Targeted Assessment of Airport Regulation
We have undertaken a short, targeted assessment to examine whether current regulatory settings give confidence that major airport investment decisions promote the long-term benefit of consumers and found that there is more that could be done to achieve this.
As part of the assessment, we have considered the merits of initiating a section 56G inquiry under the Commerce Act 1986 and concluded that we will not do so at this time. This is because of the high-cost nature of this process, and the lack of flexibility of any resulting regulatory changes.
We have identified additional Information Disclosure (ID) requirements relating to major capital expenditure (major capex) decision processes that we consider could deliver some benefit, including requiring an independent verifier’s report.