Commission releases process and issues paper for review of airport services
31 May 2012
The Commerce Commission has released a process and issues paper for the review of how effectively information disclosure regulation is working in the airports sector.
The review will consider how effectively the regime is promoting the purpose of Part 4 of the Commerce Act 1986 in relation to specified airport services provided by Auckland International Airport Limited (AIAL), Wellington International Airport Limited (WIAL) and Christchurch International Airport Limited (CIAL).
Under section 56G(1) of the Act the Commission is required to report on this to the Ministers of Commerce and Transport as soon as practicable after any new price is set in or after 2012 by the airport companies. WIAL has set new prices for the specified airport services it supplies and has disclosed information under the information disclosure regime. Both AIAL and CIAL are expected to set new prices later this year.
Today's paper sets out the Commission's proposed process and seeks responses to a number of questions, including questions about WIAL's disclosed information and WIAL's conduct in the recent price-setting round. The Commission invites comment on any other aspect of the paper and invites submitters to provide any other information relevant to the review.
You can view the process and issues paper at www.comcom.govt.nz/section-56g-reports
Under subpart 11 of Part 4 of the Commerce Act 1986, suppliers of specified airport services are subject to information disclosure regulation.
Specified airport services have the meaning given to them in section 56A of the Act. The specified suppliers are the companies operating Auckland, Christchurch and Wellington International Airports.
The Commission's determination may require suppliers to disclose certain specified information relevant to their performance (such as financial statements, prices and quality performance measures), including forward-looking information (such as forecasts and asset management plans).
The purpose of this form of regulation is to ensure that sufficient information is readily available to interested persons to assess whether the purpose of Part 4 is being met.
On 1 March 2012, WIAL set their new prices for the period 1 April 2012 to 31 March 2017. Under clause 2.5 of the information disclosure requirements, WIAL had 40 working days to disclose information in relation to those new prices. WIAL disclosed that information on 30 April 2012.