanks, Catherine, and thank you, Norris. It's terrific to be back at Hobart Airport to see that major construction on the runway is now underway. As Minister King has highlighted, we are investing $60 million. I was pleased, as part of the Tasmanian team, to be able to secure this election commitment for Tasmania, because, of course, it's so important for Tasmania as it has been outlined. 

This is important not just to give us international flights, but it's important for our primary producers - our cherry and berry growers - to be able to get produce off the island fast and fresh so that they can get a premium product. As Minister for Agriculture I'm so proud of our Tasmanian produce, and being able to get it to the world faster and in better condition means only good things for Tasmanian growers. So this is about international passengers coming to Tasmania, but it's also about getting our fine produce to international markets faster and fresher for Tasmanian growers to be able to get that premium price. 

So it's terrific to see the project underway today and to be able to see the terrific work that has been going on. It's also great to hear about the logistics of this and how it means no disruptions to flights for Tasmanians. As Minister King has highlighted, that this is not just important for Hobartians, but it's important for the entire island of Tasmania. Tasmanians will benefit greatly from this Federal Government investment together with Hobart Airports. You will see that in terms of the returns to Tasmania over the years. This is a very important project for Tasmania and I'm proud to be part of the government that's delivering on it.

CATHERINE KING: Happy to take questions. Who do you want to start with? Do you want questions of Norris on the project itself? 

JOURNALIST: Just a few questions for Norris. How long are you expecting these works to take until they’re complete? 

NORRIS CARTER: So, this will take until the middle of next year. So, by July next year the runway upgrade will be finished. 

JOURNALIST: How do you manage it so you can work on the middle section, which obviously planes need to take off. And if you said the work is done at night I imagine there's some effect on the condition of the runway through the day. 

NORRIS CARTER: So, what they actually do is about an 80 metre strip each night. So they come in, mobilise at 10:00 when we hand over the runway to them. They mill off the top of the old asphalt, lay new asphalt paint lines on it, put a little ramp in to even up the levels and it's ready to go at 6:00 the next morning. 

JOURNALIST: How long is this [indistinct] something that the tourism industry has been critical about for quite a while now? 

NORRIS CARTER: We've been really working on this in earnest since we got the- since the 2022 election campaign when we attracted the funding. But certainly there have been discussions about improving the runway for longer than that. 

JOURNALIST: Is it just a strengthening so it can take larger planes? Is that it? 

NORRIS CARTER: Yeah. This is strengthening, this a little bit of widening of taxiways. But basically, it's to strengthen the runway and the taxiways to be able to take planes weighing up to 300 tonnes, when currently we only get them up to about 90 tonnes. 

JOURNALIST: Is the Antarctic Division able to use the runway throughout this period? We've heard that they might have some disruption to their flights. 

NORRIS CARTER: Yeah, they can't use it ahead of Christmas, they'll be able to use it after January. They've accepted that. They've got some alternative arrangements in place, so using Launceston and Avalon Airports. But as they said, it's a little bit of short term gain for long term- short term pain for long term gain.

NORRIS CARTER: I might just check with…

CATHERINE KING: Yes, of course. 

JOURNALIST: Hey, Ellie, do you have any questions for Norris?

JOURNALIST: No. I [indistinct] to Norris.

CATHERINE KING: Lovely. All right. 

JOURNALIST: Do you guys have any more on the runway…

CATHERINE KING: Anything on the runway?

JOURNALIST: ….for Catherine? Otherwise, I'm happy to go to the fine stuff.

CATHERINE KING: Good point. Yeah, [indistinct] That’s okay. No, sure.

JOURNALIST: You've accepted the precinct plan for Macquarie Point today, as it's also been handed to the Planning Commission.

CATHERINE KING: Correct.

JOURNALIST: What's in that plan that has led you to accept it? 

CATHERINE KING: So, one of the- part of the arrangements the Commonwealth has for Mac Point is that we really wanted to see the development of a multifunctional precinct, which includes the upgrades to Wharf 6, includes the availability of housing and, obviously, the stadium as part of that. But also work to ensure that First Nations communities and the long history that First Nations communities has at that precinct is recognised. 

