The Australian Competition and Consumer Commission has considered Melbourne Airport’s proposal to introduce a taxi fee of $1.40. The ACCC Commissioner with responsibility for airports, Mr John Martin, said the ACCC accepts that $0.66 of the proposed fee is justified as necessary new investment attributed to the taxi facility.
"This decision does not necessarily prevent Melbourne Airport from introducing the $1.40 fee", he said. "But if Melbourne Airport wants to bring in the full fee it will need to lower other aeronautical charges. Melbourne Airport will have to seek ACCC approval of any such off-setting proposal.
"Melbourne Airport notified the ACCC of the proposed taxi fee on 30 March 2001. The airport says the fee is justified by infrastructure spending, including the construction of a new taxi queuing facility and certain roadworks. Melbourne Airport also seeks to recover the costs of taxi rank management labour.
"The ACCC considers some of the costs built into the proposed fee are not justified as new investment. In particular, the new taxi queuing area partly replaces an existing facility, so only a portion can be recovered.
"Melbourne Airport’s proposed fee was calculated on the basis of a 10-year recovery period, yet Melbourne Airport intended to impose the fee indefinitely. The ACCC considers a 20-year recovery period more accurately reflects the life of the assets. The ACCC calculates the charge on that basis".