[Peetwo]

Miniscule Dicky King mentions the A-Word: YSSY SLOT REFORMS?? -

From above:

Betsy and his Minions run amok with Aviation administration - UDB!

Via Parlview:

Senator CANAVAN: I wanted to change topics to the slots review. I'm just wanting to get an update. We've been waiting for the outcomes of this for a little while. Where are we up to with the review, and are there any potential decisions around the slots?

Ms Purvis-Smith : I think it's a matter for government as to the timing of any announcements. From memory, towards the end of last year the minister said she would have something further to say around slots. It's a matter for government as to when that will be.

Senator CANAVAN: Just excuse me—let me pop in and out of this issue. I believe there was a review conducted some time ago—a year ago now.

Ms Purvis-Smith : In 2020.

Ms Werner : February 2021.

Senator CANAVAN: That was completed, then?

Ms Werner : Yes, the review reported in February 2021.

Senator CANAVAN: Three years ago now. Have you provided any options to the minister around the former as a result of that review?

Ms Purvis-Smith : I think it's fair to say that we've provided advice to the minister around slots.

Senator CANAVAN: When did you provide that advice?

Ms Purvis-Smith : I might not have that with me. I'll see if my colleague Ms Werner has something along those lines.

Mr Vincent : The department has provided a briefing on a number of occasions, as set out in the aviation green paper. The government has been considering the recommendations of the Harris review and has indicated that it will have more to say in due course.

Senator CANAVAN: When did you brief or advise the minister on these options?

Ms Werner : On 28 October 2022, the department sought the minister's agreement to release an options paper in order to consult with stakeholders on the implementation of options recommended through the Harris review, which reported in 2021. We then provided further advice on the options from the options paper on 2 December.

Senator CANAVAN: 2022?

Ms Werner : 2022. On 15 February 2023 the minister agreed to limited stakeholder consultation on options, and on 19 May 2023 the department released an options paper to stakeholders. On 11 July 2023 the department provided the minister with advice on the outcome of the consultations. Following that, we briefed the minister on 31 August, 5 September and 11 October.

Senator CANAVAN: 11 October?

Ms Werner : 2023, yes. We've since briefed a certain number of times; most recently on 24 January this year.

Senator CANAVAN: I realise the initial delays—we had COVID and lots of impact, obviously, from that, but we're a couple of years on now. What's taking so long?

Ms Werner : I think, as Ms Purvis-Smith said, the government will make an announcement about the reforms in due course. That's all waiting for.

Senator CANAVAN: Minister, do you have anything to add? This is very important, obviously. It potentially has a big impact on airfares and supply of flights across the country. Why is the government sitting on its hands here when it's got these recommendations and a couple of rounds of consultation? What's the delay?

Senator Chisholm: I don't think you can suggest we're sitting on our hands given the thorough process that the department took through and the work that the minister has been doing. Obviously it is really important—I agree with that, Senator Canavan—but it's also complex. We want to make sure that we get it right. I would expect an announcement in due course.

Senator CANAVAN: Do you have a particular deadline in mind?

Senator Chisholm: I don't.

Senator CANAVAN: No date. 'Due course' is a long time.

Senator McKENZIE: Before the next election?

Senator Chisholm: Up to the minister.

Senator CANAVAN: Am I right in saying that the current regulations are subject to a sunsetting deadline with regard to the slots?

Ms Werner : Yes, that's correct. They're due to sunset in April 2024.

Senator CANAVAN: So only six weeks or so, I think. Easter.

Senator McKENZIE: What happens then?

Senator CANAVAN: Good question.

Ms Werner : The department or the minister has sought a deferral agreement from the Attorney-General to defer the sunsetting. We haven't had a response yet from the Attorney-General, but the plan is to defer the sunsetting.

Senator McKENZIE: When was that lodged with the AG?

Ms Werner : On 31 August 2023.

Senator McKENZIE: A little while ago.

Senator CANAVAN: But no response has been—

Ms Werner : No response has yet been provided, no.

Senator CANAVAN: Wow.

Senator McKENZIE: Right wing, left wing.

Ms Werner : Although we are in touch at official's level.