The Commonwealth is now, as part of the agreement with the Tasmanian Government, accepted the precinct plan, and I understand the Tasmanian Government is now taking stage one or part of stage one, the stadium, through its planning processes. 

JOURNALIST: I believe you've asked for a revision on the first plan, so what's different between version one, Catherine? 

CATHERINE KING: Really what we’re wanting to see and what we're seeing internationally is that the really you can't just build stadiums, you've actually got to build and change the way in which a precinct operates, and you need to be able to bring commercial activity in, liveability in, transport and making sure you've got those transport links. So really, what we were interested in is making sure that this is a plan for the entire precinct, not just for the stadium as [indistinct]… itself.

JOURNALIST: What else needs to happen for the Federal Government to hand over the $240 million? Are you confident that negotiations with the AAD are on the right track?

CATHERINE KING: Well, in terms of the next stages, obviously we want to see some movement on Wharf 6. That's important obviously to the Commonwealth, but I think also important to the Tasmanian Government as well, and that will be part of the ongoing negotiations. But there are a series of milestones that are part of the agreement. This was one of the first ones, and we'll start to see as it goes through the stadium, stage one goes through the planning process. Movement in terms of funds is according to those milestones.

JOURNALIST: Is there a timeline you'd expect?

CATHERINE KING: No, that's- well, obviously that’s a matter for the Tasmanian Government and their planning process as well.

JOURNALIST: Have you had an update on AAD? The Premier said recently that he’s confident that there’ll be a resolution soon. Have you heard similar things?

CATHERINE KING: That’s really Minister Plibersek's portfolio area so I’ll leave her to comment on that.

JOURNALIST: On the GST exemption, the State Treasurer, Michael Ferguson, said recently he's determined to get that GST exemption on the $240 million. As far as you're concerned, is it case closed or is there still the possibility?

CATHERINE KING: Well, again, that's a matter for the Treasurer. But I would remind every state- you know, the state particularly that there is of course a no worse off guarantee in the GST movements. And so, we're very confident that the way in which the Commonwealth is treating this project is the same way in which any other projects of this nature are treated in relation to the GST. But again, that's a [indistinct] situation.

JOURNALIST: AAMI has released its snapshot data for the most dangerous roads over 10 years. Did that surprise you, that data? And I guess what's being done to fix these roads?

CATHERINE KING: Well, road safety is really everybody's business. So making sure- part of my job and part of the state government's job is to make sure - and local government's job - is that we have the safest roads we possibly can. So from the Commonwealth's perspective, we're investing more in road safety than ever before. We have doubled the amount of money we give to every single local government in the country to improve local roads, those roads that people are taking their kids to and from school every day, dropping off to childcare, going to community sport. So to local government - doubling that. We've also increased the amount of money the Commonwealth puts into black spot road funding, making sure, again, there is the availability where there are really dangerous intersections that state and local government can apply to make sure we get treatment on those dangerous intersections, as well as then continuing to work with state and territory governments on their priority projects to make sure we've got that investment coming in.

But of course, it’s roads in and of itself that’s not going to fix this problem, we need to make sure that we've got safe systems in place as well as safe driver behaviour. And I think the report by the AAMI today again highlights all of those things, that those three components are very much a part of what we want to do in terms of improving road safety.

JOURNALIST: So Bruce Highway in Brisbane, is that one of those roads that you've talked about?

CATHERINE KING: Certainly, in terms of the Bruce Highway, the Commonwealth is investing over $10 billion in the Bruce Highway, including in the three corridors, north, central, and south, as well as- and part of that $10 billion is over $1.3 billion specifically for road safety improvements. We'll continue to look at what other projects come forward in terms of the Bruce Highway, but that $10 billion investment, those projects are either in planning, under construction, or are making their way through the process to actually deliver better safety for the Bruce Highway.

JOURNALIST: Just on the Bruce Highway, is the Federal Government standing by the 50-50 funding split for the upgrades and why?

