I have issued today a Direction, under the Prices Surveillance Act 1983 (PSA), to the Australian Competition and Consumer Commission to clarify the approach to be taken in the pricing of aeronautical services at Sydney (Kingsford-Smith) Airport.
The ACCC, in exercising its powers, and performing its functions under the PSA is currently considering a prices notification for aeronautical services from Sydney Airport Corporation Limited (SACL). In its draft decision, the ACCC has proposed an adjustment to allowable aeronautical revenue, which takes into account the airports performance in providing monitored aeronautical related services.
Todays Direction is intended to clarify for the ACCC the Governments view that in assessing prices for aeronautical services at Sydney (Kingsford-Smith) Airport the Commission should not take into account the revenues generated, or costs incurred, in the provision of services other than aeronautical services.
The general issue of prices regulation at Australian airports is currently being reviewed by the Productivity Commission, which will report its findings to the Government by December 2001. In accordance with its usual practice, the Productivity Commission will be considering submissions on the matter from all interested parties, and will provide a draft report to assist further public consultation and input.