Perspectives — Dick Smith

Improving efficiencies in airspace management and the privatisation of the Federal Airports Corporation’s 22 airports are key issues for the industry in the immediate future.

“Whichever party is elected to office, I believe they will continue with micro-economic reform. I think it will make Australia more competitive and it will reduce the cost of flying both commercially and privately. I expect the course towards privatisation of the FAC’s airports to continue, meaning that each airport owner will be doing everything he can to attract more people to that airport.

“I also believe that the Government will also go ahead in allowing competition with AirServices Australia,” Dick says. With the safety regulatory function removed from the ASA, the opportunity for competitor air services providers will enhance the level of service to the industry while maintaining Australia’s enviably high safety record. Dick suggests that savings in the order of $50 million are possible with competition and improved operational efficiencies. About one third of the savings would be passed on to the industry and eventually on to fare-paying passengers. “There will be a greater (revenue) return to the Government and some substantial reductions in charges to the industry: this will allow the industry to purchase more modern and safer aircraft,” says Dick.

As chairman of the CAA from 1990 to 1992, Dick championed widespread reforms of the “chronically bureaucratic” Government authority, including a move unpopular with the unions to retrench 3000 employees. His campaign lowered charges to industry users, representing an average annual saving of up to 20% over the three year period of his chairmanship.

“Competition is what we need — it benefits everybody.”

In the coming year Dick Smith also believes there will be some respite for residents to the north of Sydney Airport, regardless of the government elected. “Even if we don’t get a change of government, we will eventually get a Minister to replace Laurie Brereton — a Minister who doesn’t have his seat right at the end of the east-west runway. Then we will find that some commonsense will prevail with the use of all three runways. This can be done extremely safely and the noise burden around Sydney will be shared.”

Hopes that a change of government will bring about renewed interest in aviation do not suggest Dick Smith wishes to alter the course of the significant reforms in aviation made so far this decade, particularly in aviation safety.

“The Labor Government has made some great innovations in aviation, especially the economic deregulation of the airline industry — a great thing for Australians. It has meant that we have gone from 10 million passengers flying each year to over 22 million, taking people off the roads and into the air.

“Safety has continued to improve so we have saved lots of Australian lives. One of the main reasons for the drop in the road toll is that more people are flying, and we can be very proud of that.”

Beyond the influences of government, however, there is scope for the aviation industry itself to improve the environment in which it operates.

“I am really disappointed that industry itself has been traditionally weak when it comes to standing up for its rights, and that’s why I am so pleased with the gains made by the Aircraft Owners and Pilots Association (AOPA).” The Association’s firm agenda of stirring the political melting pot to gain a better deal for general aviation has seen it become a vocal force in Australian aviation policy.

“The last committee elections stood on the platform of making AOPA far more politically active. We have done that and we are getting enormous support from people in the industry, and we’re making major achievements which are saving us money,” Dick says. “In the short term we will see some large cost reductions. I believe we will be able to remove the 16 cents per litre Avgas levy which will really give general aviation a huge boost.

“This will be replaced with an enroute charge as is the system with Avtur aircraft. In over 90% of cases, GA aircraft will save thousands of dollars each year.”

With its new found place at the heart of Australian aviation industry politics and thousands of very active members led by Vice President Boyd Munro, Dick says, “In this coming election we will be closely examining what each party has to offer and we will be recommending to our members who they should support for the future of general aviation.”

Aviation is arguably one of the most important issues facing government at present, with vital aspects of the industry’s supporting infrastructure, particularly airports, yet to be rationally dealt with. The tide of community and industry concern over the ambivalence of government to address these issues with any degree of satisfaction may well tip Labor out of office.

“I am not a party political person and never will be, but I happen to believe that the present Government has been in too long and has gotten tired. I have great admiration for Hawke and Keating who have made some fantastic changes for Australia, but for the future of aviation this country, I really believe we need a change of government.”