EXPENSIVE PROCESS: Council has revealed the cost of the proposed international airport’s joint venture process.
EXPENSIVE PROCESS: Council has revealed the cost of the proposed international airport’s joint venture process. Contributed

Airport expenses explained

WHITSUNDAY Regional Council has denied deceiving residents over reimbursable costs for the Proserpine airport's Joint Venture Expression of Interest Process.

The original plan was for council to develop the airport in conjunction with a partner while retaining a 51% majority share.

In February this year, local resident Colin Thompson asked council whether they had signed an agreement to pay the proponent's costs if the joint venture project failed.

At the time, council CEO Barry Omundson said "council would not be liable to pay their costs".

"There is nothing in the tender process that requires council to make any payment for costs," he said.

At last week's council meeting it was revealed the proponent had been paid $363,000 after the process was "complete".

Mr Thompson said he understood the necessity for commercial confidentiality, but believed ratepayers should have been informed.

"As shareholders in the region, the money is coming from us," he said.

"So we're entitled to know." Mr Omundson said the figure released last week was not a reimbursement, but payment for work done.

He said as negotiations progressed there was an agreement reached whereby council would provide some payment for reports received.

He added these reports included "economic analysis, flight analysis, all those types of things".

Mr Omundson said this agreement became necessary "towards the end of last year". "It has never been council's intention to deceive anybody," he said. "Which is why when (former deputy mayor) Rogin Taylor asked for the costs we provided him with the details he asked for."

COST BREAKDOWN

Advertising, promotion and community consultation: $36,140

Audit: $14,752

Scope and construction consult fees: $16,581

Expression of Interest consult fees: $1,282,875

Design: $22,095

Economic development: $4900

Valuation: $22,500

Travel and accommodation: $18,639

Salaries and vehicle costs: $168,670

International flights: $175,538

Expression of Interest proponent costs: $363,000

Total: $2,323,398


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