During last month, the local Gladstone Observer newspaper reported that the Gladstone Regional Council will take back a $28 million debt to protect Gladstone Airport from the result of a future reduction in flight numbers, under a proposal being made to the Queensland Treasury Corporation.
When Gladstone Airport Corporation took over management of the airport from the council in 2012, it inherited a $65 million debt. The airport, facing reduced flight numbers as LNG plant construction winds up on Curtis Island, wants the council to shoulder nearly half the debt. And in 2012, the airport board chairman promised the council's massive investment in the airport would pay off.
Research has shown flight numbers would likely reduce significantly over 18 months as construction on Curtis Island comes to a close. Reduced flights are expected to reduce airport revenue to dangerously low levels.
If the proposal goes ahead, ratepayers would be affected. Council had been planning to take the debt back for some time, and was not critical of the airport corporation.
The proposal:
• Total airport debt to be repaid: $61 million
• Repayments to Queensland Treasury Corporation will not change
• $33 million will stay with Gladstone Airport Corporation
• $28 million will be paid off by Gladstone Regional Council
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