Senator CANAVAN: This particular sunsetting clause is in regulation, is it? It's in a legislative instrument?

Ms Werner : The sunsetting applies to all of the regulations after 10 years.

Senator CANAVAN: My point is that you don't need to come to the parliament, presumably, to extend the sunset period.

Ms Werner : Sorry, no.

Senator CANAVAN: You can change it through a—

Ms Werner : That would be a legislative instrument.

Senator CANAVAN: Yes, so another regulation can change it. Is that a disallowable regulation?

Ms Werner : Excellent question, Senator. I wouldn't want to mislead you; I don't know.

Ms Purvis-Smith : We'll take that on notice for you.

Senator CANAVAN: Take that on notice.

Senator McKENZIE: Can you do that in the next 15 days, before we get back to a sitting week, please.

Senator CANAVAN: You could possibly do it while we're here.

Ms Werner : I was thinking we can probably do that pretty quickly.

Senator McKENZIE: Possibly someone could check before 11 whether that's disallowable.

Senator CANAVAN: There would be someone there who could do that. So we only have six weeks and 12 sitting days before the deadline. Given the request to extend it, is the government not going to make a decision before Easter this year? Does it want to extend, given the advice—

Ms Purvis-Smith : That's up to the government as we have said. Any announcements are up to government. Sorry, are you talking about the deferral, or are you talking about the slots?

Senator CANAVAN: If the government's committed to make these changes in due course, but it's also, at the same time, seeking to extend the existing arrangements, I just wonder whether due course is actually beyond April this year.

Ms Purvis-Smith : It's up to the government. I think it's fairly shortly, but it's up to the government as to when it wants.

Senator CANAVAN: Has the department or the minister or the minister's office advised any of the airport industry; Sydney airport, the airlines that use Sydney airport? Has it advised any of them about the request to defer the current regulations?

Ms Purvis-Smith : I'm not aware of that.

Senator CANAVAN: If you could take that on notice—

Ms Purvis-Smith : I can.

Senator CANAVAN: To be clear: have you communicated that the minister has requested an extension, effectively, of the current system.

Ms Purvis-Smith : We can take that on notice.

Senator CANAVAN: It's the first I've known of it.

Senator McKENZIE: Of the AG, and he hasn't written back.

Senator CANAVAN: Back in August last year, too. It does seem strange. I'm not that close, as I said, but from what I've been reading, the minister sort of indicated that the decision may be imminent on this for some time, but we now find out that for six months or so, in fact, she's been seeking an extension of current arrangements. It seems strange. Why wasn't that request made public?

Ms Purvis-Smith : I think the extension of the current arrangements can happen—the announcement doesn't need to—it can be done kind of separately, is what I'm trying to say.

Senator McKENZIE: But there's been a lot of angst about slots over time.

Senator CANAVAN: They're not mutually exclusive. I think if some of the industry are listening to this and are only just finding out about it, they would be quite interested to know this. It seems strange that the government would hide it or be secretive about it.

Ms Werner : I think the only thing that's sunsetting is the regulation; the act, of course, doesn't sunset.

Senator McKENZIE: What's the practical implication of that?

Ms Werner : Were the regulation to sunset?

Senator CANAVAN: Yes.

Ms Werner : That would mean that some of the arrangements around demand management at Sydney airport would no longer be in place.

Senator McKENZIE: Such as?

Senator CANAVAN: Would none of them be in place? Would that allow Sydney Airport to effectively sell out slots to whoever it likes?

Ms Werner : No. The movement cap and the curfew would both remain in place. The regulations go to things like the constitution of the compliance committee and who can be appointed to that. It provides detail around what's contained in the act.

Senator CANAVAN: To be clear, what we're really interested in, as is most of the industry, is whether the sunsetting regulation mean that the major players—i.e. Qantas—won't have the same slots it has before 1 April? If this were to sunset, would it change that around? Would it change the number of slots that Qantas automatically has available to it?

Ms Werner : I believe that all that's sunsetting are the regulations. The Sydney Airport Demand Management Act will remain in place, as will the Sydney Airport Compliance Scheme and the Sydney Airport Slot Management Scheme.

