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Tuesday, 6 December 1983
Page: 3339

Question No. 111

Dr Klugman asked the Minister for Aviation, upon notice, on 10 May 1983:

Can he indicate how many persons are estimated to be employed (a) at Kingsford- Smith Airport, New South Wales and (b) in industries connected with, and in the vicinity of, the airport.

Mr Beazley —The answer to the honourable member's question is as follows:

(a) A total of 13,512 people were employed at the airport as at 30 September 1981. I do not expect that a recent survey of airport employees, carried out by a consultant and yet to be supplied to the Department, will disclose any significant change from the 1981 figure. The total of 13,512 included:

International airlines (excluding Qantas) 178 Qantas 8,466 Ansett Airlines of Australia 1,137 Trans Australia Airlines 876 Air New South Wales 200 East West Airlines 203 Department of Aviation 825 Department of Business and Consumer Affairs-Customs 328 Other Commonwealth Departments, etc. 321 Miscellaneous (including oil companies) 978

TOTAL 13,512

(b) Based on a recent check of direct employment, by my Department, a total of about 1,200 people are employed in industries connected with, and in the vicinity of, the airport. All but a few are employed by freight forwarders, customs agents and freight couriers. In addition, there would be a smaller number who are indirectly employed in the vicinity of the airport by virtue of the airport's existence and tourism. For example, small contractors and service industries would gain work from the airport and the Sydney Airport Hilton Hotel is established next to the airport to service the public travelling through the airport.

In 1978, as part of the Major Airport Needs of Sydney study, a survey was carried out by a consultant to identify, amongst other things, the nature of the firms highly linked with the airport-airline industry and the nature of those linkages. A total of 130 firms-(based on advice from Qantas, Pan-Am, TAA and Ansett-were identified as being firms directly associated with the airline operations of Kingsford-Smith Airport and supplying greater than $50,000 worth of goods and services to the airlines. The survey population included firms supplying catering, fuel, parts and maintenance, as well as freight forwarders and couriers and excluded firms associated purely with airport terminal operations such as the shops and the catering facilities which service this area .

Of the 130 firms, 40 were selected as a sample and classified into four industry groups as follows:

* Fuel suppliers

* Freight and cargo handlers

* Caterers

* Miscellaneous

The fourth category comprised suppliers of technical equipment to airlines as well as cleaning, transport, and securities services.

Of the forty firms approached in the industry survey, 26 firms responded by completing the questionnaire provided at meetings with the firms.

The following information was compiled from the completed questionnaires and relates to 26 of the 130 firms identified.


Number of related Total Category

firms employees employees

Fuel suppliers 1 34 Not supplied Freight 10 867 1,233 Catering 5 41 353 Miscellaneous 10 263 4,784

Totals 26 1,205 -

The following information gives an indication of the economic and spatial linkages between the industries and airport, as abstracted from the consultant report.

Fuel Category The airport component of the firm's production represents only about 6 per cent of the total value of production of the firm. The firm operates a head office in the city, a refinery at Kurnell and three terminals including one at the airport.

Freight and Cargo Handlers Category Of the four industry categories in the survey, the freight and cargo industrial category is the most highly and specifically linked with the airport. Spatial linkages are also extremely evident in that all 10 firms were located at Mascot, though several had other city and suburban branches. Of the 10 firms, six were involved exclusively in airfreight. Four of the sample were involved primarily in international airfreight, with little or no emphasis on the domestic market.

Catering Category On the economic and spatial criteria, the linkages between the airport-airline and catering industries are less well defined. The percentage value of total production related to the airline industry for the sample firms ranged from 4 to 20 per cent. Nor are inter-industry linkages between catering firms and the airport important from a spatial perspective. The catering firms are located in both inner and outer suburban areas. In no case was any firm located in close proximity to the airport.

Miscellaneous Category Similar results were obtained for the miscellaneous industry category as for the catering category. The stated economic linkages were extremely disparate, with one firm claiming 100 per cent airport related, three more than 50 per cent and the remainder less than 5 per cent. Spatial linkages in this category were also tenuous with only one of the 10 firms located at Mascot.