Coronavirus: Virgin plan ‘a dangerous stunt’, says Peter Dutton

Two senior cabinet ministers have ridiculed the Queensland government’s plan to buy embattled airline Virgin Australia.

Virgin Australia aircraft at Brisbane airport. Picture: AFP

Two senior cabinet ministers have ridiculed the Queensland government’s plan to buy embattled airline Virgin Australia, declaring the proposal “a populist brain fart” and a crazy idea amid the global ­aviation shutdown sparked by the coronavirus pandemic.

Home Affairs Minister Peter Dutton told 2GB on Thursday the Palaszczuk government’s decision to make a bid for the airline was either “laughable”, “dangerous” or a pre-election stunt designed to make state Labor look good.

Agriculture Minister David Littleproud suggested the move was “nothing more than a populist brain fart” and a stunt to court the favour of voters in the lead-up to Queensland’s state election in ­October.

“This is nothing more than a populist brain-fart,” he said on Thursday. “Unfortunately in Queensland, that sometimes becomes policy. This mob can’t even run their own government, they’ve got no hope in running an airline … if they want to go and spend Queenslanders’ money on this, God help us.”

Scott Morrison was more restrained in his comments, doubling down on the government’s decision to refuse Virgin Australia's $1.4bn coronavirus bailout request before the foreign-owned airline went into administration.

The Prime Minister said “good judgment” meant there were now many private sector bids coming through.

In question time in federal parliament on Thursday, opposition transport spokeswoman Catherine King asked Deputy Prime Minister Michael McCormack why the government provided $54m to Rex Airlines, which employs about 1000 workers, but no equivalent support for Virgin, which employs almost 10,000 workers.

Mr McCormack responded: "We want to see two commercially viable airlines coming out of the back of COVID-19.’’

Earlier, Mr McCormack had told ABC News that the airline’s sale should be a “market-led ­solution”.

Asked whether he thought it acceptable for the Palaszczuk government to be part of that solution, Mr McCormack said he thought the Queensland government should focus on running the state and its economy.

“I think this should be left to companies. It should be left to potential bidders and investors who aren’t necessarily government.”

Mr Dutton’s comments drew the ire of his Labor counterpart, Kristina Keneally, who said she understood why the Queensland government was considering the purchase and told Mr Dutton to focus on his day job.

“I can understand why the Queensland government is interested in seeing Virgin with its 16,000 employees, and the ser­vices it provides regional communities,” Senator Keneally said.

“I have to say though I’m quite puzzled by Peter Dutton’s ongoing and somewhat obsessive commentary about what is happening in the Queensland government.”

Labor MP Anne Aly said Mr Dutton had “overreached” with his comments and it was up to the Queensland government whether they decided to bail out the airline.

Liberal MP Trent Zimmerman told ABC News he was not convinced a state government was the right entity to be managing an international airline.

He said it was his opinion that governments should always be the “last resort” in such circumstances rather than the first.