Qantas being considered for Federal Goverment help

THE Federal Government said no to Holden and SPC Ardmona, but it’s “carefully considering” calls for assistance from Qantas CEO Alan Joyce. WATCH QT LIVE 2PM

FINANCE Minister Mathias Cormann says the government is carefully considering calls for assistance from Qantas, saying it is conscious of the restrictions placed on the airline by the Sale Act.

The airline’s chief executive, Alan Joyce, had said it was not looking for a government handout, admitting there was “little political or community appetite’’ for changing the Qantas Sale Act restricting foreign ownership.

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But speaking at a tourism function in Canberra last night he said the Federal Government could still come to the national carrier’s aid, hinting that the airline continued to seek a debt guarantee.

Coming so soon after the government refused assistance to Holden and SPC Ardmona, questions have been raised as to whether the Coalition should help the national carrier.

Senator Cormann said businesses needed to “put their own house in order’’.

“Having said that, we’re very conscious of the particular challenge that Qantas faces in the context of restrictions imposed on them in the Qantas Sale Act,’’ he told ABC Radio.

Carefully considering ... Finance Minister Senator Mathias Cormann says he’s conscious of the restrictions placed on Qantas by the Sale Act.

“We are having conversations with them, and we’re carefully considering the propositions they’ve put to us.’’

Liberal backbencher Dan Tehan described Mr Joyce’s speech as “sobering’’.

“I think most people who were in the room readily accepted that they are facing some serious challenges, and that the airline is going to have to take some serious steps to ensure that it is going to be profitable into the future,’’ he told ABC Radio.

However, the airline needed to make a public case for government intervention, he said.

“They need to publicly make the case as to how the Qantas Sale Act is holding them back, that it is placing a regulatory straight jacket on them,’’ Mr Tehan said.

Mr Joyce said Qantas had encouraged the government to address the uneven playing field created by the Qantas Sale Act, which limits any foreign ownership of the airline to 49 per cent.

“The Act limits our financial options. It adds cost to our business, and it influences our actions as a publicly-listed company,’’ he said in his speech.

Iconic brand ... Qantas is facing some serious challenges.

“Over the long term, repealing it is essential to remove the distortions in our aviation system.’’

Labor’s transport spokesman Anthony Albanese accused the government of sitting on its hands when it came to helping Qantas, despite the carrier having sought assistance for months.

“The government is sitting back doing nothing just like they sat back and did nothing about SPC Ardmona or Toyota or Holden,’’ he told ABC radio.

Mr Albanese said the Opposition would work constructively with the government on any proposal, but believed it would be against the national interest to change the Qantas Sale Act.

“They need to act,” he said of the government.

“We’re talking about 32,000 jobs here directly and we’re talking about an iconic Australian company that plays a critical role, not just in our national economy but internationally as well.”