Councils lose bid for airport rates

TWO Tasmanian councils have lost a Federal Court bid to have fees they say are worth millions of dollars paid by the state’s two biggest airports.

Clarence City Council and Northern Midlands Council took the Federal Government and Hobart and Launceston airports, respectively, to court but the cases were dismissed by Justice David O’Callaghan yesterday.

Justice O’Callaghan, in his decision, said the councils did not have standing to bring the cases because they were not parties to the respective lease agreements.

In a statement issued outside court, Clarence Mayor Doug Chipman said his council was “extremely disappointed” the case was dismissed.

“The decision by the Federal Court to dismiss this case is a significant setback for our community and raises serious questions regarding the equity of rates allocation for our community,” Alderman Chipman said.

“Council will need to assess the impact of this decision on ratepayers of the city.

“Council will now seek clarification on the decision and will be reviewing its legal options before commenting further on the decision.”

Northern Midlands Mayor Mary Knowles said her council was also disappointed and would consider appealing against the decision.

Hobart airport welcomed the court’s decision.

Airports on federal land are exempt from paying rates under state legislation but are required to pay councils a rate equivalent.

Hobart and Launceston airports — which each have lease agreements with the Federal Government — were both found to have increased in value by the state’s ValuerGeneral in 2013 but both airports have disputed the revaluations.

Justice O’Callaghan said the trial, held over several days in March and July in Hobart, dealt with many issues.

“There was extensive evidence and lengthy crossexamination about proper land valuation methodologies,” he said. “Detailed oral and written submissions were made, among other matters, about the proper construction of the leases … the admissibility of evidence, parliamentary privilege, and whether a fire service rate ‘levied’ by the councils is a fee for service or a tax.”

Justice O’Callaghan said the Federal Government agreed the airports had paid the appropriately calculated amount of equivalent rates for the financial years ending in June 2014, 2015 and 2016.