Can fuel excise fire up industry unity?

The $89m raised over 4 years will pay for 97 new positions within CASA. The rationale behind the new positions is not the main issue, albeit still a very important one. The breakdown of the positions was extracted at the hearing and is available on Hansard. It is abundantly clear that the government can apply a significant new tax to our industry without any public consultation. In addition, Australian aviation has been expanding its fuel buy at approximately 6% per annum over the past ten years. If the fuel uptake rate remains constant over the next four years CASA will achieve a $44m pay rise on top of the $89m from the excise increase.

The aviation industry is a house divided and in some ways we get the treatment from government that we deserve. The two aviation associations at the Senate table represent approximately 20% of the domestic aviation industry. In the Senate’s mind that meant 80% of the industry were at best disinterested in the issue. End result, the Aviation Fuel Excise Bill passes easily, after some protests in the upper and lower Houses.

The industry has only one choice. On issues common to all aviation sectors the industry must find a way to speak with one voice. Governments of all persuasions respond to strength and cogent argument. The quality of information coming from the aviation associations is very good but necessarily focuses on a particular section of the industry. However, when there is an issue or a cost impost that affects all aviation sectors there is still no national voice. In this vacuum governments may talk to the larger players only and then consider their consultation duty done. Even this modicum of consultation, to the RAAA’s knowledge, did not occur with respect to the new fuel tax increases. The industry can complain as much as it likes but the industry has not provided a national body to which national aviation issues can be referred or opinions sought, except in a piecemeal, sectoral fashion.

The industry’s abject defeat on the fuel excise increases must become a line in the sand. National aviation issues such as security, training, capital depreciation rates and ageing aircraft to name just a few require a clear, researched industry response.

However, it is not all doom and gloom. Significant industry players, past and present are stirring, and strenuous efforts are underway to address the lack of a national aviation voice. Cynics may say that they have heard all this before but there is clearly a new urgency. Aviation is rarely mentioned as vital national infrastructure. This must change if the industry is to reach its considerable potential.
We have a great story to tell but our message is garbled. In operations, clear communication is vital. Let’s apply this principle to our political representatives that are purportedly our servants.