Ballina Byron Gateway Airport has become so costly and risky for ratepayers that even the Greens are now suggesting privatisation may be the only way forward.

In what one councillor described as “not something we do very often,” Greens Cr Kiri Dicker broke with tradition to back a motion exploring different ownership and operating models for the airport.

“The airport is operating as lean as it possibly can,” she said.

“There’s no way to cut expenses, no way to lift revenue without major capital upgrades.

“When the Greens are telling you to privatise, it’s probably time to listen. 

“Airports are very exposed to risks we can’t control, as we saw during the pandemic. 

“And I think the federal government is less likely to give large infrastructure grants to councils when nearly every other airport in Australia is already privatised.”

A Dividing Line

Councillor Therese Crollick moved the motion for council to spend $40,000 on a consultant to prepare a sales strategy.

“I don’t think it’s viable that Ballina Council continue the way we are,” she told the September meeting of Ballina Shire Council.

“We’re not going to have the funding to do the major improvements that are needed.

“While I don’t recommend selling an appreciating asset unless you’re desperate, I do support investigating corporatisation or leasing arrangements that bring in a commercial partner.”

General Manager Paul Hickey agreed the status quo could not last forever.

“My worry is the infrastructure upgrades we need right now are significant.  Multi-million dollars,” he said. 

“We really need external funding to make things work. Without that, I think a sale or lease will become inevitable.”

Mayor Says No

Mayor Sharon Cadwallader, however, argued strongly against the move, citing the experience at Coffs Harbour where the former council airport was sold to a private operator for $25 million.

“Privatisation there has been a disaster for users,” she said.

“Airfares became unaffordable, and people are now driving up from Grafton to fly out of Ballina.”

“I’m not going to spend another $40,000 on yet another report that tells us what we already know. Maybe in the future, but not now.”

The Outcome

In the end, the motion to commission a sales strategy was defeated, with Mayor Cadwallader joined by councillors Bailey, Kinny, Loone, Ramsey and Meehan in voting it down.

A compromise motion from Cr Simon Kinny to simply “note” the report was carried unanimously.

Council has previously received similar reports every term, and the debate is expected to resurface. 

As General Manager Hickey reminded councillors the last time the sell-off was debated, there is nothing to stop a private operator making an unsolicited approach to buy or lease the airport at any time.

For now, Ballina Byron Gateway Airport remains firmly in council hands –  but with mounting infrastructure costs and diverging political views, the issue of ownership is likely only delayed  for take-off for now.