QIC faces heat over aviation firefighting asset privatisation

QIC is facing pressure from the United Firefighters Union of Australia Aviation Branch (UFUAV) over its involvement in a deal that could effectively privatise part of Australia's Aviation Rescue Fire Fighting Service (ARFFS).

The ARFFS is owned and operated by government agency Airservices Australia.

Financial Standard understands under the proposal the strategic investment partner would own, maintain, improve and replace ARFFS vehicles, equipment and facilities. These assets would then be leased back to the service.

For several months now Airservices Australia has been in discussions with QIC for the investment giant to buy some of its equipment and infrastructure.

An Airservices Australia spokesperson said the partnership proposal is to fund the modernisation of ARFFS assets.

They added that Airservices Australia has been actively consulting staff, union representatives and government since December, and no decision has been taken to proceed with any proposal.

Financial Standard understands QIC will not be running the frontline services, and those responsibilities will continue to sit with Airservices Australia. Under the proposal, QIC will be financing and have asset ownership over the trucks, training facilities and stations.

It's also understood Airservices would retain full accountability for all regulatory and safety compliance and a governance structure would also be put in place, including members of staff and union representatives, to ensure a high standard of service delivery.

Firefighters would continue to be employed by Airservices and this proposal would not change how ARFFS operations are conducted, including how decisions on mutual aid to other emergency services are made.

UFUAV, representing aviation fire fighters, has called on major industry superannuation funds and their affiliated unions to scrutinise whether members' retirement savings could be funding the deal.

The likes of Australian Retirement Trust, Brighter Super, Hostplus and HESTA have member money invested in funds run by QIC.

UFUAV secretary Wes Garrett said the issue raised major questions for unions and workers whose retirement savings may be invested through funds connected to QIC.

"QIC's involvement in Airservices' attempts to privatise an emergency service raises a bigger question," Garrett said.

"If union-aligned capital can be linked to the privatisation of aviation rescue firefighting, what does that say about the values underpinning so-called responsible investment?"

Garrett noted industry super funds have built their reputation on serving workers and investing in long-term public interest.

"It is entirely reasonable for members and affiliated unions to ask whether backing a sovereign fund pursuing the privatisation of emergency services is consistent with those values," he said.

QIC has long held investments in the aviation industry. For example, it currently owns a 35% stake in Hobart international airport, a 25% stake in Brisbane airport and a 15.8% stake in Brussels airport.