Prices Surveillance Act 1983 - Declaration (No. 66) - Civil Aviation Authority

Overview

The Declaration (No. 66) — Airservices Australia was introduced under the Prices Surveillance Act 1983 and continues to be in force under subsections 95X (1) and (2) of the Competition and Consumer Act 2010. This legislative instrument was enacted to address the need for oversight and regulation of services provided by Airservices Australia, specifically terminal navigation, firefighting and rescue, en route air route and airway facilities, and safety regulatory and other safety-related activities. The policy objective of the Declaration is to ensure that Airservices Australia, as a declared person, complies with the provisions of the Act when setting charges for these notified services, which are critical to the operation of Australia's air services industry. This instrument was prepared by the Office of Legislative Drafting and Publishing, Attorney-General’s Department, Canberra, and was signed by Simon Findlay Crean, the Minister of State for Science and Technology, acting for and on behalf of the Treasurer.

Scope and Application

Declaration (No. 66) — Airservices Australia, originally made under the Prices Surveillance Act 1983 and now in force under the Competition and Consumer Act 2010, identifies certain services provided by Airservices Australia as notified services, subject to the Act. These services include terminal navigation, firefighting and rescue, en route air route and airway facilities, and safety regulatory and other safety-related activities. The Declaration applies to these services specifically when a charge is specified for them in a proposed determination of charges under section 52 of the Air Services Act 1995. Airservices Australia is designated as a declared person in relation to these services, thereby subjecting its conduct concerning these services to the provisions of the Act. The geographic reach of this Declaration is national, impacting all entities and persons involved in the specified services across Australia. The Declaration does not specify any exclusions, exemptions, or thresholds, and its application may be extended or restricted through subordinate instruments as needed.

Key Provisions

The Declaration (No. 66) — Airservices Australia made under subsections 95X(1) and (2) of the Competition and Consumer Act 2010 identifies certain services provided by Airservices Australia as notified services. These services include terminal navigation, firefighting and rescue, en route air route and airway facilities, and safety regulatory and other safety-related activities. These services are specified as notified services (Section 2(a)) when a charge has been determined for these services under section 52 of the Air Services Act 1995. Furthermore, Airservices Australia is designated as a declared person in relation to these services (Section 2(b)). This means that the provisions of the Competition and Consumer Act 2010 apply to the pricing and service provision of these specific activities. The obligations and requirements imposed on Airservices Australia, as the declared person, are primarily to comply with the competition and consumer protection laws. This includes ensuring that the pricing and service provision for the notified services do not engage in anti-competitive behaviour, misleading or deceptive conduct, or unfair practices as outlined in the Competition and Consumer Act 2010. Airservices Australia must also ensure that its activities do not unfairly discriminate against any person or class of persons and that its conduct is fair and reasonable. Additionally, Airservices Australia must adhere to any specific conditions or requirements set out in the determination of charges under section 52 of the Air Services Act 1995. Breaching the obligations and requirements of the Competition and Consumer Act 2010 can result in significant penalties. For corporations, the maximum penalty for serious or repeated contraventions of the Act can be up to $10 million for each offence, or three times the benefit, if any, that the corporation gained from the contravention. For individuals, the penalties can be up to $1.1 million for serious or repeated contraventions. Furthermore, individuals may face imprisonment for up to five years. These penalties reflect the serious nature of compliance with competition and consumer protection laws and the importance of ensuring fair and reasonable conduct in the provision of notified services.