Helipad lease “anti-competitive”

Central Coast Council has been accused of anti-competitive behaviour for its decision to begin exclusive negotiations with only one provider for a heliport lease at Central Coast Airport at Warnervale.

Mark Lamont, partner of Councillor Corinne Lamont, wants the Australian Competition and Consumer Commission (ACCC) to investigate Council’s actions.

“I referred the Council heliport lease process to the ACCC on the grounds that Council’s process is anti-competitive and not likely to deliver commercial terms in the public interest,” he said.

“It is not a complaint against the development, or the airport, or heliport. 

Mark Lamont

“It is not anti airport, it is pro-competition, demanding a better deal, better aviation for the Coast.”

Lamont said Central Coast Aero Club’s lease with Council for the Warnervale airport site was negotiated without any apparent competitive bidding, and current negotiations with Nighthawk Aviation Pty Ltd for a heliport lease at the same site also lacked a competitive process, raising concerns of anti-competitive behaviour and lack of transparency which is not in the Central Coast community’s interest.

“Both instances reflect direct negotiations rather than a transparent public tender, potentially contravening competitive neutrality principles,” he said.

“With the introduction of Western Sydney Airport and the dislocation that will have on Bankstown Airport, it is likely that the Central Coast aviation landscape will become increasingly attractive, yet Council is currently in exclusive negotiations for a heliport lease with only one local provider, Nighthawk Aviation Pty Ltd.

“This is anti-competitive and not in the public interest..

“The absence of competitive processes could limit opportunities for other businesses and may not deliver the best economic or operational outcomes for the public.

“Given the non-competitive nature of current heliport leasing negotiations, Council will be more likely to be a price taker than a price maker, that not being in the public interest.”

A Council spokesperson, responding to questions on Lamont’s action, revealed that a second rescission motion had been received about the lease, meaning the matter would again be debated at a Council meeting.

In November, Council voted 8-7 to authorise CEO David Farmer “as a matter of urgency, to negotiate, finalise and execute an aviation services lease for a helicopter hub over part of Central Coast Airport” with parties represented by Nighthawk Aviation.

The parties were not revealed.

The decision included a request that the CEO provide a copy of the lease to Council at least 15 days prior to executing any lease and with “a summary due diligence report”.

The report to the councillors noted that the proposed lease was for 40 years and the business wanted a quick response as it was understood that they were being actively encouraged to consider an alternative base at a major regional airport in another state.

The December 10 Council meeting dealt with a rescission motion put forward by Councillor Margot Castles (Labor councillor from The Entrance Ward) who wanted the matter to wait until the Council had signed off on its upcoming airport masterplan.

That rescission motion was defeated 8-7 with the same voting pattern that had endorsed the original lease decision; with Liberals and Team Central Coast making up the eight and Labor and two Independents making up the seven.

Council has yet to sign off on the masterplan for the airport but it is expected to be one of the first items to be dealt with this year.

The masterplan went out on public exhibition in late 2023/early 2024 while Council was under administration.

In April 2024 the Administrator directed staff to note the feedback and to finalise the masterplan.

The public exhibition did not include a Section 11 which dealt with the expansion and co-ordination of rotary operations at both Warnervale airport and the Erina helipad site where Coast Helicopters had operated until 2021 when Council-under-administration did not renew its lease.

“It is with much sadness and regret that we must inform you of Central Coast Council’s decision to not renew our lease of the Erina heliport,’’ the company’s website still states, four years later.

“Further, Central Coast Council has prohibited the use of the heliport for any tourism or charter related services altogether. 

“After 12 years of servicing the Coast with tourism, charter and fire fighting services we are immensely disappointed.”

Lamont said he has asked the ACCC to investigate whether there may be anti-competitive links between the unexplained shutdown of the Erina heliport operation and the sudden, non-competitive actions to establish a new heliport lease with a sole entity at Warnervale.

The ACCC said it did not generally comment on complaints received or potential investigations.

Council responded by saying it had resolved to undertake due diligence, enter negotiations and, after advice to councillors, enter an agreement with Nighthawk Helicopters for a lease on a site within the Warnervale airport.

“A rescission motion was unsuccessfully moved against this at Council’s December meeting and a further resission motion has been submitted which legally cannot be considered for a further three months,” a Council spokesperson said.  

“Staff are still in the due diligence phase of the process with Nighthawk Helicopters. 

“Mr Lamont is entitled to raise any concerns he has with any regulatory agency.”

Merilyn Vale