Covid Shadow Cast Over Airport Viability

COUNCILLOR Sue Abbott has put forward a notice of motion for tonight’s Council meeting to pause the proposed $23million Scone airport development until the economic ramifications of the pandemic are better understood and an independent review of the business case has been made.

Update: Airport Project to be Independently Reviewed.

The Council has plans to take out a $10.8 million loan to undertake the development, which if profits are not realised could result in a 6 percent rate rise for residents. (Read: Letter: Can’t Walk Past This One).

Cr Abbott has stated, “Covid-19 has cast a very dark shadow over the long term prospects of all tourist facilities in New South Wales, Australia and the world, hence it would be inappropriate to approve the Scone Airport and Aviation Museum Project without thoroughly investigating the risks and projections for this costly and very niche proposal.”

Cr Abbott’s motion is to have an external review and a comprehensive business plan before proceeding with the project.

The recommendation from Council staff is not to support Cr Abbott’s motion stating that, “whilst the impact of Covid-19 has had short term impact on tourism, the medium and longer term impacts are not known at this stage. It must be remembered that the new airport project will deliver benefits for decades to come.”

Daryl Dutton, concerned resident and former general manager of the Upper Hunter Shire Council, has said Council must reassess the project in light of the economic impacts of the pandemic and failure to account for the impacts could be negligent.

“The broader issue of the Australian and world economies will impact on the ability of people to attend those sorts of things (airshows) and spend money,” said Mr Dutton.

“Now is not the time to plunge forward with this, they need to take another six months and work out what that impact could be,” he said.

“It is boarding on negligence to proceed at this time…individual Councillors and staff members can be surcharged for making negligent decisions,” he warned.

“They have not shown they have received or approved the loan for $10million and it seems they want to proceed with he project without having the money in bank,” he said.

“I think it is appalling that there would be $10 million much better return on investment and community benefit, rather than the airport narrow focus and narrow beneficiary.

“Rather than this project being a stimulus it will actually be a drag on our local economy.

“Even with best predictions for the first few years it is an economic loss and the only way predicted to get out of the drag is by some magical growth figure which are beyond belief.

“The cancellation of this year’s airshow represents a lost projected profit of $311,000, it’s not just the $12,000 they’ve spent promoting it.

“They lost $50,000 on the last airshow, so they’re already behind their own projections by $400,000,” he said.

“The general manager has said insurance can cover if an airshow is cancelled, but insurance might pay back some of your outgoings, but you can’t be insured for lost profit opportunity, you can’t insure against donations lost, or services provided in lieu.

“You can’t pay back a $10million loan on lost profits from an airshow,” he said.

“It’s too risky in this current economic climate post-covid and things have changed considerably to what they were four or five months ago,” Daryl Dutton said.

Related stories: Scone Airport Development.