EXPLANATORY STATEMENT
Select Legislative Instrument 2012 No. 184
Subject - Airports Act 1996
Airports Amendment Regulation 2012 (No. 1)
Section 252 of the Airports Act 1996 (the Act) provides that the Governor-General may make regulations prescribing matters required, or permitted by the Act to be prescribed or necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
The Act provides for a comprehensive regulatory regime for Commonwealth-owned and privately-leased airports. The Act also provides that much of the detail of the regulatory regime can be dealt with in subordinate legislation by providing numerous matters for which regulations may be made.
Adelaide Airport is currently subject to mandatory price and quality of service monitoring along with Sydney, Brisbane, Melbourne and Perth airports.
In 2011 the Productivity Commission undertook an Inquiry into the Economic Regulation of Airport Services. The Commission recommended Adelaide Airport be excluded from annual mandatory price and quality of service monitoring because of the reduced level of market power held by Adelaide Airport after the finalisation of long term commercial agreements. The Government agreed with this recommendation, subject to Adelaide Airport agreeing to participate in the second tier airport price and quality of service reporting process established by the National Aviation Policy White Paper of December 2009. Adelaide Airport has agreed to this.
These amendments to the Airports Regulations 1997 would exclude Adelaide Airport from mandatory price and quality of service monitoring.
Details of the proposed Regulation are at Attachment A.
The Act specifies no conditions that need to be satisfied before the power to make the proposed Regulation may be exercised.
The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulation is taken to have commenced on 1 July 2012. Retrospective commencement is sought so as to remove the obligation for Adelaide Airport to keep records related to mandatory price and quality of service monitoring for the period between 1 July 2012 and the date of Royal Assent for these amendments. Pursuant to subsection 12(2) of the Legislative Instruments Act 2003, the retrospective commencement does not disadvantage, nor impose liabilities, on any person.
Adelaide Airport was consulted on the proposed amendments and did not object.
Authority: Section 252 of the
Airports Act 1996
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Airports Amendment Regulation 2012 (No. 1)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Legislative Instrument provides for minor technical amendments to the Airports Regulations 1997. The changes reflect the recommendation of the Productivity Commission inquiry into the Economic Regulation of Airport Services to remove Adelaide Airport from mandatory price and quality of service reporting.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
ANTHONY ALBANESE
Minister for Infrastructure and Transport
Details of the Airports Amendment Regulation 2012 (No. 1)
Section 1 – Name of Regulation
This section provides the title of the Regulation as the Airports Amendment Regulation 2012 (No. 1).
Section 2 – Commencement
This section provides for the Regulation to commence retrospectively as of 1 July 2012.
Section 3 – Amendment of Airports Regulations 1997
Schedule 1 amends the Airports Regulations 1997.
Schedule - Amendments
Items [1] – [2] – Paragraphs 7.02B(a) and 8.01(a)
Both paragraphs 7.02B(a) and 8.01(a) previously contained the words Adelaide Airport. The omission of these paragraphs gives effect to removing Adelaide Airport from the mandatory monitoring scheme.
Overview
The Airports Amendment Regulation 2012 (No. 1) was introduced to amend the Airports Regulations 1997 under the Airports Act 1996. Enacted by the Australian Government, this regulation aims to address the recommendation of the Productivity Commission's Inquiry into the Economic Regulation of Airport Services in 2011, which suggested excluding Adelaide Airport from the annual mandatory price and quality of service monitoring due to the reduced market power following the finalisation of long-term commercial agreements. This change was agreed upon by the government, contingent on Adelaide Airport agreeing to participate in the second tier airport price and quality of service reporting process established by the National Aviation Policy White Paper of December 2009, to which Adelaide Airport consented. The regulation, which came into effect retrospectively from 1 July 2012, ensures Adelaide Airport is exempt from mandatory monitoring, streamlining its regulatory oversight. This adjustment aligns with the policy objective of tailoring regulatory requirements to the specific market conditions and competitive landscape of individual airports.
Scope and Application
The Airports Amendment Regulation 2012 (No. 1) pertains to the Airports Act 1996, which establishes a regulatory framework for Commonwealth-owned and privately-leased airports in Australia. This Act allows for the creation of regulations to detail and implement the regulatory regime, and it applies to all major airports including Adelaide, Sydney, Brisbane, Melbourne, and Perth. The regulation in question specifically amends the Airports Regulations 1997 by removing Adelaide Airport from the mandatory price and quality of service monitoring regime. This change was made in response to a recommendation by the Productivity Commission, which found that Adelaide Airport held less market power following the finalisation of long-term commercial agreements. The regulation came into effect on 1 July 2012, with retrospective commencement to remove any record-keeping obligations for Adelaide Airport for the period before the regulation was enacted. This retrospective effect does not disadvantage or impose liabilities on any person, as required by the Legislative Instruments Act 2003. Adelaide Airport was consulted on these changes and did not object to the amendments. The regulation does not engage any human rights issues, as confirmed by the Statement of Compatibility with Human Rights.
Key Provisions
The Airports Amendment Regulation 2012 (No. 1) introduces specific changes to the Airports Regulations 1997 in response to recommendations made by the Productivity Commission. According to Section 3 of the Regulation, these amendments remove Adelaide Airport from the mandatory price and quality of service monitoring regime. This change is reflected in the Schedule to the Regulation, where amendments are made to paragraphs 7.02B(a) and 8.01(a) of the Airports Regulations 1997, by omitting the reference to Adelaide Airport. The Regulation is designed to streamline regulatory requirements, recognising the reduced market power of Adelaide Airport following long-term commercial agreements.
The Amendment Regulation imposes specific obligations on Adelaide Airport and other affected entities. Primarily, Adelaide Airport is now exempt from the mandatory price and quality of service monitoring, as outlined in the amended paragraphs. However, this exemption comes with the condition that Adelaide Airport participates in the second-tier airport price and quality of service reporting process as stipulated in the National Aviation Policy White Paper of December 2009. This ensures that some level of oversight and reporting remains in place, albeit at a reduced regulatory burden.
Failure to comply with the obligations set forth in the Amendment Regulation may lead to legal consequences. While the specific offences and penalties are not detailed within the Regulation itself, breaches of the Airports Act 1996 and its subordinate legislation can attract penalties under the Act. The maximum penalties for non-compliance with regulatory requirements can include fines and, in severe cases, criminal charges. These penalties serve to ensure adherence to the regulatory framework and maintain the integrity of the aviation service standards.
The Regulation is intended to commence retrospectively as of 1 July 2012, as provided in Section 2. This retrospective commencement aims to eliminate any obligation for Adelaide Airport to maintain records related to mandatory price and quality of service monitoring for the period between 1 July 2012 and the date of Royal Assent for these amendments. Importantly, this retrospective commencement does not impose any disadvantages or liabilities on any person, as stipulated under subsection 12(2) of the Legislative Instruments Act 2003. This ensures that the changes do not unfairly impact any party involved.
In summary, the Airports Amendment Regulation 2012 (No. 1) introduces technical amendments to the Airports Regulations 1997, primarily by removing Adelaide Airport from the mandatory price and quality of service monitoring regime. The Regulation imposes specific obligations on Adelaide Airport and other entities, while also outlining the legal consequences for non-compliance. The retrospective commencement of the Regulation ensures a smooth transition and maintains the regulatory framework's integrity.