CATHERINE KING: Again, let's be really clear about what this actually looks like. So the Commonwealth's contribution to infrastructure stays the same. So there's no drop in money. The amount of money available for roads in Queensland, in Tasmania, stays the same. What we are now asking, and we've been doing this for a year now, is on those projects where we're co-investing that it is an equally shared risk and an equally shared funding. We think that is the best way to go forward to actually get more money, more money. And anyone arguing for a change in the 80-20 split to- from a 50-50 split to an 80-20 split is actually arguing for less investment in our roads.

JOURNALIST: Also, the Property Council is calling on the Victorian Government to do a strategic slowdown of the Suburban Rail Loop. Is your government still committed to chipping in $2 billion? And does that project stack up?

CATHERINE KING: Again, in terms of the Suburban Rail Loop, we obviously in the 2022 election campaign have invested $2.2 billion in early works on Suburban Rail East. We're awaiting the project valuation report from the State Government and will make those investment decisions from there.

JOURNALIST: One more on the stadium as well, sorry. A $240 million commitment at the moment from the Federal Government. Cost documents show that the stadium cost has blown out by $60 million at this stage, and obviously, there's still a lot of scepticism about that price tag. Would the Federal Government be open to contributing any more?

CATHERINE KING: Well, the Federal Government has capped its commitment at $240 million. Obviously, the state government comes to us when there are cost blow-outs on a range of projects, and we'll consider that obviously as part of budget processes. But the $240 million is what's on the table. 

UNIDENTIFIED SPEAKER: Any questions on the phone? 

UNIDENTIFIED SPEAKER: Any from you, Elliot?

JOURNALIST: Sorry, are you throwing to me?

CATHERINE KING: Yes, we are.

JOURNALIST: Fantastic. Great. So sorry I haven't been able to hear the questions very well. Obviously, we've heard this morning that the cost of the stadium is now looking at $775 million. What do you think the chances are that this project will come in on time and on budget? Or will we be relying on the private sector to prop this project up?

CATHERINE KING: Well, the delivery of the stadium is a matter for the Tasmanian Government. The Commonwealth's contribution of $240 million for the Mac Point Precinct as a whole is there and available, and obviously, I’m accepting the precinct plan. We're now seeing progress on that precinct.

UNIDENTIFIED SPEAKER: Going to call last questions.

JOURNALIST: And as Infrastructure Minister, can you name a single stadium across the country that's been built on time and on budget?

CATHERINE KING: Well, again, the delivery, we are the co-investment partners with state governments and sometimes with sporting clubs themselves. We are co-investors with that. The delivery of these projects are a matter for state governments and other proponents.

UNIDENTIFIED SPEAKER: Okay. Last questions.

JOURNALIST: Can I just ask one more? And this might be better to Julie as well. The State Government here is saying that the Northern Heart Centre in Launceston, which will be $120 million investment – it was one of their election promises – could potentially or will need Federal Government contribution to go ahead. Was this something that the Federal Government was aware of? And I guess what do you make of the State Government saying that now but telling nobody, it seems, during the election campaign?

JULIE COLLINS: Look, I think every Tasmanian knows the Tasmanian State Government have mismanaged the budget. They made a whole heap of election commitments that they can't fund, and now, they're saying that the Commonwealth is on the hook for half this. My understanding and the advice I have is that they have not approached the Commonwealth about this project.

JOURNALIST: Would you like to see a go ahead fully funded by the state?

JULIE COLLINS: Well, what I think the State Government needs to do is to be upfront and honest with the Tasmanian people about the fact that every Tasmanian- there's enough debt here for every Tasmanian – $15,000 for every man, woman and child and baby in Tasmania. That is what the Tasmanian State Government has done with the mismanagement of the state's finances. It's up to the Tasmanian Government to explain how they fund their election commitments.

JOURNALIST: The AMA says it's their number one project for the north of the state. If the State Government's saying it needs Federal Government funding to go ahead, would the feds be open to contributing to make sure it does?

JULIE COLLINS: We've always said we want to work with the Tasmanian Government in the best interests of Tasmanians, and that's what we've done. You've just heard Minister King outline how we've done it in relation to other projects- we've done in relation to every project, and that would include the project in Launceston. The State Government does need to be upfront with the Tasmanian people about its election commitments.

Thanks, guys.

CATHERINE KING: Thank you.