Does the future of Corowa’s aerodrome lie in privatisation or should council retain ownership? Nominations will be called soon for an Aerodrome Advisory Group to consider the future.
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Duncan Fenn
It’s been a year since Federation Council recommended selling the Corowa Aerodrome within three years, but two years out from that recommendation, there is still uncertainty and confusion around the concept of divestment.
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At last month’s council meeting, general manager Adrian Butler advised that “time keeps going on and on” and it was time to put together an advisory committee to consider the aerodrome’s future.
Advertising will soon commence for nominations for a volunteer Aerodrome Advisory Committee, which is likely to consist of a range of stakeholders, including aviation specialists, active airport users, local business representatives, the Corowa Business Chamber, council staff and elected councillors.
At an extraordinary meeting in March, councillors resolved to establish a formal committee to lead the strategic divestment of the aerodrome to a suitably qualified private entity who is willing to acquire and assume full responsibility for its ownership on or before June 30, 2029.
This includes operation, maintenance, renewal, regulatory compliance and all associated risks and liabilities, with no ongoing financial or operational obligation remaining with Federation Council.
Stakeholders met with then Member for Farrer, Sussan Ley last year but they are still no closer to the answers they need.
But what exactly they meant by divestment was the topic at the June meeting.
Mr Butler suggested the terms of reference were directed around outright divestment which he said the community would understand to mean selling the aerodrome, rather than outsourcing management or long-term leases.
“I don’t think it needs to be that narrow; I think it needs to allow for council to see if they can take the middle ground, at least for a while,” Mr Butler said.
“It’s a big site out there … what does divestment even mean?”
Engineering Services director, Theo Panagopoulos said it was important to keep all the options on the table and compared the aerodrome to Ball Park Caravan Park.
“The asset is underperforming and needs a lot of money to make it perform better,” Mr Panagopoulos said.
“But council simply doesn’t have the funds to do it, so you put it out to market and see what someone else can do it for.
“Why would we push someone away that wants to invest $20 million… why would we exclude that as an option we’d consider?
“We need to get the aerodrome advisory committee up, but don’t stifle the outcome.
“It might be that council continues to operate (the aerodrome) in perpetuity, but it might be that there’s some investors out there who want to pour money into Corowa and the aerodrome.
“It’s a very similar discussion to Ball Park.”
While there was a general view that the first and most important step was to get the Aerodrome Advisory Group up and running, there was also agreement that more clarity was needed around what divesting means.
The days of passenger flights out of Corowa are long gone but the future of the aerodrome remains unclear.
Does it mean management and operation of the aerodrome, or of the freehold?
With Cr Derek Schoen proposing to rescind the March resolution, and keep the operations under council’s guidance, Mayor Cheryl Cook has asked for clarity.
“I just feel there’s some ambiguity around where we are trying to head with this,” Cr Cook said.
“There is a current motion on the books to divest … that we need clarity around that ‘divest’ is the issue here today.”
Cr Schoen said there should be negotiations on the terms of leases.
“If people want to invest in a hangar there, they aren’t going to do it for three years,” he said.
“They need security of at least 25 years for the site ... if we divest ourselves of the freehold, we lose control of that tenure.”
Cr David Harrison insisted that keeping the aerodrome in council’s hands would mean another Special Rate Variation (SRV) at some point in the future.
“If we’re going to keep it, we have to pay for it,” Cr Harrison said.
“If you put your hand up to keep control in council’s hands, you have to put your hand up to impose an SRV.”
Councillors unanimously resolved that, pending the Aerodrome Advisory Committee’s divestment outcome, Council will continue aerodrome operations with a revised fee structure.
Effective from this month, occupancy/service charges will rise to $1,760, a 68 per cent increase, with 5 per cent yearly increases.
Council will also introduce a $21,800 annual commercial rate for the site operator existing commercial business and a continued $19,816 ADF commitment.
