All GA operators are facing substantial increases in overall operating costs as Cost Recovery takes hold. Not that GA feels it is owed a free ride, it simply does not want or require the vast majority of services supplied by the DofA that are almost totally aimed at the RPT airline system. The operators of this Cessna 172, the Cheyenne and the commuter Chieftain have all had to face increases in fuel taxesthrough 1986 of more than 150%. In fact for 1986/87, revenue gained in taxation from the aviation sector will comfortably exceed the DofA's outgoings by more than $300m yet the aviation sector is still being asked to give more in the misstated interests of Cost Recovery
AOPA Fights For General Aviation
Aopa Fights for General Aviation’s Survival
In the 1950’s, 60’s and early 70’s general aviation in Australia flourished. Private and sport flying became increasingly popular. Cessna, Piper and Beechcraft aircraft were being imported in record numbers and Australia had a local manufacturer, Victa, producing and exporting an Australian-designed light aircraft. Those were the high times. Aircraft were affordable, fuel was cheap and government charges were reasonable.
We in general aviation (mistakenly with hindsight) also took for granted a multitude of changes in rules and regulations and a dramatic growth in the bureaucracy which we were led to believe would improve aviation infrastructure. We did not question the Government when it increased expenditure from £50m – $100 million – to $200 million, $300 million and now $500 million per annum. We could, I suppose, be accused of having had a ‘cargo cult’ mentality towards aviation expenditure.
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The Aircraft Owners & Pilots Association (AOPA) concerned itself mainly with opposing the loss of freedoms and the increase in rules and regulations – the result of the sheer weight of numbers in the controlling bureaucracy.
Suddenly in 1981 the balloon burst! The infamous ‘General Aviation Study’ conducted jointly by the Department of Transport and the Bureau of Finance and Economics was handed down. Recommendations included in this study called for massive increases in government charges on general aviation by over 1,000%. The general aviation sector was stunned! Through apathy we allowed the monster to grow over the years and now it had turned around and bitten us.
The AOPA conducted highly successful protest rallies around Australia opposing these proposed increases and considerable pressure was brought to bear on the then Minister for Aviation, the Hon Mr Ralph Hunt. Finally, the Liberal Government decided to abandon the cost recovery recommendations contained within the ‘General Aviation Study’. General aviation was saved from destruction and the industry returned to ‘normal’.
However, the AOPA remained concerned about the size and cost of the Department of Transport/Aviation and that some future governments would seek to impose the full cost of this monolith of a public service bureaucracy on the industry it purported to serve. We felt that a review of the size, function and efficiency of the Department was imperative and feared that at some time industry would be asked to perform the impossible- pick up the tab for the Department of Aviation.
Many members of our Association felt they were already paying too much for a service which they did not require and did little to enhance the safety of their operations. They perceived the Department of Aviation to be obstructive and generally hindering their day-to-day operations.
By and large, the Labour Party, then in opposition, supported our stance and joined us in our call for an independent inquiry into the Department of Aviation. After gaining office in 1983, an inquiry was instigated- the Bosch inquiry. However, the aviation community felt cheated as, within the terms of reference, Henry Bosch and his committee were restricted from inquiring into the efficiency and size of the Department of Aviation. The subsequent independent inquiry was into aviation cost recovery.
Nevertheless, even though it was outside the terms of reference, the Bosch Report on Cost Recovery did state that, ”There was an urgent need to improve the efficiency of the Department of Aviation and reduce their costs. ” It was further stated that governments had over-invested or over-serviced the industry and finally, “If major reductions in departmental costs can be achieved, cost recovery can be attained in 1995 without increasing the real burden of industry charges. ”
The Minister for Aviation accepted the Bosch recommendations and informed the industry that it was the Government’s intention to implement the recommendations in the Bosch Report. We were told, in fact, that the Bosch Report would be implemented in full. We would not be “. . . picking the eyes out of it. ” We”. . . had to take the good with the bad. ” In the strongest possible terms, the AOPA and the rest of the industry was being told that we had to accept the Report and that the Government intended to proceed along the lines of the recommendations.
The AOPA accepted reluctantly. We felt that the Bosch Committee had not been able to inquire sufficiently into the reasons for these costs in the first place – the high cost and inefficiency of the Department of Aviation!
