Description: Maranoa Logo Process

Late Items

Business Paper

 

General Meeting

 

Wednesday 10 April 2013

 

Roma Administration Centre

 

NOTICE OF MEETING

 

Date: 9 April 2013

 

 

Mayor:                                                    Councillor R S Loughnan

 

Deputy Mayor:                                        Councillor W S Wason

Councillors:                                             Councillor J L Chambers

                                                              Councillor R J Denton

                                                              Councillor P J Flynn

                                                              Councillor W M Newman

                                                              Councillor C J O’Neil

                                                              Councillor M L Price

                                                              Councillor D J Schefe

 

Chief Executive Officer:                            Ms Julie Reitano

 

Senior Management:                                Mr Tony Klein (Director Community & Commercial Services)

                                                              Mr Michael Parker (Acting Director Infrastructure Services)

                                                              Mr Rob Hayward (Director Development, Facilities & Environmental Services)

 

Officers:                                                  Ms Jane Frith (Coordinator Corporate Communications)

 

Please find attached agenda for the General Meeting to be held at the Roma Administration Centre on April 10, 2013 at 9.00am.

Julie Reitano

Chief Executive Officer

 


Maranoa Regional Council

    

General Meeting -  10 April 2013

TABLE OF CONTENTS

Item       Subject

No

  

L            Late Items

L.1        Government Contracted Long Distance Passenger Transport Services in Regional Queensland ......................................................................................................... 2

Prepared by:      Ben Jones, Manager - Airports (Roma, Injune & Surat

Attachment 1:     Roma Airport Passenger Forecast......................................... 9

Attachment 2:     Ministers Request for Elected Member feedback............... 10

L.2        Provision of a Bus Shelter adjacent to the BP Service Station Arthur Street, Roma                                                                                                                                16

Prepared by:      Cindy  Irwin , Specialist - Infrastructure Program Funding  

L            Confidential Items

LC.1     Compulsory Acquisition of Lot 128 on DL500 Mitchell Refuse Site

              Classification:      Closed Access

Local Government  Regulation 2012 Section 275(e) contracts proposed to be made by it.  

  


Maranoa Regional Council

    

General Meeting -  10 April 2013

Officer Report

Meeting: General  10 April 2013

Date: 5 April 2013

Item Number: L.1

File Number: D13/12693

 

Subject Heading:                     Government Contracted Long Distance Passenger Transport Services in Regional Queensland

Classification:                                  Open Access  

Name of Applicant:                         N/A

Location:                                           Roma

Author & Officer’s Title:                 Ben Jones, Manager - Airports (Roma, Injune & Surat

 

Executive Summary: 

Currently the Department of Transport and Main Roads is undertaking a review of long distance passenger services in regional Queensland. The review will incorporate engagement with key stakeholders including local government authorities and incumbent transport operators, who currently provide government-supported services. This review will include the Roma to Brisbane air services route that is currently regulated and will result in either the deregulation of the route or the regulated status continuing.

 

 

Officer’s Recommendation: 

That Council contact the Department of Transport and Main Roads as a key stakeholder and support the deregulation of the Roma Brisbane air service route.

 

 

Body of Report:

The Department of Transport and Main Roads (DTMR) is undertaking a review of long distance passenger services in regional Queensland.

The review aims to:

1    Determine the appropriate role of the state government in facilitating the delivery of services, either through regulation or subsidies.

2    Provide recommendations to ensure value for money outcomes for the Queensland Government and the public without restricting commercial, long distance passenger transport markets (for example, deregulation of certain air routes where the market can sustain competition could be considered and may potentially create lower airfares and increase service frequency).

3    Ensure regional communities continue to receive a reasonable level of access to essential services in major centres.

 

 

The report references three types of travel:

(a) Air

(b) Bus

(c)  Train

 

 

Air

 

The original purpose of regulating the Roma Brisbane air service route was to ensure the region has adequate access to air travel, historically the Roma Brisbane route did not have a demand that was large enough to be financially viable for aircraft operators.

 

The current Regular Public Transport (RPT) operator Qantas Link is contracted to operate 16 flights per week on the Roma Brisbane route;  currently Qantas Link is far exceeding their contract consistently operating 50 flights per week. In addition to the RPT flights Qantas Link and Skytrans are operating regular closed charter flights, meaning the general traveling public is unable to access these services. If the Roma Brisbane route was deregulated Skytrans would have the option to sell fares to the public for flights that they are currently operating.