Senator McKENZIE: What does that mean?

Senator CANAVAN: You seem to be reading off some talking points. That's not my question.

Ms Werner : Sorry.

Senator CANAVAN: I'm not asking a hypothetical question; I'm asking how the current regulations work, effectively. If they were to sunset, would Qantas potentially lose slots—the airport may decide to keep them.

Ms Werner : The only things that would sunset when the regulations sunset—the regulations go to the compliance committee, the functions of the slot manager and the requirements in relation to slot manager records. The regulations cover the composition of the compliance committee. They also cover the duration for which the slot manager must keep records and the secretary's power to request access to the slot manager's records. That's all that would sunset.

Senator CANAVAN: So the answer to my question is 'no', is it? They wouldn't necessarily lose slots from this sunsetting.

Senator McKENZIE: I think you've got the answer there. You have a colleague next to you.

Ms Werner : Mr Vincent?

Mr Vincent : It was mentioned that a deferral has been sought, and in that circumstance arrangements continue as they—

Senator CANAVAN: No, I'm asking whether, if the deferral is not granted and these regulations are sunsetted, would that mean Qantas might lose its share of the slots? Just a yes or no—it's a fairly factual and probably the most crucial question. I would have thought it would have been discussed.

Mr Vincent : I'd have to come back on the implications.

Senator CANAVAN: Can you take that question on notice?

Ms Purvis-Smith : We can take that on notice.

Senator McKENZIE: The department will have assisted the minister to write a letter to the Attorney-General seeking a deferral in August last year. As part of that work, I'm assuming you will have briefed the minister on what happens if it does sunset, what happens if it gets the deferral and what happens if it doesn't get the deferral. I am very confident in this department's ability to provide its ministers with the options they need to make sound decisions. My question to the officials who are in charge of this area is: was the minister briefed on the implications for deferral, extension and sunsetting? Yes or no?

Ms Werner : Yes, the minister would have been briefed on those things.

Senator McKENZIE: I think Senator Canavan's question is: what are the implications for it sunsetting? If you've already provided that advice to the minister, I'm still confused listening to the evidence here and I don't really have clarity on what happens if it does sunset in April.

Ms Werner : The issue is that there are four different instruments: the act, the regulation, the compliance scheme and the slot management scheme. We would need to take on notice the relationship between the compliance scheme and the slot management scheme, and the regulation.

Senator CANAVAN: In the act is there a default allocation of, or mechanism to allocate, slots in the absence of a legislative instrument or regulation?

Ms Werner : No.

Senator CANAVAN: When did the slots compliance committee last meet?

Ms Werner : It met in late 2020.

Senator McKENZIE: Why hasn't it met since 2020?

Ms Werner : The last meeting was on 9 July 2020, and then the appointments lapsed in 2020. It hasn't been reappointed.

Senator McKENZIE: Why?

Mr Vincent : The Australian government has been considering options to strengthen the compliance framework.

Senator McKENZIE: It’s 2024.

Senator CANAVAN: Did they lapse because the terms of the members finished at that date?

Ms Werner : Yes.

Senator CANAVAN: I suppose that was in the thick of COVID, so maybe there was a decision to hold off on appointing new people et cetera. It would have been dormant around that point. Has there been an explicit decision not to appoint new people to the slot committee?

Ms Werner : There hasn’t been an explicit decision not to appoint them. The thinking is that we are undertaking significant work around reforming what various elements of the slot management regime will do, including the compliance committee. Once those roles are understood, that would be the appropriate time to reappoint the compliance committee.

Senator McKENZIE: Is that all tied up in the green-paper white-paper process?

Ms Werner : No.

Senator McKENZIE: They’re completely independent?

Ms Werner : They’re two different reform tracks, yes.

Senator CANAVAN: Has the department suggested potential members to the minister for the committee?

Ms Werner : No.

Senator CANAVAN: So the minister hasn’t asked for any advice on who should—

Ms Werner : No.

Senator CANAVAN: The act mentions the compliance committee quite often. It’s got particular roles.

Ms Werner : Yes.

