Commonwealth of Australia Explanatory Memoranda

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AIRPORTS AMENDMENT BILL 2010

                                  2010





               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA





                                   SENATE









                        AIRPORTS AMENDMENT BILL 2010







                    SUPPLEMENTARY EXPLANATORY MEMORANDUM





             Amendments to be Moved on Behalf of the Government









     (circulated by the authority of the Minister for Infrastructure and
                                  Transport

                    the Honourable Anthony Albanese, MP)



               AMENDMENTS TO THE AIRPORTS AMENDMENT BILL 2010

OUTLINE

The Airports Amendment Bill 2010 (the Bill) amends the Airports Act 1996 to
give effect to the legislative reforms announced by the Australian
Government in the National Aviation Policy White Paper Flight Path to the
Future (White Paper).  The White Paper, which was released on 16 December
2009, outlines the policy settings on aviation and airports and the long-
term approach the Government has taken, or will take, to achieve these
policy objectives.

The Bill was passed in the House of Representatives on 25 October 2010.  It
was introduced in the Senate on 26 October 2010 and referred to the Senate
Rural Affairs and Transport Legislation Committee (the Committee) for an
inquiry.  The Committee received 34 submissions and heard evidence from
several industry and organisational representatives including officers of
the Department of Infrastructure and Transport.

These Government amendments are in response to stakeholder comments on the
Bill.  The amendments would clarify the Government's policy intentions,
correct drafting errors and  improve drafting of certain provisions to
avoid unintended consequences.

The Government amendments proposed to the Bill are to:

      . replace the term "incompatible development" with the term
        "sensitive development'';
      . clarify that a Major Development Plan (MDP) is required only for
        runway alterations that significantly change flight paths or
        patterns or levels of aircraft noise.  They will also ensure
        maintenance works on runways (for example, patch repair of runways,
        crack sealing, runway resurfacing, upgrade of navigation aids and
        the like) or changes such as lighting or markings on runways, will
        not require an MDP even if short-term changes are made to flight
        patterns while the work proceeds;
      . clarify the definition of 'sensitive development' to improve the
        drafting of the original provision in the Bill;
      . clarify the definition of "educational institution" in new section
        71A in the Bill to ensure that facilities for staff training by
        organisations operating at the airport would not require an MDP;
      . make the exemption provision in new subsection 89(5) workable by
        removing the phrase "increase the operating capacity of the
        airport" in paragraph 89(5)(b);
      . correct a drafting error in Note 2 under section 89A; and
      . correct an inadvertent mistake in relation to paragraph 71(3)(d) by
        retaining the phrase "in accordance with regulations, if any made
        for the purpose of this paragraph".


FINANCIAL IMPACT STATEMENT

The measures proposed in this Bill are budget neutral.

Detailed explanation of amendments

Item 1 - Paragraph 71(3(d)

   1. In relation to paragraph 71(3)(d) in the Bill, the phrase "in
      accordance with regulations, if any, made for the purpose of this
      paragraph" is being retained in the existing provision of the Act.
      This will make paragraph 71(3)(d) consistent with existing paragraph
      71(2)(d).

Items 2- 5, 11-13, 16-20, 22-33 - sensitive developments

   2. The term 'incompatible development' in the Bill is replaced with the
      term 'sensitive development'.  This amendment aims to counteract
      concerns that the use of the term 'incompatible' implied this type of
      development would never be approved or allowed at the airport site.

Item 6 - sensitive developments

   3. New section 71A in the Bill provides for a definition of 'sensitive
      development'.  This amendment would clarify that a 'sensitive
      development' is a "development of, or a redevelopment that increases
      the capacity of, any" of the items enumerated in new section 71A.



   4. The amendment is technical in nature to correct a flaw in the drafting
      of the original provision in the Bill.  The phrase "that increases the
      capacity" is intended to qualify only the term 'redevelopment'.



   5. The phrase 'increase in capacity' referred to in this provision refers
      to the potential for increase in the number of residents in a
      residential dwelling, the number of patients in a community care
      facility, the number of students in a pre-school,  primary, secondary,
      tertiary or other educational institution, or the number of patients
      in a hospital.



   6. A redevelopment of a facility of a type listed in new section 71A that
      does not increase the potential number of residents, students or
      patients would not be captured by the provision.



   7. Any new development of a type enumerated in new subsection 71A(2) that
      is constructed is captured by the provision.

Item 7-10 - excluded facilities from the scope of 'sensitive developments'

   8. New subsection 71A(2A) provides for a list of facilities that are
      excluded from the meaning of the term 'sensitive development'.  The
      items listed in new subsection 71A(2A) are taken from subsection
      71A(2) of the Bill except for paragraph (d) which is an additional
      item to clarify the policy intention.



   9. It is the policy intention that facilities for the purpose of
      providing in-house training to staff employed by organisations
      conducting operations at the airport are excluded from the meaning of
      'sensitive development'.  This is clarified in the Explanatory
      Memorandum to the Bill.  However, for the avoidance of doubt, an
      express provision to this effect is now included in the Bill.

Item 14 - new paragraph 89(1)(ba)

  10. The Bill inserts new paragraph 89(1)(ba) identifying runway
      alterations as major airport developments.  The amendment clarifies
      that only an alteration to a runway that significantly changes flight
      paths or the patterns or levels of aircraft noise would require an
      MDP.  Alterations to minor elements such as lighting or marking on the
      runway would not require an MDP even if they affect, to some extent,
      flight paths or noise patterns during those works.



  11. It also puts beyond doubt that maintenance works on the runway like
      resurfacing to the original specifications, crack sealing, patching,
      and other repairs on the runway would not require an MDP.



  12. It is the Government's intention that while an MDP may not be required
      in cases of minor runway alterations or runway maintenance works, it
      would still be appropriate for the relevant airport-operator company
      to take steps to inform the community of such works and their short-
      term impact.  This would be consistent with the White Paper theme of
      encouraging improved consultation by airports with local communities
      and other stakeholders.

Item 15 - new subsection 89(5)

  13. Under new subsection 89(5), the airport-lessee company may apply to
      the Minister to exempt developments specified in paragraph (1)(c),
      (d), (f) or (g) from the MDP process.  The Minister may grant such
      exemption after considering certain criteria listed in paragraph
      89(5)(b).



  14. The first criterion ("increase the operating capacity of the airport")
      is being deleted.  This would ensure that subsection 89(5) could be
      practically implemented.

Item 21 - Note 2 in new section 89A

  15. Note 2 is being amended to correct a drafting error.