Board Meeting: September 2014
Agenda Number: 8 (vi)
File Ref: A10023
LORD HOWE ISLAND BOARD
Business Paper
ITEM
LHI Air Services Strategy - Implementation
BACKGROUND
1. Visitor Economy Taskforce Report and Action Plan
The NSW Government established the Visitor Economy Taskforce to develop a strategy
to double overnight visitor expenditure to NSW by 2020. The Taskforce members were
Russell Balding, AO (Chairman), The Hon. Bruce Baird AM, John King OAM and Sandra
Chipchase, Chief Executive Officer, Destination NSW. The Visitor Economy Taskforce
Report and Action Plan were released by the NSW Tourism Minister in June 2012.
DNSW has the overall responsibility for implementing most of the recommendations with
the DG of Dept of Industry and Investment being the coordinating body to ensure whole
of Government action. However, the Action Plan identifies an action, which is the
responsibility of the Lord Howe Island Board. This responsibility was not conveyed to the
Board until very recently, when the Board was asked for an update on action taken.
In the Action Plan, under Airport Capacity- Regional Airports, there is the following
provision:
Lord Howe Island There are a number of challenges for future access to Lord Howe
Island that will need be addressed. QantasLink currently operates a Dash 8–200 to
service Lord Howe Island as it is the only aircraft in the Qantas fleet that can serve
the Island due to the size and nature of its runway. QantasLink has advised that this
aircraft, at some point in time, will need to be retired from their fleet. The current
runway on the Island will not accommodate landing by the new generation Dash 8–
300 aircraft – or aircraft of similar size.
Action 10E: Establish a working group to identify the issues concerning future access
to Lord Howe Island and make recommendations that plan for future access needs.
2. LHI Air Services Strategy
Separately to the Visitor Economy Taskforce Action Plan, the LHI Board had asked for
and considered an LHI Air Services Strategy at the May 2014 Board meeting. A
recommended action from the LHI Air Services Strategy is:
1. That, in 2014/15, grant funding be sought to undertake a feasibility study into
extending the airport runway
2. That, in 2015/16, a feasibility study into extending the airport runway be
commissioned, taking into consideration technical, financial, environmental and
community factors.
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3. That discussions be held with Qantaslink, the current operator, in the first instance
about the prospects for the air service to LHI beyond 2018.
CURRENT POSITION
In relation to action on the recommendations of the LHI Air Services Strategy, there is an
opportunity for funding of the feasibility study through the recently announced NSW Tourism
Infrastructure grants.
In order to assist the Board, Destination NSW has paid for a consultant to prepare a brief
and expression of interest for the feasibility study. Consultant Rodger Powell visited the
Island recently to:
Develop a brief for the Lord Howe Island Board for (i) a comprehensive feasibility
study of an extension of the Lord Howe Island runway and (ii) a funding application
by the Board for a Tourism Infrastructure grant for the feasibility study
The Board has not yet received a copy of the brief prepared by the consultant. However it
appears that this proposed feasibility study will meet the requirements of the Board’s Air
Services Strategy as well as the NSW Visitor Economy Taskforce Action Plan
Subject to the Board being successful in receiving major funding for the feasibility study, it is
proposed that a working group or project control group be established to oversee the project.
The project control group would consist of representatives of:
-
LHIB
DNSW
NSW Department of Trade and Investment
It should be noted that John Gissing, CEO of Qantaslink, will be meeting with the Board at
the time of the September Board meeting, and the various actions identified should be
discussed with him.
RECOMMENDATION
That, subject to funding being received for a major feasibility study on future access needs
including an extension of the runway, a project control group consisting of LHIB, DNSW and
the Department of Trade and Investment be established to oversee the project.
Prepared __________________
Penny Holloway Chief Executive Officer
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