Senator CANAVAN: Section 66(1) of the Sydney Airport Demand Management Act 1997 says, ‘There is to be a Compliance Committee for Sydney Airport.’

Ms Werner : Yes.

Senator CANAVAN: But there isn’t one, and there hasn’t been one for nearly four years. How is the government in compliance with this act of parliament?

Ms Werner : The facts that you state are correct.

Senator McKENZIE: The question remains.

Senator CANAVAN: Has the department asked for any advice from the Attorney-General on this section of the act in the continuing absence of a compliance committee?

Ms Werner : I don’t think we’ve asked that specific question.

Senator CANAVAN: Maybe if you could take that on notice. This is an act of parliament, and your job is to implement acts of parliament. It doesn’t say the minister ‘may’ or ‘can’; it says, ‘There is to be a Compliance Committee for Sydney Airport.’ So what is the excuse for not creating a compliance committee?

Ms Werner : As I said, given that we are in the process of reforming what the compliance committee will do, it was considered appropriate to wait until that work is complete before reappointing the compliance committee.

Senator CANAVAN: Just to be clear: has the department advised the minister that it’s preferable not to-

Ms Werner : No.

Senator CANAVAN: So you’re not blatantly in breach of an act of parliament, because you have said a number of times that it was decided that it wasn’t worth establishing, or not appropriate to establish this committee, while this reform process goes on. Who made that decision?

Ms Werner : The department has made that decision.

Senator CANAVAN: Not the minister? The minister hasn’t said, ‘I don’t want’—

Ms Werner : No, not the minister.

Senator CANAVAN: How has the department taken upon itself to not do something that this parliament has said there must be? This parliament has said, ‘There is to be a Compliance Committee for Sydney Airport’. I don’t see how you’re not—

Senator McKENZIE: Under what power have you done that?

Senator CANAVAN: Yes.

Ms Purvis-Smith : I understand the question. I think, as Ms Werner explained, given the work undertaken in relation to reforming compliance and issues around this issue, decisions were taken not to instate the compliance committee. Also, there was a lot of feedback from previous members of the compliance committee that it wasn’t effective. So we are doing a lot of work to look at how it can be effective.

Senator CANAVAN: I don't think that helps; in fact, it makes the situation worse. It sounds to me that the department decided, 'This won't be a very effective body, so we just won't create it.'

Senator McKENZIE: 'We won't set it up.'

Senator CANAVAN: But the act of parliament says that there is to be one. It's not up to the department to decide that.

Ms Purvis-Smith : We are looking at ways of setting it up when we're looking at the compliance work that we're currently doing.

Senator CANAVAN: I think this is a matter that has to be looked at a bit more seriously by somebody. I don't think we should get in the habit of departments deciding they can ignore acts of parliament, as you clearly have in this case.

Senator McKENZIE: Have you let the minister know that this is the department's decision, Mr Betts?

Mr Betts : I think it's now on the public record, so this will be wrapped up in their wider consideration of the full process.

Senator Chisholm: Based on the timing, it did expire under the previous government if the dates were correct.

Senator CANAVAN: I'm making it very clear. I think, from the evidence we've received, that it doesn't sound like it's been an explicit decision of the minister—if we can trust the advice and evidence we've been provided with here. The department said they'd made the decision to not comply with this particular act. I just want to be very clear: has the department, at any time, advised the minister or written to this minister or a minister in the previous government—

Senator McKENZIE: Any minister—not Catherine King but the minister in the previous government.

Senator CANAVAN: to say, 'We know that section 66(1) of this act says "this", but we've decided "this".' Has that happened?

Ms Purvis-Smith : I'd have to take that on notice.

Senator CANAVAN: I definitely think this needs to be—sorry, I'm not making a political point. I think it's very important for the parliament to know that the laws we pass are implemented by the departments and agencies established for that purpose.

Senator McKENZIE: Just on that, I would like you to table or supply the committee with internal documents to the department showing when and how that decision to not comply with the act was made.

Ms Purvis-Smith : We'll take that on notice.

CHAIR: Senato

Sydney Airport Demand Management Act 1997

With the above in mind, I note that yesterday Miniscule Dicky King got out from behind her desk and actually made an announcement of reforms to the Sydney Airport slot management...