At the same time, Dick Smith, renowned helicopter pilot and business entrepreneur released a book depicting his frustrations and dealings with the Department of Aviation- ‘Two Years in the Aviation Hall of Doom’. This book, which was highly critical of the Department, was an instant success and many thousands of copies were sold. Non-aviators were astounded to read of the actions of the Department and embarrassing questions were asked in Parliament.
The AOPA continued to pressure for an independent inquiry into the Department of Aviation and finally the Government relented and set up a Parliamentary Committee to investigate the allegations contained in Dick Smith’s book. Submissions from the industry were called for and as a result over 800 written submissions were made listing the grievances of the industry. Supporting Dick Smith’s allegations and calling for an independent inquiry into the Department of Aviation.
When one considers the size of the Australian aviation community. 7,000 aircraft and 30,000 pilots-this return of over 800 submissions was an outstanding success. By normal standards 20 to 30 written submissions from a body of interest of this size would have been considered a strong response.
The more than 800 people who put pen to paper showed the real concern of Australian aviation for its future. In fact, so overwhelming were the 800-plus submissions that the Parliamentary Committee conducting the inquiry did not know where to start. They were reportedly horrified at the thought of investigating each and every one of the submissions. In fact, they have been so overwhelmed that in the past two years they have done virtually nothing.
This delay plays into the hands of the Government who have remained steadfast in their opposition to an independent inquiry whilst seeking, by every means possible, many and varying ways of taxing the aviation sector for every possible function of the Department.
In an endeavour to justify their actions in increasing taxes on the aviation industry, the Government has sought public support by making statements to the press like. . . “The families of Australia are paying $1⁄2 million per day to support the aviation sector” or . . . “This government is not going to allow the Australian community to continue to pay $1⁄2 million per day to support the aviation sector. ” What they conveniently have not told the Australian community is that Government taxes on aviation are running at approx. $815 million per annum (fuel taxes and levies, air navigation charges, departure taxes, airport rentals and leases, etc. ) and are by aircraft numbers or by head of population the highest in the world. Not only does the aviation sector pay its way (ie. , pay for the enormous and mostly unnecessary costs of the inefficient Department of Aviation – some $500 million per annum), but pays over $300 million per annum into consolidated revenue to the benefit of the ‘families of Australia’. It is time the Australian community was given the honest facts in this matter.
The problems for aviation do not end there. On October 22, 1986 the Minister for Aviation, the Hon Peter Morris announced that the Government had taken an in-principle decision to form the Civil Aviation Corporation (CAC). The Government has taken the UK Civil Aviation Authority as its broad model.
Whatever happened to the recommendations contained within the Bosch Report? What of the cost of this inquiry and the thousands of hours of work by both the Bosch Committee and the aviation industry?. . . and the statement that the Bosch recommendations were to be implemented in their entirety? We suddenly have a new set of rules. Is the Government seeking to impose more taxes and charges on the aviation community and make an even greater profit? Are they looking with envy at the British Airports Authority (BAA) who in 1985/86 made a profit of over A$200 million? Are they seeking to emulate Heathrow Airport where one small charter operator, who moved 1,144 passengers out of and 1,069 passengers into Heathrow during the same period, paid BAA a total of £60,927 (A$142,000 or A$64. 00 per passenger) to use the facility? It is all very well for the Government to form a corporation or a monopoly similar to Australian Airlines or the ABC, but Australians don’t have to travel on Australian Airlines or listen to the ABC. Aviators don’t have any such option. Their only way of avoiding increased charges is to hand in their licences, sell their aeroplanes and get out of the regular stream of aviation. They could take up flying ultralights, but perhaps it won’t be long before the Government gets its sticky fingers into the wallets of this form of aviation also.
The AOPA has resolved to fight for the survival of general aviation. It is our intention to follow the example of the farmers, mountain cattlemen and other groups who are suffering at the hands of the Government. We will use our strength of numbers- our 10,000 members to take the fight for survival into the electorate and, at the same time, give our support to those members of Parliament who are sympathetic to the problems of the aviation community and publicly state that they will not tax Australian aviation into oblivion.
Pilots, aircraft owners and those associated with the aviation industry can assist by adding weight to our numbers. . . join AOPA. The annual fee is only $30. 00 and in return members receive twelve monthly issues of our AOPA magazine, our AOPA aircrew card, free insurance offer, legal referral service, etc. $30. 00 is a small price to pay to help secure the future of Australian aviation.
AOPA can be contacted at their new Canberra office: Unit 34, Fyshwick Plaza, 59 Wollongong Street, Fyshwick 2609. Telephone: (062) 80 4440.
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