 

In NSW the figure of 50,000 passengers traveling annually on a route that is regulated triggers a review of the regulated status. Generally the benefits in regulating that route no longer exist when that volume is reached and the benefits of competition become higher in priority. DTMR do not have a nominal figure that triggers a review.

 

It is generally accepted by the aviation industry that an air route that sustains over 100,000 passengers traveling annually can support two or more aircraft operators. In the majority of cases when a second aircraft operator commences the result is a reduction in fares causing an increase in passenger numbers.

 

Given the current passenger forecasts the Roma Brisbane route will be able to sustain multiple aircraft operators now and into the future with the potential result being a reduction in the fare price. Any additional operators wishing to establish RPT flights would need to be done through a process of negotiation with Council -  additional facilities are needed and appropriate lease arrangements would mean Council would retain a level of control.

 

The addition of another aircraft operator has the benefit of access to an additional network of airports and the possibility of opening up new services such as a Brisbane – Roma – Longreach – Cairns route or potentially a Brisbane – Roma – Longreach – Mount Isa – Darwin route. Routes such the ones mentioned have many benefits including additional access to international airports increasing tourism to the area and also opening business opportunities that may not exist currently.  

 

This was a point also mentioned by Cr Schefe in the initial investigation into the matter:

 

         I believe that we need to look at Roma airport being a link in a chain instead of being a service that dead ends in charleville.

 

          If there was a service from Brisbane to Roma to Longreach to Cairns and return, this would open up the interior of the state to new business opportunities and tourism.

 

          I have spoken with a manager from Anglicare at Roma who said they would use a service from Roma to Longreach as they service out to Longreach and currently drive because it's inconvenient to fly the way you have to go now. I would suggest that government investigate business opportunities and cost savings that linked flights will open up.

 

          With the growing Asian tourist market and direct flights into cairns increasing there is a great opportunity here to redirect some of this traffic to the inland tourist communities. Longreach and Roma both have large inland airports and have strong tourism roots. I have heard Longreach is keen to increase the number of tourists passing through the "stock mans hall of fame". Currently international tourists seem to fly into cairns then move south down the coast and end up in Brisbane Sydney or Melbourne. International tourists visiting for 2 weeks holiday don't want to spend most of that time driving out west but flying for an hour and overnighting in a western town for a true outback experience is appealing. This will then offer opportunities for bus tours from Longreach and Roma to other western tourist hot spots.

 

       For example a tourist flys into Cairns, visits the reef, then flys to Longreach, visits the Hall of Fame then flys to Roma or takes the option of a bus tour departing Longreach and following the dinasour trail back to Roma, visits the Big Rig Museum or Carnavon Gorge thens flys back to Brisbane.

 

       This works well with my proposal to change our airport into a transport hub, with aircraft , undercover bus depot, taxi base, and all the hire car company's based here. And if the state government is so inclined we can add high speed passenger trains as well (the train might be a wish ). This would be a good model for Longreach as well.

 

The other linked flight path I would like investigated is Brisbane, to Roma, to Longreach, to Mount Isa, to Darwin. Again opening up business and tourism opportunities.

 

If the Roma – Brisbane route is deregulated and there is an error in the current passenger forecasts resulting in a dramatic drop in passenger numbers, quality and frequency of available flights a case can be made to DTMR to have the route reregulated. 

 

A price comparison was also preformed with two other airports - one of a similar size, Emerald and one larger, Gladstone. The prices were taken from the Flight Centre website at 7:30pm on the 08/04/13 and are for a one way fare. Three dates were chosen, the next day, a week’s time and four weeks’ time. Recorded for each date is the cheapest and dearest fare;  also the average of the cheapest fare available on each flight. Below are the results:

 

 

Roma Brisbane

 

Cheapest

Ave Cheapest

Dearest

Next Day 9/03/13

 $ 274.10

 $ 313.83

 $ 364.00

1 week 15/03/13

 $ 152.09

 $ 250.27

 $ 41.10

4 weeks 06/04/13

 $ 152.09

 $ 152.09

 $ 64.00

 

Emerald to Brisbane

Next Day 9/03/13

 $ 135.00

 $ 204.00

 $ 721.01

1 week 15/03/13

 $ 85.00

 $ 111.40

 $ 721.01

4 weeks 06/04/13

 

$  85.00

 $ 108.11

 $ 580.00

 

 

Next Day 9/03/13

 $ 85.00

 $ 155.73

 $ 550.00

1 week 15/03/13

 $ 85.00

 $ 119.06

 $ 550.00

4 weeks 06/04/13

 $ 85.00

 $ 99.71

 $ 550.00

 

 

Rob Mactaggart from the airport group provided the following advice for consideration:

 

De-regulating the Brisbane to Roma Airport route will most likely result in additional RPT carriers wishing to start operating into the Roma Airport. The introduction of competition on a route usually has the following benefits.

