Overview

The Competition and Consumer Act 2010 (Cth), enacted by the Parliament of Australia, was introduced to address issues related to fair trading and competition within the Australian market. One of its functions is to prevent anti-competitive behaviour and ensure consumers are protected from unfair practices. Declaration No. 93 under this Act was issued by the Minister for Competition, Consumer Affairs and Industry, and it designates the Sydney Airport Corporation Ltd as a declared person concerning the provision of aeronautical services and facilities for regional air services to and from Sydney Kingsford Smith Airport. This declaration, which extends the price notification arrangements from a previous declaration, restricts the corporation's ability to increase prices for these services, thereby maintaining fair trading practices and protecting consumers. The declaration is compatible with human rights as it does not engage any of the applicable rights or freedoms.

Scope and Application

The Competition and Consumer Act 2010, through its section 95X, empowers the Minister to declare certain goods or services as notified goods or services, as well as designate specific persons as declared persons in relation to those goods or services. This declaration restricts the ability of the declared person to increase the price of the notified goods or services, as outlined in section 95Z of the Act. Declaration No. 93 specifically applies to Sydney Airport Corporation Ltd concerning the provision of aeronautical services and facilities for regional air services to and from Sydney Kingsford Smith Airport. This legislative instrument, which is effective from 1 July 2013 until 30 June 2016, serves to extend the price notification arrangements previously established under the lapsed Declaration No. 92 of 2010. It has been registered as a legislative instrument under the Legislative Instruments Act 2003, fulfilling the requirement for its publication in the Gazette as stipulated in subsection 56(1) of the same Act. The declaration does not necessitate consultation as it essentially maintains existing regulatory frameworks. Furthermore, the instrument has been assessed and found to be compatible with the human rights and freedoms recognised or declared in international instruments, as required by the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

Section 95X of the Competition and Consumer Act 2010 (the Act) allows the Minister to declare certain goods or services to be notified goods or services, and a person to be a declared person in relation to those goods or services (s 95X). The effect of such a declaration is that the declared person’s ability to increase the price of the notified goods or services is restricted (s 95Z). Declaration No. 93, made under this authority, specifies that Sydney Airport Corporation Ltd is the declared person for the provision of aeronautical services and facilities for regional air services to and from Sydney Kingsford Smith Airport (s 95X). The obligations imposed by the Act on the parties it governs include compliance with the pricing restrictions outlined in section 95Z. For Sydney Airport Corporation Ltd, this means adhering to the limits on price increases for the specified aeronautical services and facilities. This ensures that the declared person does not exploit its position to unfairly charge higher prices, thus protecting consumers from excessive price hikes in regional air services. Any breaches of the Act’s provisions can result in significant legal consequences. Under the Act, there are both civil and criminal penalties for non-compliance. For instance, section 96 of the Act outlines that civil penalties may apply, with fines up to $1.1 million for corporations and $220,000 for individuals for serious or repeated breaches. Additionally, section 133 allows for criminal prosecutions where offences under the Act are committed, with potential maximum penalties of up to five years imprisonment for individuals and fines up to $6.3 million for corporations, depending on the severity and nature of the offence. These penalties are intended to deter non-compliance and ensure adherence to the Act’s provisions.