Reforming Sydney Airport slots to boost efficiency, competition and consumers outcomes

MEDIA RELEASE: Wednesday 21 February 2024

The Australian Government is today announcing a major package of reforms to the Sydney Airport demand management scheme, improving the use of this significant piece of national infrastructure while maintaining community protections.

These reforms follow an extensive consultation process and will deliver better efficiency, competition and consumer outcomes.

The Government is not making any changes to the existing curfew arrangements or movement caps at Sydney Airport.

To encourage competition, the Government will update the demand management system so that it better aligns with modern international standards.

The Government will significantly increase transparency about how slots are allocated. Airlines will be required to provide regular information on how they use slots, such as reasons for cancellations or major delays, and this monitoring information will be regularly published.

Independent audits of slot usage will be undertaken, with results published, to better detect and crack down on anti-competitive behaviour. This will help make sure that travellers have better information about airline performance.

The first such audit will be carried out this year, meaning that any misuse of slots will be uncovered and acted upon as soon as possible.

To ensure slots are not misused, the Government will modernise the compliance regime to include penalties that address anti‑competitive behaviours, along with updated and strengthened enforcement tools for the Government to watch airlines more closely and take effective legal action where necessary.

The Government is modernising the process that allocates aircraft slots to airlines at Sydney Airport to make the system more competitive and efficient. This will benefit new entrant airlines wanting to set up new services, crack down on slot misuse and create a more level playing field in slot allocation processes.

To improve connectivity for regional communities, regional NSW services will be able to apply to use any slot during new peak period hours (changing from 6‑11am/3-8pm to 7-11am/5-8pm), not just the slots that are already set aside for priority access by regional NSW services. The peak period is changing to help free up currently unused slots during 6-7am and 3-5pm so that the airport can better operate in the way it was always intended to.

In addition, when allocating slots to airlines, the Slot Manager will be required to consider giving priority to regional NSW airlines asking for peak period slots (7‑11am/5‑8pm) among the other priorities for slot allocation.

The Government is also going to introduce reforms that will increase the resilience of Sydney Airport and Australia’s entire aviation network by introducing a ‘recovery period’. This strictly controlled ‘recovery period’ will be implemented after severe weather events or other major disruptions, for example security issues, to temporarily allow up to 85 movements per hour for a maximum of two hours on the same day following the disruption.

There will be no increase in the overall number of flights for that whole day. This is because the scheduling cap of 80 flights per hour will stay in place – only flights that are already scheduled to happen that day will be able to take off or land.

This recovery period will not extend into curfew hours and there will be mandatory publication of information about when and why the recovery period is used so that the community can be confident it is being used properly.

This change will not increase noise impacts on communities, but it will mean more travellers can reach their destinations and spend the night at home rather than on a terminal floor or in a hotel room.

This package of reforms will benefit the flying public and include strong protections for communities affected by aircraft noise and those in regional areas.

The Government will be consulting with community and industry organisations on the best way to implement these reforms ahead of bringing forward legislation to Parliament.

This is just one element of the Australian Government’s plan to reform Australia’s aviation sector to crack down on bad behaviour and deliver better outcomes for the travelling public.

The Aviation White Paper, to be released later this year, will have more to say, including in regards to consumer protections.

For more information visit https://www.infrastructure.gov.au/syd-demand

And from Oz Flying:

80/20 RULE LOOKS TO SURVIVE GOVERNMENT OVERHAUL OF SYDNEY SLOTS
written by Jake Nelson | February 21, 2024

The Federal Government has unveiled a suite of reforms for the troubled Sydney Airport slot system, but has confirmed no change to the controversial 80/20 rule.

Movement caps and curfews will also remain at Sydney Airport, but the Government says its reforms will increase transparency around slot allocation, hold airlines accountable for “misuse” of slots, make the allocation process more efficient and introduce a “recovery period” after major delays.

Currently, an airline can keep a takeoff slot indefinitely as long as it operates the slot at least 80 per cent of the time, a rule whose architect – Rex deputy chairman John Sharp, who implemented it when he was in government – now calls it “too generous”...

MTF...P2