 

1.   Reduced air fares.  Competition will usually result in a reduction in airfares as the carriers compete to retain their load factors.  Airfare reduction has flow on benefits to the community not only making air travel more accessible to a broader base of the community, but also making the region more accessible to tourists and business in general.

2.   Improved service. The operators will work harder to be the preferred carrier by improving service delivery, including frequency of services, airport facilities where possible, and route development and connections.

3.   Choice. Additional carriers offer the consumer choice, in terms of time of travel, and also airline networks, and ultimately destinations.

4.   Route Development. The operators have a vested interest in making the route a success. Competing for passengers they will be committed to route and regional development initiatives. This will also include introducing other potential city pair options based on passenger needs e.g. Roma – Gladstone, Roma – Sydney, etc.

5.   Connections. Brisbane Airport is the nearest international airport and increased flight options would provide further opportunities to connect internationally.

De-regulation of the Roma to Brisbane route would provide further options from heavy road, bus and rail usage for agriculture, tourism and energy industries.

 

Case Study - Gladstone Airport

Until April 2011, QF was the sole operator into Gladstone with a regular Brisbane – Gladstone flight. In April 2012 Strategic Airlines introduced a daily BNE – GLT route. QF airfares instantly dropped by over 40%. Strategic withdrew from Gladstone later that year and failed in February of the following year.  QF airfares immediately returned to their pre – Strategic levels. In March 2012, Virgin commenced flying BNE to GLT. QF again reduced its airfares to match Virgin’s. Both major airlines now operate sustainably at lower price levels that are far better for both public and business travellers.”

Keith Tonkin from Aviation Projects provided the following advice for consideration:

 

“Aviation Projects has been assisting Maranoa Regional Council with the planning, operation and management of Roma Airport since late 2011. In the course of this involvement, we have developed a sound understanding of the social and economic benefit that the airport provides to the Maranoa Region.

 

We strongly support de-regulation of the Roma-Brisbane regulated air service currently contracted to Qantas for a number of reasons briefly outlined below:

·    The route is not currently subsidised, but Qantas link enjoys the benefit of a monopoly on the basis of providing a minimum level of service that is being significantly exceeded in terms of the number and frequency of flights it operates.

·    Our conservative view of passenger demand indicates long term support for multiple operators on the route. For this reason we have recommended incorporation of facilities required to accommodate a second carrier in the passenger terminal redevelopment plan;

·    In addition to the significant number of flights operated by Qantaslink, there are multiple operators providing closed charter services on the route;

·    Current arrangements provide a disincentive to commencement of RPT services to other destinations such as Gold Coast, Sunshine Coast, Emerald and others (as evidenced by the complications associated with the option for development of RPT services between Roma and Toowoomba). Associated with this issue is the potential for enhanced efficiency through connections to other destinations that are not currently economically viable;

·    Responses to the customer survey conducted in support of the Airport Master Plan activity underway indicate strong local support for competition and an expectation of reduced air fares;

·    Introduction of a second carrier is likely to stimulate a small increase in demand for local residents if air fares reduce and improve affordability; and

·    A second carrier may provide enhanced connectivity to other destinations in its network.


Notwithstanding our strong support for de-regulation of the route, there are some potentially adverse effects that need to be considered and mitigated:

·    The number and/or frequency of flights may reduce to below a reasonably acceptable level if there is a significant reduction in passenger demand. This could be mitigated by ongoing monitoring for pre-determined rates of decrease or minimum rolling annual totals and re-regulating the route when appropriate;

·    There may be an impact on the number and/or frequency of flights to/from Charleville. This could be mitigated by offering the Roma/Charleville route as an extension of a Brisbane-Roma service or otherwise contracting the required level of service; and

·    There is potential for two carriers on the same route to closely align their schedules, resulting in larger busy hour passenger numbers and parking apron constraints. This situation has been anticipated and appropriate solutions have been incorporated in the Airport Master Plan.”

 

 

In summary it is recommended that the Roma – Brisbane air service route be deregulated.

 

·    The volume of flights far exceeds the 16 weekly flights that are regulated - currently there are consistently 50+ flights per week.

