The Australian Competition and Consumer Commission today released an issues paper in regard to the revised draft pricing proposal recently received from Sydney Airports Corporation Limited. The proposal regards SACL's intention to raise charges for aeronautical services at Sydney (Kingsford Smith) Airport.
SACL is subject to economic regulation by the ACCC. Although the regulatory regime applying to SACL does not include a price cap on aeronautical services, it is in other respects similar to that applying to the 'core regulated' airports. For example, SACL is subject to quality of service monitoring, and price monitoring of aeronautical related services. Aeronautical services at Sydney Airport are subject to a prices surveillance regime that requires SACL to notify the ACCC of price increases for these services. The ACCC is required to object or not object to those increases.
"The release of the issues paper marks the commencement of the ACCC's formal process of assessment of SACL's proposal", ACCC Chairman, Professor Allan Fels, said. "In making this assessment the ACCC intends to conduct a public consultation process. The paper outlines the major milestones in the process. It also provides guidance on the substantive questions the ACCC is seeking to have addressed by parties making submissions.
"The process will proceed as follows:
- A request for submissions from interested parties. These are to be provided to the ACCC not later than 30 November 2000. Given the ACCC's preference for a transparent process, submissions will be made publicly available on the ACCC's website at www.accc.gov.au. Parties wishing to supply information regarded as commercially sensitive to the ACCC should clearly identify the specific areas of concern in any submission. The ACCC will consider requests for confidentiality on a case by case basis. Where the ACCC is not satisfied of the need for confidentiality it will contact the person making the request. That person will have the opportunity to withdraw the information if confidentiality has been refused.
- An industry discussion forum to be held in mid-December.
- Release of a draft decision. This will set out the ACCC's preliminary conclusions and the reasons for reaching them. The draft decision will take into consideration the submissions provided by interested parties. It is anticipated that the draft decision will be released early next year.
- Public consultation on the draft decision. This will provide an opportunity for further submissions.
- Release of the ACCC's final decision. The final decision will include a detailed statement of reasons.
"The Sydney Airport pricing proposal represents a very significant event in the aviation market. The ACCC encourages all interested parties to contribute to this important public consultation process".
The issues paper and the SACL proposal will be available on the ACCC website at www.accc.gov.au.