Exclusive: Confidential talks see councillors split as they back Gold Coast Airport buy-up play
A community group warns the council will have a “significant conflict of interest” if it continues with its plans to invest in the Gold Coast Airport. SEE WHY
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A community group warns the council will have a “significant conflict of interest” if it continues with its plans to invest in the Gold Coast Airport.
The Bulletin has revealed councillors at a special closed session discussed a “special strategic investment opportunity” involving an ownership stake in Queensland Airports Limited (QAL).
Gold Coast Lifestyle Association Incorporated has written to Mayor Tom Tate and councillors saying their members fear the planned airport buy-up could impact the 11pm to 6am curfew
But City sources contends council could not be the planning authority, if the deal went ahead, because the Airport operates under the Commonwealth Airports Act.
“Council is in the early stages of considering participating in this sales process and as such it would not be appropriate to comment further,” a City spokesperson said.
John Hicks, the southern Coast group’s president, maintains the operational and profit interests of the Airport would be contrary to those of the wider community.
“We are particularly concerned that the integrity of the Airport curfew — 11.00pm to 6.00am — is protected and upheld for the long-term,” he wrote.
“This is a vital operational condition that provides residents living close to a growing airport surrounded by a growing city a good night’s sleep.”
Mr Hicks said pressure would continue from airlines to reduce or abolish the curfew.
A sustained campaign from residents in 2022 stopped QANTAS seeking a long-term relaxation so air freighters could land outside curfew hours.
“We wish to know that the Council will have the community’s back and will not be conflicted and constrained in its advocacy for the community interest because it is a shareholder beholding to the commercial interests of QAL,” Mr Hicks said.
Conflicts would arise about parking for the future light rail and heavy rail stations, he said.
An Airport Master Plan update proposes within 20 years there will be a combined light rail and heavy rail station on airport land east of its hotel.
“Heavy rail stations demand high volume, free public car parking. However, car parking on airport land is a major revenue stream and is expensive — never free,” Mr Hicks said.
“Expensive carparking will provide a huge disincentive to use of the publicly funded light and heavy rail stations.
“Clearly, the community expects the Council to be unfettered in its ability to advocate
for free public parking at this proposed major new ground transport hub.”
Mr Hicks fears the City’s relations with Tweed Shire Council could deteriorate because its residents were more impacted by noise.
A better alternative “investment” option was paying down Council’s $500 million-plus debt.
“Regrettably, the detailed financial information councillors may have considered in making
their decisions has not been made public,” he said.
“We therefore do no see any evidence to suggest that for QAL the return on invested capital is compelling, compared with other options.
“We do not wish to see ratepayers owning any underperforming commercial assets and call for
full transparency with the community regarding the findings of the investigation into this investment option.”
Many residents have written to the Bulletin saying the City should focus on “rates, roads and rubbish”.
EARLIER
The city’s leading business body has backed a council push to buy the Gold Coast Airport.
Councillors have voted to investigate buying the airport and an ownership stake in Queensland Airports Limited and its three other terminals across the state as part of a new investment strategy.
Gold Coast Central Chamber of Commerce president Laura Younger said there were many positives in pursuing the proposal.
“I think it’s really exciting that the city is looking at different opportunities on this but of course it will depend on the return on investment,” she said.
“The airport is a key asset for the Gold Coast and if the council could have some more engagement with it then that could be a good thing.
“They have got some new flights recently with Bonza and Air Asia and if we can get more international flights, that would be exciting.”
The Bulletin revealed earlier this week that council minutes show the vote to proceed with an investigation into buying the airport was split 7-7 between councillors. Mayor Tom Tate used his casting vote.
Those councillors in favour included the Mayor, Shelley Curtis, Glenn Tozer, Darren Taylor, Hermann Vorster, Daphne McDonald and Gail O’Neill.
Councillors voting against included Deputy Mayor Donna Gates and her northern colleagues Mark Hammel, William Owen-Jones and Peter Young. Bob La Castra, Brooke Patterson and Pauline Young were also opposed.
The deal could be one of the City’s biggest – but not unique to a local government.
Palisade Investment Partners last year finalised a payment for a 99-year lease of the Sunshine Coast Airport to Sunshine Coast Council for $314.4 million.
Queensland Airport boasted 4.4 million passengers in the 2022 financial year, generated almost $94m in revenue and $21.6m in net profit amid a pandemic recovery.
City’s secret investment deal estimated to be worth more than $1b
The council is in the race to buy the Gold Coast airport along with three other regional terminals as part of massive multimillion-dollar secret investment deal.
Councillors at a special meeting last Tuesday in a closed session discussed a “special strategic investment opportunity”.
Council ensured strict confidentiality about its investment plan but industry sources confirmed the City wants to have an ownership stake in Queensland Airports Limited.
“I think they would like to be part of it (ownership). Some of the original shareholders will still be involved taking up more shares,” an industry source said.
“The airport is actually in great shape. It’s back to pre-Covid numbers, domestically. And internationally we are coming back. It’s a good option – whether it’s good for council I don’t know. There’s a lot that has to be done there.”
At least six suitors have been mentioned in recent months after a 40 per cent stake was originally offered – reported to be worth $1 billion – and then changed with much more of QAL believed to be on the table for investors.
Council minutes show the vote to proceed with an investigation into buying the airport was split 7-7 between councillors. Mayor Tom Tate used his casting vote.
Those councillors in favour included the Mayor, Shelley Curtis, Glenn Tozer, Darren Taylor, Hermann Vorster, Daphne McDonald and Gail O’Neill
Councillors voting against included Deputy Mayor Donna Gates and her northern colleagues Mark Hammel, William Owen-Jones and Peter Young. Bob La Castra, Brooke Patterson and Pauling Young were also opposed.
Despite the split in the vote to investigate the deal further, the views of councillors actually for or against buying a stake in the airport are unknown because there was no debate or discussion in open session.
The deal could be one of the City’s biggest – but not unique to a local government.
Palisade Investment Partners last year finalised a payment for a 99-year lease of the Sunshine Coast Airport to Sunshine Coast Council for $314.4 million.
Queensland Airport boasted 4.4 million passengers in the 2022 financial year, generated almost $94m in revenue and $21.6m in net profit amid a pandemic recovery.
The industry source said the buy-up of the airport would occur during unprecedented growth in the tourism market and population with the Coast headed towards the 2032 Olympics.
“There’s huge opportunities for carparking and light rail extending south. I think there’s an interest. The returns are there,” the industry source said.
“If you look at what’s driving the airport — it’s the destination. Everyone just loves the Gold Coast.”
The Bulletin has asked the City what would be the capital investment required to buy a stake in QAL, and whether council’s finances enable that without impacting on paying off debt.
The City was also asked about QAL owning other regional airports - Mount Isa, Longreach and Townsville – and how that situation would be managed.
A City spokesperson in a statement said the council had significantly increased its focus on investment with the recent establishment of Invest Gold Coast.
“The Council considered a range of investment opportunities at the Special Council meeting held on 31 October 2023.
“We are aware of the sales process for Queensland Airports Limited and given the prominence of Gold Coast Airport for our city’s economy, council is in the early stages of considering participating.”
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