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Labor and Greens would block change to Qantas domestic ownership rules Labor and Greens would block change to Qantas domestic ownership rules
(about 4 hours later)
Labor and the Greens are ruling out changes to the legislative requirement that Qantas must be 51% Australian-owned, closing that option until at least next year, as the government searches for ways to quickly boost the competitiveness of the national carrier.Labor and the Greens are ruling out changes to the legislative requirement that Qantas must be 51% Australian-owned, closing that option until at least next year, as the government searches for ways to quickly boost the competitiveness of the national carrier.
The treasurer, Joe Hockey, has canvassed changes to the Qantas Sales Act, which dictates the national carrier must be at least 51% Australian-owned, as well as an injection of government aid, as possible ways to help Qantas cope with “very significant” challenges and compete with cashed-up rival Virgin. The treasurer, Joe Hockey, has canvassed changes to the Qantas Sales Act, which dictates the national carrier must be at least 51% Australian-owned, as well as an injection of government aid, as possible ways to help Qantas cope with “very significant” challenges and compete with its cashed-up rival Virgin.
Hockey has called for a “national debate” about whether Australia still needs a national carrier, and what price it was prepared to pay.Hockey has called for a “national debate” about whether Australia still needs a national carrier, and what price it was prepared to pay.
While Hockey has indicated he would prefer loosening the airline’s ownership restrictions, Tony Abbott said on Thursday he wanted it to remain an “Australian icon”.
“I want Qantas to remain an Australian icon, a successful Australian icon," the prime minister said.
"I want Qantas to be as successful as it can be in domestic and international markets. I know the management of Qantas is concerned that in some respects it is competing with one hand tied behind its back so to speak ... let’s see what the people of Australia think on this issue,” Abbott said.
“I am happy to look at a range of measures to ensure that happens but certainly at this point I am not being prescriptive.”
The shadow transport spokesman, Anthony Albanese, said there were “national interest and national security reasons” for Qantas to remain majority Australian-owned, and Labor would not support a change to that requirement, but would discuss other options for assistance to Qantas.The shadow transport spokesman, Anthony Albanese, said there were “national interest and national security reasons” for Qantas to remain majority Australian-owned, and Labor would not support a change to that requirement, but would discuss other options for assistance to Qantas.
“The whole point here is Australia needs a national airline that is majority Australian-owned and the policy implications of walking away from that are much greater than people outside the industry might think … ownership is the foundation stone of the global aviation industry,” Albanese said.“The whole point here is Australia needs a national airline that is majority Australian-owned and the policy implications of walking away from that are much greater than people outside the industry might think … ownership is the foundation stone of the global aviation industry,” Albanese said.
A spokesman for the Greens said they would also oppose any change to the ownership restrictions.A spokesman for the Greens said they would also oppose any change to the ownership restrictions.
Albanese said Labor would discuss the possibility of the government buying back a small stake in the carrier to “send a signal” to the markets that this was “not just any other company”.Albanese said Labor would discuss the possibility of the government buying back a small stake in the carrier to “send a signal” to the markets that this was “not just any other company”.
Hockey said the future of Qantas was “something we need to think about as a nation”. He said: “There are significant benefits to having a national carrier, but it comes at a cost … if Australia wants to place regulatory handcuffs on Qantas then we have to accept it comes at a cost.Hockey said the future of Qantas was “something we need to think about as a nation”. He said: “There are significant benefits to having a national carrier, but it comes at a cost … if Australia wants to place regulatory handcuffs on Qantas then we have to accept it comes at a cost.
“I don’t like the idea of putting taxpayers’ money behind Qantas but if that is the community view then we will have to pay the price,” he said. “Unquestionably [Qantas] growth is impeded in part by the restrictions that the parliament has placed on their share registry … the market has changed but still the restrictions are in place.“I don’t like the idea of putting taxpayers’ money behind Qantas but if that is the community view then we will have to pay the price,” he said. “Unquestionably [Qantas] growth is impeded in part by the restrictions that the parliament has placed on their share registry … the market has changed but still the restrictions are in place.
“If Australians understandably say no, we think it should remain not only Australian-owned but Australian-controlled and we need to have a national carrier, and I think there are many good reasons for that as well, then we've got to accept we may have to pay a price for that and that's a burden the taxpayers may have to pick up.”“If Australians understandably say no, we think it should remain not only Australian-owned but Australian-controlled and we need to have a national carrier, and I think there are many good reasons for that as well, then we've got to accept we may have to pay a price for that and that's a burden the taxpayers may have to pick up.”
The attitude of Labor and the Greens makes it impossible to get legislative change through the Senate before next July, and the attitude of crossbenchers after that remains uncertain.The attitude of Labor and the Greens makes it impossible to get legislative change through the Senate before next July, and the attitude of crossbenchers after that remains uncertain.
The opposition leader, Bill Shorten, also criticised Hockey for first floating the issue at a business lunch – from which his comments were leaked.The opposition leader, Bill Shorten, also criticised Hockey for first floating the issue at a business lunch – from which his comments were leaked.
Shorten said Hockey should “spare us the thought bubbles” and present a clear option for consideration if he had one.Shorten said Hockey should “spare us the thought bubbles” and present a clear option for consideration if he had one.
Qantas has been lobbying hard for government action to help it compete with Virgin Australia, which is now majority-owned by Singapore Airlines, Air New Zealand and Etihad and has received a $350m injection of funds from its foreign owners.Qantas has been lobbying hard for government action to help it compete with Virgin Australia, which is now majority-owned by Singapore Airlines, Air New Zealand and Etihad and has received a $350m injection of funds from its foreign owners.
The independent senator Nick Xenophon said he feared watering down the restrictions would leave Qantas vulnerable to a private equity takeover or a foreign takeover. "Both scenarios are bad for Australian jobs,” he said.The independent senator Nick Xenophon said he feared watering down the restrictions would leave Qantas vulnerable to a private equity takeover or a foreign takeover. "Both scenarios are bad for Australian jobs,” he said.
Albanese said having a designated national carrier was crucial for the agreements between countries over landing rights and Qantas also provided important national interest functions, for example evacuating Australians in times of crisis.Albanese said having a designated national carrier was crucial for the agreements between countries over landing rights and Qantas also provided important national interest functions, for example evacuating Australians in times of crisis.
The Qantas chief executive, Alan Joyce, has acknowledged a change to the Qantas Sales Act would be difficult.The Qantas chief executive, Alan Joyce, has acknowledged a change to the Qantas Sales Act would be difficult.
"The issues about the Qantas Sale Act is it's going to need an act of parliament to repeal it and I think in the current parliament getting it through the lower house and the upper house is an issue for us. We need urgent, immediate action on this. This can't take months or years to go through an appeal process in parliament,” he said."The issues about the Qantas Sale Act is it's going to need an act of parliament to repeal it and I think in the current parliament getting it through the lower house and the upper house is an issue for us. We need urgent, immediate action on this. This can't take months or years to go through an appeal process in parliament,” he said.
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