·    The Roma – Brisbane route is financially viable enough to sustain multiple aircraft operators removing a key reason that the route was originally regulated.

·    Deregulating the route will enable Skytrans the option to sell fares to the public for the existing 8+ flights that they are currently operating on a closed charter basis.

·    A second aircraft operator will also expand on the current Qantas link network, potentially adding additional destinations.

·    A risk in deregulating the Roma – Brisbane route is passenger numbers reduce to a point that the service provided is no longer adequate, although our current forecasts suggest this will not happen.  If that situation eventuates a case can be put to DTMR to re-regulate.

·    In deregulating the Roma – Brisbane route any additional operators that wish to start an RPT service at the Roma airport would do so through a negotiation with Council.

 

Bus

 

Council considered the matter at a recent workshop.   Following extensive discussion, Council would like to retain the current level of service.    The only addition was Councillors felt that there may be merit in considering a south to north service – e.g. from Moree to Emerald.    In the light that a significant number of our visiting public travels the inland route, this may be a viable option.

 

 

 

Train

Councillors expressed the view that the service should be continued in its current form -  it is an important service to the western towns, providing comfortable, cost effective travel.

Comments were also made that freight should be a far greater focus via trains to reduce heavy vehicles from roads.   This has significant potential to provide far greater use of this significant infrastructure, and would also subsidise the travel for passengers.

Consultation (internal/external):

 

Rob Mactaggart – The Airport Group

Keith Tonkin – Aviation Projects

Risk Assessment (Legal, Financial, Political etc.):

Nil

Policy Implications:

Nil

Financial Resource Implications:

Nil

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.5.1(a) To provide professional and technical engineering advice and support for Council in an effective and timely
manner.

Supporting Documentation:

1View

Roma Airport Passenger Forecast

D13/12709

2View

Ministers Request for Elected Member feedback

S13/2437

 

Report authorised by:

Michael Parker, Director - Infrastructure Services (Acting)  


Attachment 1

Roma Airport Passenger Forecast

 

 

 



Attachment 2

Ministers Request for Elected Member feedback

 







Maranoa Regional Council

    

General Meeting -  10 April 2013

Officer Report

Meeting: General  10 April 2013

Date: 5 April 2013

Item Number: L.2

File Number: D13/12759

 

Subject Heading:                     Provision of a Bus Shelter adjacent to the BP Service Station Arthur Street, Roma

Classification:                                  Open Access  

Name of Applicant:                         N/A

Location:                                           N/A

Author & Officer’s Title:                 Cindy  Irwin , Specialist - Infrastructure Program Funding

 

Executive Summary: 

A submission was made to the Department of Transport and Main Roads (DTMR) for a 50% subsidy towards the construction of a bus shelter adjacent to the BP Service Station Arthur Street, Roma for 2013/2014.

 

DTMR have recently advised that there is no guarantee of funding if submitted for 2013/2014 however if Council are able to complete the works prior to 25 June 2013, funding can be provided on the signing of a deed of agreement.

 

 

Officer’s Recommendation: 

Council advise DTMR that the construction of the bus shelter can be completed by 25 June 2013 and Council sign a deed of agreement so the funding can be guaranteed.

 

The matching funding to be provided by Council to be determined following the March Budget review process.

 

 

Body of Report:

Council resolution GM/01.2013/12 agreed to seek funding of 50% from DTMR and budget matching funds for the installation of a bus shelter in the 2013/2014 year.

 

A submission was made to DTMR for funding of $15,500 for the 2013/2014 year.

 

Councillor Denton requested Council to approach DTMR to see if there was an option to progress this earlier.

 

On the 5 April 2013, DTMR advised that funding would be available for 2012/2013 if works could be completed by 25 June 2013. 

Consultation (internal/external):

Julie Reitano – Chief Executive Officer

Michael Parker – Director Infrastructure Services (Acting)

Julian McEwan Manager – Roads & Drainage North & Regional Parks & Gardens

 

Risk Assessment (Legal, Financial, Political etc.):

Nil

Policy Implications:

Nil

Financial Resource Implications:

Council will be required to match funding provided by DTMR and will be responsible for the future maintenance of the bus shelter.

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.5.3(c) To develop an asset replacement program for Council’s roads infrastructure assets so as to ensure sufficient funds are available to undertake any asset replacement and renewal when required without creating an unnecessary financial burden on other Council operations and in the interest of long term sustainability.

Supporting Documentation:

Nil

Report authorised by:

Michael Parker, Director - Infrastructure Services (Acting)