Deputy Prime Minister Michael McCormack has ruled out selling Wagga airport in its current form to the council because he claims it could "jeopardise" the future of the Royal Australian Air Force in the city.
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Wagga City Council has been pleading with the federal Member for Riverina to help resolve issues with the airport that are costing ratepayers about $200,000 a year.
The Department of Defence owns Wagga Airport, where it also operates the RAAF Base, with a section leased to council on a 30-year agreement that expires in 2025.
The council has asked the federal government to transfer ownership of the airport to the council, because the current arrangement means it spends ratepayers' money on operating and upgrading an asset it doesn't own.
But Mr McCormack said this morning that he didn't support council's request because allowing the airstrip to "go to council" could see the RAAF "revisit their need to stay there in the future".
"They're not getting it because I want the RAAF, which has been part and parcel of the city for decades, to continue to do the great job it does in a strategic base not just for our nation's security but indeed for our city and for our region," he said.
He said he would potentially be open to reviewing a proposal from council to separate the airport terminal from the runway.
General manager Peter Thompson said he wanted to "make it clear" that at no stage had council ever suggested that the RAAF base should be transferred to the council.
"Council has no information about why [Mr McCormack] thinks the RAAF base might be at risk," Mr Thompson said.
"Wagga has a long and proud history as a defence city and the Australian Defence Force can expect nothing but support from Wagga City Council and the Wagga community."
Mr Thompson said every other regional city in NSW, except Williamtown, had had their airports transferred into their ownership at no cost about 30 years ago.
"Even though all the other regional areas received ownership of their airports at no cost, the Wagga community is forced to lease its airport at a cost of $200,000 a year," he said in a statement.
"Wagga City Council does NOT seek to jeopardise or in any way interfere with the RAAF base at the airport.
"The ownership question is a direct response to the lack of support given by the federal government to maintaining the asset which it owns."
He said council was predicting a budgeted loss of $1.9 million to provide the airport service to the community.
Mr McCormack said he had asked council "a couple of years ago" for a submission for a business park that would bring more general aviation to the city.
"But I've been waiting for a couple of years. I'm more than happy to continue to have those discussions with the council. I know they want the best for the airport too."