Airline Regional Express has not paid bills which total "some $350,000" for security screening at Dubbo airport.
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Dubbo City Council this week reported the total sum owing to it for a 16-month period from March last year when it introduced the measure.
As general manager Mark Riley provided the update to a council committee, he also advised councillors "the payment of this debt is to be pursued".
Two months ago Regional Express (Rex) lost against the council in the NSW Land and Environment Court, but the judge reserved a decision about costs.
The dismissal of Rex's case prompted the council to claim victory, saying it confirmed it could conduct security screening services at Dubbo City Regional Airport on a full cost-recovery basis and charge all regular passenger transport operators using the facility.
On June 30 a Rex spokeswoman told the Daily Liberal the company was consulting its lawyers about "its options and will make known its decision at the appropriate time".
The matter came up again in the latest and last quarterly review of the 2013-2014 budget, considered by the council's finance and policy committee this week.
"It is further advised that an amount of $350,000 has been transferred to an internally restricted asset as a provision for a doubtful debt in respect of the non payment to date by Regional Express Airlines of airport security screening fees which, for the period from March 2013 to June 2014, total some $350,000," Mr Riley said in the report.
"The payment of this debt is to be pursued."
Yesterday the Daily Liberal asked how the council would proceed and received a response from the general manager.
"Council is currently receiving legal advice in regards to the recovery of unpaid security screening fees following the Land and Environment Court judgement which found in favour of Council in the proceedings brought against it by Regional Express Holdings Limited (Rex)," Mr Riley said.
"As reported in the 2013-2014 Operational Plan - Quarterly Review as at June 30, 2014 contributions from rates and general revenue are being made to the Dubbo City Regional Airport via a restricted assets transfer as a provision for the non payment of security screening fees.
"No further decisions have been made in regards to the awarding of costs from Land and Environment Court proceedings.
"Council's legal expenses in respect of defending this matter except for a $5000 excess have been covered under council's 'Councillors and Officers Liability Insurance Policy'."
The Daily Liberal contacted Rex for comment but had received no response at the time of going to print.