The Australian Competition and Consumer Commission (ACCC) has called for a new regulatory watchdog to bring Australia’s major airports into line.
In its submission to the Productivity Commission’s inquiry into the economic regulation of airports, ACCC Chair, Rod Sims said that in a large country like Australia, airports were critical pieces of infrastructure that drive tourism and economic growth.
“Providers of key monopoly infrastructure such as the major airports are typically regulated to ensure that they will not exploit their market power,” Mr Sims said.
“This is not currently the case with Australia’s major airports.”
He said the ACCC could undertake only limited monitoring of the airports in Sydney, Melbourne, Brisbane and Perth.
“It is important that key monopoly infrastructure such as Australia’s major gateways are regulated,” he said.
“Monitoring regimes can influence behaviour if there is a credible threat of regulation.”
He said such a threat may have constrained airport behaviour in the past but the current regime is not effective in constraining behavior
Mr Sims said the range of services provided by airports, including aeronautical, car parking and landside access services with each requiring a different regulatory approach.
“It is important to ensure that the regulatory approach is fit for purpose and that the benefits of regulation outweigh the associated costs,” Mr Sims said.
The ACCC’s 59-page submission is available on its website and can be accessed at this PS News link.
