Branson barters money for jobs
The Courier Mail, Friday 11/10/02
Branson barters money for jobs
Matthew Franklin, state political editor
11oct02
The airline Virgin Blue is set to create 350 new jobs in Queensland.
The expansion would be part of a plan to fly overseas from Australia and build an aircraft maintenance facility in Brisbane.
Virgin founder Sir Richard Branson confirmed in London yesterday that he was negotiating with the State Government to capitalise on Virgin's huge success since it established itself in its Brisbane headquarters in 2000.
"It's certainly gone beyond our dreams," Sir Richard told The Courier-Mail.
"In time, we will do international flights and hopefully some of those flights will be out of Queensland.
"We are also in talks about setting up our own maintenance operation in Queensland and that will employ a lot more people."
The aviation coup for Queensland continues the State Government's push to establish the state as an Australian aviation headquarters.
Premier Peter Beattie, in London for a trade mission, said the deal was close to being finalised and would definitely establish Queensland as Australia's centre for aircraft maintenance.
"Aviation in Australia is moving north and that means jobs," he said.
"Under the proposal being considered, Virgin Blue will also commit to locating its planned Boeing 737 pilot training facility at Brisbane airport as well as guaranteeing future Queensland staff levels at its Brisbane head office will grow by at least 200 over the six-year period.
"The capital expenditure involved in both the maintenance and training projects will total more than $50 million."
Mr Beattie also confirmed that taxpayers would underwrite the deal with an incentive package including payroll tax holidays, training support and a cash component to assist with the initial investment.
But Mr Beattie, often criticised by the State Opposition for handing taxpayer money to international corporate giants, refused to reveal the value of the package, saying it was commercial-in-confidence.
He said Virgin had already hired about 1300 Queenslanders since it established its headquarters in Brisbane in 2000 – far exceeding job target commitments it made in return for incentives offered in its start-up deal.
"'Let's have honesty in this debate," Mr Beattie said.
"We have to realise that if we'd done nothing we'd have none of these facilities in Queensland and none of the jobs."
Sir Richard said the incentives were important because any international company looking at Australian operations thought of Sydney and Melbourne.
If governments in states such as Queensland did not offer incentives they would not win the business, he said.
"I was guilty of it as well when I was originally thinking of setting up down there," Sir Richard said.
Eventually, as Queensland grew as a business centre, it would not need to offer as many incentive packages.
Mr Beattie yesterday declared Sir Richard an honorary Queensland ambassador.
"He has helped put Queensland on the world aviation map and encouraged a level of competition in this country which we have not seen before in this sector," Mr Beattie said.
He also said his Government would spend $1 million on a tourism advertising blitz in the United Kingdom early next year.
A similar campaign run late last year had boosted tourism business from UK to Queensland by 21 per cent.